(Adopted at the 19th Meeting of the Standing Committee of the Sixth National People's Congress on January 22, 1987, promulgated by Order No. 51 of the President of the People's Republic of China on January 22, 1987, and effective as of July 1, 1987)

CHAPTER I GENERAL PROVISIONS

Article 1. This Law is formulated for the purpose of safeguarding state sovereignty and interests, strengthening supervision and control by the Customs, promoting exchanges with foreign countries in economic affairs, trade, science, technology and culture, and ensuring socialist modernization.

Article 2. The Customs of the People's Republic of China shall be the state organ responsible for supervision and control over everything entering and leaving the customs territory ( hereinafter referred to as inward and outward persons and objects). The Customs shall, in accordance with this Law and other related laws and regulations, exercise supervision and control over the means of transport, goods, travellers' luggage, postal items and other articles entering or leaving the territory (hereinafter referred to as inward and outward means of transport, goods and articles), collect customs duties and other taxes and fees, uncover and suppress smuggling, work out customs statistics and handle other customs operations.

Article 3. The State Council shall set up the General Customs Administration which shall exercise unified administration of the customs establishments throughout the country.

The state shall set up customs establishments at ports open to foreign countries and regions and at places which call for concentrated customs operations of supervision and control. The subordination of one customs establishment to another shall not be restricted by administrative divisions.

The customs establishments shall exercise their functions and powers independently in accordance with the law, and shall be responsible to the General Customs Administration.

Article 4. A customs establishment shall exercise the following powers:

(1) to check inward and outward means of transport and examine inward and outward goods and articles; to detain those entering or leaving the territory in violation of this Law or other relevant laws and regulations;

(2) to examine the papers and identifications of persons entering or leaving the territory; to interrogate those suspected of violating this Law or other relevant laws and regulations, and investigate their illegal activities;

(3) to examine and make copies of contracts, invoices, book accounts, bills, records, documents, business letters and cables, audio and video products and other materials related to the inward and outward means of transport, goods and articles; to detain those related to the means of transport, goods and articles entering or leaving the territory in violation of this Law or other relevant laws and regulations;

(4) to search, within a customs surveillance zone and the specified coastal or border area in the vicinity of a customs establishment, means of transport suspected of involvement in smuggling, and storage places suspected of concealing smuggled goods and articles, and to search persons suspected of smuggling. Upon the approval of the director of a customs establishment, a suspected criminal smuggler may be detained and handed over to a judicial organ. Such detention shall not exceed 24 hours and, under special circumstances, may be extended to 48 hours.

The scope of the specified coastal or border area in the vicinity of a customs establishment shall be defined by the General Customs Administration and the public security department under the State Council in conjunction with the relevant provincial people's governments;

(5) Customs officers may chase means of transport or persons defying and escaping from customs supervision and control to places beyond a customs surveillance zone or the specified coastal or border area in the vicinity of a customs establishment and bring them back to be properly dealt with; and

(6) A customs establishment may be provided with arms for the performance of its duties. Rules governing the carrying and use of arms by customs officers shall be drawn up by the General Customs Administration jointly with the public security department under the State Council and reported to the State Council for approval.

Article 5. All inward and outward means of transport, goods and articles shall enter or leave the territory at a place where there is a customs establishment. If, under special circumstances, they have to enter or leave the territory at a place without a customs establishment as a matter of contingency, permission shall be obtained from the State Council or an organ authorized by the State Council, and customs formalities shall be duly completed in accordance with this Law.

Article 6. Unless otherwise provided for, all import and export goods shall be declared and duties on them paid by declaration enterprises registered with the Customs, or by enterprises entitled to engage in import and export business. The persons of these enterprises in charge of the declaration shall be evaluated and approved by the Customs. The customs formalities concerning declaration of inward and outward articles and payment of duties on them may be completed either by the owner or by a person the owner has entrusted to act as his agent. The agent entrusted to complete the declaration formalities shall abide by all provisions of this Law applicable to the owner.

Article 7. Customs personnel shall abide by the laws and regulations, enforce the law impartially, be devoted to their duties and render services in a civilised manner.

No unit or individual may obstruct the Customs from performing its duties according to law.

Where a customs officer meets with resistance while carrying out his duties, the public security organ and the People's Armed Police units performing related tasks shall provide assistance.

CHAPTER II INWARD AND OUTWARD MEANS OF TRANSPORT

Article 8. When a means of transport arrives at or departs from a place where there is a customs establishment, the person in charge of the means of transport shall make a truthful declaration to the Customs, submit the relevant papers for examination and accept customs control and examination.

The inward and outward means of transport staying at a place with a customs establishment shall not depart from it without prior permission by the Customs.

Before an inward or outward means of transport moves from one place with a customs establishment to another place with a customs establishment, it shall comply with the control requirements of the Customs and complete customs formalities; no means of transport shall be allowed to change its course and leave the territory unless it has cleared the Customs.

(For more biz stories, please visit Industry Updates)