Article 26. Where underpayment of tariffs is discovered after
payment has already been made the Customs shall require the consignor,
consignee or their agents to pay up the difference within one
year of the initial payment or the date when the cargoes are
released. The Customs may require that payment be made within three years where
the consignor, consignee or agent is to be responsible for the underpayment as a
result of violation of Customs regulations.
CHAPTER 5 EXAMINATION AND APPROVAL PROCEDURES RELATING TO THE EXEMPTION AND
REDUCTION OF CUSTOMS DUTIES
Article 27. Exemption from Customs duties may be granted after examination by
the Customs concerning the following goods: 1) where the Customs duty of goods
per certificate or invoice is no more than Rmb 10. 2) articles
that are for advertising purposes or to be used as samples and therefore of no
commercial value; 3) materials or supplies donated by foreign governments or
international organizations; 4) fuel, materials, food and drinks carried by
vehicles and other means of transportation entering and leaving the territory,
which are to be used on the same journey in and out of the territory. Import
duties may be exempted for goods which, for some reasons, are returned to China
after examination by the Customs, and which are declared to the Customs by their
original consignor or his agent for importation for which the original export
certificates have been submitted to the Customs. However, the export duties
already paid will not be refunded. If import goods need to be returned overseas
for some reason, the original consignees of the goods or their agents shall
declare exit and provide the original import certificates. Such goods, after
examination by the Customs, will be exempted from export tariffs. But, the
import tariffs already paid will not be refunded.
Article 28. The Customs may exercise discretion in light
of the circumstances concerning exemption and reduction of duties on import
goods involved in any of the following cases: 1) goods that incur damages
or losses during transportation outside the country or while unloading;
2) goods that incur damages or losses as a result of force majeure after
unloading and before Customs release; 3) goods which at Customs inspection, are
already found to have been broken, rotten or damaged and are not in any way a
case of negligence in storage.
Article 29. For those goods and articles which are specified in international
treaties which the People's Republic of China is a signatory or participant
regarding their tariff exemption or reduction, the (Chinese) Customs shall carry
out the said treaty provisions on their tariff exemption or reduction.
Article 30. Samples, exhibition articles, project machinery and engineering
vehicles and vessels, instruments and equipment for
installation, television sets or film shooting equipment, containers and stage
property and clothes, which are permitted by
the Customs to be imported temporarily or exported temporarily and intended to
be re-exported or re-imported within six months, shall be exempted from Customs
duties temporarily, provided that the consignor or consignee
has paid to the Customs a deposit the sum of which is equivalent to that of
Customs duties normally due or provided a guarantee is furnished by the
consignor or consignee. The six-month period may be extended by the Customs in
light of the prevailing circumstances and at its discretion. Project machinery,
engineering vehicles and vessels temporarily imported whose period of use, after
examination by the Customs, is extended shall be charged of import tariffs by
the Customs in terms of the time of use in the
extended period. The concrete measures shall be separately formulated by the
Customs.
Article 31. In the areas of export processing, assembling or manufacturing
for foreign clients, exemption from import duties shall be
granted by the Customs on the basis of the actual amount of products so
processed, assembled or manufactured for export from the raw and processed
materials, auxiliary materials, parts and components and packing materials
imported for the purpose.
Article 32. A separate set of measures relating to the
imposition and exemption of Customs duties on import and export of
unrequited goods that are of a compensatory nature shall be formulated by the
Customs General Administration.
Article 33. Goods imported and exported by special economic zones and other
specially designated regions and goods imported and exported by such specially
designated enterprises as Sino-foreign joint venture enterprises, Sino-foreign
cooperative production enterprises and wholly foreign-owned
enterprises as well as those goods that are legally allowed to enjoy
favorable treatment of exemption or reduction of Customs duties shall be granted
exemption or reduction according to the relevant state provisions.
Article 34. When applying for temporary tariff reduction or exemption the
consignor or consignee or their agents should do so before importing or
exporting the goods, by submitting the application in
writing to the local Customs along with the necessary documentation and data. It
shall be transmitted to the Customs General Administration after examination by
the local Customs for re-examination and approval or joint examination and
approval by the Customs General Administration and the Ministry of Finance
according to provisions by the State Council.
Article 35. If import goods, which had been granted special exemption or
reduction of tariffs according to laws and regulations, are sold,
transferred or used for other purposes with
the permission of Customs in the period of Customs supervision and
control, import duty shall be imposed according to the depreciated
value appraised in terms of the time of use. The period of supervision and
control shall be formulated separately by the Customs.
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