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CIRCULAR OF THE STATE ADMINISTRATION OF TAXATION ON AUDIT OF E-INFORMATION OF SPECIAL TAX RECEIPT OF EXPORTS

State Administration of Taxation

Circular of the State Administration of Taxation on Audit of E-information of Special Tax Receipt of Exports

No.1392 [2003] of State Administration of Taxation

December 30, 2003

The departments and offices of all the provinces, autonomous regions, municipalities directly under the Central Government, and cities
under separate State Planning:

In order to ensure the implement of the spirit of the provision promulgated on reform of the export refunds by the State Council and
to increase the efficiency of the audit of export refunds, the State Administration of Taxation decided to, on the base of the improvement
and stable functioning of the second phase of the Gold-tax project, cancel the audit of the E- information of the special tax warrant
of exports and the list of tax payment certificate (hereinafter referred to as special tax receipt )when the competent tax authorities
run the audit procedure of the export refunds of the exports declared at the custom after the date of January 1, 2004(subject to
the date signed in the Bill of Entry) except the items listed in the Article 2 of this circular. We hereby give our notice as follows
regarding the concerning matters:

1.

To the exports declared at the custom after January 1, 2004, the competent tax authorities shall, in the course of running the audit
procedure of export refunds, verify the exports bill of entry, the foreign exchange acceptance verification in export trade, VAT
invoice and other paper documents and the related E-information for export refunds and shall verify the paper documents of the special
tax receipt despite the E-information of it.

2.

To the following listed 3 sorts of exports, the competent export refunds authorities shall verify the special tax receipt declared
by the export units and the E-information from the State Administration of Taxation simultaneously. The procedures of export refunds
shall be run follow the current provisions after the verification.

(1)

The VAT invoice was made before August 1, 2003,

(2)

The VAT invoice or the normal invoice of purchasing is out of the scope of supervision system of the VAT control and audit

(3)

consumption tax deduct

3.

From January 1, 2004, the competent tax authorities charging the offering companies shall not type in the E-information of the special
tax receipt to the goods that the offering units make VAT invoice using VAT anti-forging and control system for the export units.
The competent tax authorities charging the offering companies shall type in and upload the E-information of the special tax receipt
of the VAT invoice, the normal invoice out of the scope of the supervision system of the VAT control and audit and the goods the
shall pay the consumption tax. The State Administration of Taxation will set out the E-information of the mentioned special tax receipt
monthly.

4.

The time of revoking the paper documents of special tax receipt shall be notified separately later.



 
State Administration of Taxation
2003-12-30

 






PROVISIONS OF THE CUSTOMS OF THE PEOPLE’S REPUBLIC OF CHINA ON EXECUTING THE RULES OF ORIGIN FOR TRADE IN GOODS UNDER THE MAINLAND AND HONG KONG CLOSER ECONOMIC PARTNERSHIP ARRANGEMENT

General Administration of Customs

Order of the General Administration of Customs of the People’s Republic of China

No.106

The Provisions of the Customs of the People’s Republic of China on Executing the Rules of Origin for Trade in Goods under the Mainland
and Hong Kong Closer Economic Partnership Arrangement, which were adopted at the executive meeting of this Administration on December
24, 2003, are hereby promulgated and shall come into force on January 1st, 2004.

Mou Xinsheng, the Director of the General Administration

December 30th, 2003

Provisions of the Customs of the People’s Republic of China on Executing the Rules of Origin for Trade in Goods under the Mainland
and Hong Kong Closer Economic Partnership Arrangement

Article 1

With a view to promoting the economic and trade activities between the Mainland and Hong Kong, and to correctly determining the origin
of the imported goods under the Mainland/Hong Kong Closer Economic Partnership Arrangement (hereinafter referred to as CEPA), the
present Provisions are formulated in accordance with the Customs Law and the CEPA.

Article 2

The present Provisions shall be applied to the goods imported from Hong Kong under the CEPA (see the Customs Import and Export Tariff
of the People’s Republic of China for details of the list of goods), however, the goods imported by the way of processing trade shall
be excluded.

Article 3

Where any goods is directly imported from Hong Kong under the CEPA, the origin thereof shall be determined according to the following
principles:

1)

The origin of any goods fully acquired in Hong Kong shall be Hong Kong; and

2)

For any goods not fully acquired in Hong Kong, the origin thereof may, only if such goods have gone through substantial processing
in Hong Kong, be determined as Hong Kong.

Article 4

The term “goods fully acquired in Hong Kong” used in Item 1) of Article 3 as mentioned in the present Provisions refers to:

1)

Mineral products exploited or extracted in Hong Kong;

2)

Plants or their products harvested or collected in Hong Kong;

3)

Live animals borne and bred in Hong Kong;

4)

Products obtained in Hong Kong from the animals mentioned in Item 3) of this Article;

5)

Products obtained from hunting or fishing in Hong Kong;

6)

The aquatic and other marine products obtained from the high sea by ships with the license of Hong Kong and hanging the regional flag
of the Hong Kong Special Administrative Region;

7)

Products obtained from processing of the products mention in Item 6) of this Article on the ships with the license of Hong Kong and
hanging the regional flag of the Hong Kong Special

Administrative Region;

8)

Discarded and waste materials collected in Hong Kong that are generated in the course of consumption in Hong Kong and that are fit
only for recycling of raw materials;

9)

Waste and piecemeal materials that are generated in the course of processing and manufacturing in Hong Kong and that are fit only
for the recycling of raw materials; and

10)

Products obtained from processing of the products mentioned in Items 1) through 9) of this Article.

Article 5

The following processing or disposal, no matter whether they are finished separately or conjunctly, shall all be deemed as minor processing
and disposal, and shall be disregarded in determining whether the goods are fully obtained:

1)

Processing or disposal conducted for the transport or storage of goods;

2)

Processing or disposal conducted for the convenience of the carriage of goods; and

3)

Processing or disposal, such as packing or display, etc., conducted for the sale of goods.

Article 6

The term “substantial processing” as used in Item 2) of Article 3 as mentioned in the present Provisions shall be determined by using
the criterion of “manufacturing or processing operation”, criterion of “change of tax code”, criterion of “ad valorem percentage”,
“other criteria” or “combined criteria”, and the determination shall be carried out in accordance with the Table of Criteria of Origin
for the Goods of Hong Kong Enpost_titled to Preferential Treatment for Trade in Goods. That table shall be part of the present Provisions
and be separately promulgated by the General Administration of Customs (GAC).

1)

“Manufacturing or processing operation” refers to the major operation that endows the goods obtained after the processing with the
basic characteristics. Where such an operation is finished in Hong Kong, the substantial processing shall be deemed as being conducted.

2)

“Change of tax code” refers to that where the materials of which the origins are not Hong Kong are processed within Hong Kong, the
four-figure tax category of the processed products in the Customs Import and Export Tariff of the People’s Republic of China has
changed, and such products are not to go through any production, processing or manufacturing that will change their four-figure tax
category in any country or region other than Hong Kong.

3)

“Ad valorem percentage” refers to the percentage that the total value of the raw materials, components, and labor obtained in Hong
Kong and the product development cost accounts for in the FOB price of the export products. Where such a percentage is 30% or more,
and the final manufacturing or processing operation of the products are finished within Hong Kong, the substantial processing shall
be deemed as being conducted. See the formula below:

(Value of raw materials + value of components + value of labor + cost for product development) / FOB price of the export product ￿￿0%

a.

“Product development” refers to the product development carried out within Hong Kong for producing or processing the relevant export
products. The cost for product development must be in relation to those export products, including the cost for development by the
producer or processor himself/itself, the sum paid for development by the entrusted natural person or legal person within Hong Kong,
and the sum paid for purchase of the design, patent, know-how, trademark right or copyright owned by any natural person or legal
person within Hong Kong. Such cost shall be able to be clearly determined in accordance with the generally accepted accounting standards
and relevant international practice.

b.

Calculation of the “ad valorem percentage” shall be in conformity with the generally accepted accounting standards and relevant international
practice.

4)

“Other criteria” refers to the methods other than the abovementioned criteria of “manufacturing and processing operation”, “change
of tax code” and “ad valorem percentage” for determining the origin that are agreed upon by both authorities of the Mainland and
Hong Kong.

5)

“Combined criteria” refers to two or more aforesaid criterias that are used at the same time in determining the origin.

Article 7

Simple dilution, mixing, packing, bottling, drying, assembling, classification or decoration shall not be deemed as substantial processing.

Any processing or pricing measure aiming to avoid the present Provisions shall not be deemed as substantial processing.

Article 8

The producing areas of the energy, plants, equipment, machines, and tools used in the manufacturing of the goods, as well as the producing
areas of the components not composing the goods and those of the materials of such components, shall be disregarded in determining
the origin of goods.

Article 9

The packages, package materials, and containers, as well as the attachments, spare parts, tools, and introductory materials, which
are declared for import together with the goods and which are included in the Customs Import and Export Tariff of the People’s Republic
of China shall be neglected in determining the origin of the goods.

Article 10

The goods imported under the CEPA shall be transported from Hong Kong directly to the ports of the Mainland.

Article 11

In customs declaration of the goods imported under the CEPA, the consignee shall voluntarily declare to the customs office that zero
tariff shall be applied to those goods, and shall submit the valid certificate of origin that are in conformity with the Procedures
for Issuing and Checking of the Certificate of Origin under the CEPA. Where the certificate of origin is valid upon network check,
the customs office shall handle the import formalities of those goods at zero tariff. Where certificate is invalid upon the check
and verification of the customs, zero tariffs shall not be applied.

Where the customs office of the place where the goods are declared can not make the network check because of certain reasons, and
the consignee require clearance of the goods, the customs office may release those goods after collecting a security of the value
equal to the amount of taxes payable at the rate applied to those goods if they were not under the CEPA, handle the import formalities
and make the customs statistics. The customs office of the place where the goods are declared shall, within 90 days from the day
of clearance of those goods, verify the validity of its certificate of origin, and refund the security or change the security to
tariff in accordance with the result of the verification, and shall modify the customs statistics data correspondingly.

Article 12

Where the customs office of the place where the goods are declared has doubt over the validity of the contents of the certificate
of origin, it may file a request through GAC or a customs office authorized thereby with the Hong Kong Customs for assistance in
the verification. During the period when the Hong Kong customs office makes the verification for confirmation of the relevant certificate
of origin, the customs office of the place where the goods are declared may release those goods after collecting a security of the
value equal to the amount of taxes payable at the rate applied to those goods if they were not under the CEPA, handle the import
formalities and make the customs statistics. After the Hong Kong Customs finishes the verification, the customs office of the place
where the goods are declared shall, in accordance with the result of the verification, immediately refund the security or change
the security to import tariff, and modify the customs statistics data correspondingly.

Article 13

The customs offices have the obligation to keep confidential the materials provided by the consignee of the import goods for verification
of the certificate of origin. Without the consent of the consignee, the customs office may not disclose those materials or use them
for any other purpose, however, except the laws, administrative regulations and relevant judicial interpretations have otherwise
provisions.

Article 14

The customs offices shall handle any act in violation of the present Provisions in accordance with the Customs Law of the People’s
Republic of China and the Implementing Rules of the Customs of the People’s Republic of China for Administrative Punishment. If any
crime has been constituted, the offenders shall be prosecuted for criminal liabilities.

Article 15

The responsibility to interpret the present Provisions shall remain with the GAC.

Article 16

The present Provisions shall come into force on January 1st, 2004.



 
General Administration of Customs
2003-12-30

 






PROVISIONS OF THE CUSTOMS OF THE PEOPLE’S REPUBLIC OF CHINA ON EXECUTING THE RULES OF ORIGIN FOR TRADE IN GOODS UNDER THE MAINLAND/MACAO CLOSER ECONOMIC PARTNERSHIP ARRANGEMENT

Customs General Administration

Order of the Customs General Administration of the People’s Republic of China

No.107

The Provisions of the Customs of the People’s Republic of China on Executing the Rules of Origin for Trade in Goods under the Mainland
and Macao Closer Economic Partnership Arrangement, which were deliberated and adopted at the executive meeting of this Administration
on December 24th, 2003, are hereby promulgated and shall be implemented as of January 1st, 2004.

Mou Xinsheng, Director of the Customs General

December 30th, 2003

Provisions of the Customs of the People’s Republic of China on Executing the Rules of Origin for Trade in Goods under the Mainland/Macao
Closer Economic Partnership Arrangement

Article 1

In order to promote the economic and trade activities between the mainland and Macao, and to correctly determine the origin of the
imported goods under the Mainland and Macao Closer Economic Partnership Arrangement (hereinafter referred to as CEPA), the present
Provisions are formulated in accordance with the Customs Law and the CEPA.

Article 2

The present Provisions shall be applied to the goods imported from Macao under the CEPA (see the Customs Import and Export Tariff
of the People’s Republic of China for details of the list of goods), however, the goods imported by the way of processing trade shall
be excluded.

Article 3

With respect to any goods directly imported from Macao under the CEPA, the origin thereof shall be determined in light of the following
principles:

1)

With regard to any goods fully obtained in Macao, the origin thereof shall be Macao; and

2)

With regard to any goods not fully obtained in Macao, the origin thereof may be determined as Macao only if such goods have gone through
substantial processing in Macao.

Article 4

“Goods fully obtained in Macao” used in Item 1) of Article 3 in the present Provisions refers to:

1)

Mineral products exploited or extracted in Macao;

2)

Plants or their products harvested or collected in Macao;

3)

Live animals borne and bred in Macao;

4)

Products obtained in Macao from the animals mentioned in Item 3) of this Article;

5)

Products obtained from hunting or fishing in Macao;

6)

The aquatic and other marine products obtained from the high sea by ships with the license of Macao and hanging the regional flag
of the Macao Special Administrative Region;

7)

Products obtained from processing of the products mention in Item 6) of this Article on the ships with the license of Macao and hanging
the regional flag of the Macao Special Administrative Region;

8)

Discarded and waste materials collected in Macao that are generated in the course of consumption in Macao and that are fit only for
recycling of raw materials;

9)

Waste and piecemeal materials that are generated in the course of processing and manufacturing in Macao and that are fit only for
the recycling of raw materials; and

10)

Products obtained from processing of the products mentioned in Items 1) through 9) of this Article.

Article 5

The following processing or disposal, no matter whether they are finished separately or conjunctly, shall all be deemed as minor processing
and disposal, and shall be disregarded in determining whether the goods are fully obtained:

1)

Processing or disposal conducted for the transport or storage of goods;

2)

Processing or disposal conducted for the convenience of the carriage of goods; and

3)

Processing or disposal, such as packing or display, etc., conducted for the sale of goods.

Article 6

“Substantial processing” as used in Item 2) of Article 3 in the present Provisions shall be determined by using the criterion of
“manufacturing or processing operation”, criterion of “change of tax code”, criterion of “ad valorem percentage”, “other criteria”
or “combined criteria”, and the determination shall be carried out according to the Table of the Criteria of Origin for the Goods
of Macao Enpost_titled to Preferential Treatment for Trade in Goods. That table shall be part of the present Provisions and be separately
promulgated by the Customs General Administration.

1)

“Manufacturing or processing operation” refers to the major operation that endows the goods obtained after the processing with the
basic characteristics. Where such an operation is finished in Macao, it shall be deemed that substantial processing has been conducted.

2)

“Change of tax code” refers to that where any material of which the origin is not Macao are processed within Macao, the four-figure
tax category of the processed products in the Customs Import and Export Tariff of the People’s Republic of China has changed, and
such products are not to go through any production, processing or manufacturing that will change their four-figure tax category in
any country or region other than Macao.

3)

“Ad valorem percentage” refers to the percentage that the total value of the raw materials, components, and labor obtained in Macao
and the product development cost account for in the FOB price of the export products. In case such a percentage is 30% or more, and
the final manufacturing or processing operation of the products is finished within Macao, substantial processing shall be deemed
as being conducted. See the formula below:

(Value of raw materials + value of components + value of labor + cost for product development) / FOB price of the export product ￿￿0%

a.

“Product development” refers to the product development carried out within Macao for producing or processing the relevant export products.
The cost for product development must be related to those export products, including the cost for development by the producer or
processor himself/itself, the sum paid for development by the entrusted natural person or legal person within Macao, and the sum
paid for purchase of the design, patent, know-how, trademark right or copyright owned by any natural person or legal person within
Macao. Such cost shall be able to be clearly determined in light of the generally accepted accounting standards and relevant international
practice.

b.

Calculation of the “ad valorem percentage” shall be according to the generally accepted accounting standards and relevant international
practice.

4)

“Other criteria” refers to the methods other than the aforesaid criteria of “manufacturing and processing operation”, “change of tax
code” and “ad valorem percentage” for determining the origin that are agreed upon by both authorities of the mainland and Macao.

5)

“Combined criteria” refers to two or more aforesaid criteria that are used at the same time in determining the origin.

Article 7

Simple dilution, mixing, packing, bottling, drying, assembling, classification or decoration shall not be deemed as substantial processing.

Any processing or pricing measure aiming to avoid the present Provisions shall not be deemed as substantial processing.

Article 8

The producing areas of the energy, plants, equipment, machines, and tools used in the manufacturing of the goods, as well as the producing
areas of the components that are not part of the goods and those of the materials of such components, shall be disregarded in determining
the origin of goods.

Article 9

The packages, package materials, and containers, as well as the attachments, spare parts, tools, and introductory materials, that
are declared for import along with the goods and that are included in the Customs Import and Export Tariff of the People’s Republic
of China shall be disregarded in determining the origin of the goods.

Article 10

The goods imported under the CEPA shall be transported from Macao directly to the ports of the mainland.

Where any import goods is transported from Macao to mainland via Hong Kong and where the following conditions are met at the same
time, they shall be deemed as being transported directly from Macao:

1)

Simply due to geographic reasons or transport needs;

2)

Not being traded or consumed in Hong Kong; and

3)

Not going through any processing in Hong Kong other than such processing needed for loading and unloading and for keeping the goods
in good conditions.

Article 11

In customs declaration of the goods imported under the CEPA, the consignee shall voluntarily declare to the customs office that zero
tariff shall be applied to those goods, and shall submit a valid certificate of origin that are in line with the Procedures for Issuing
and Checking of the Certificate of Origin under the CEPA.

With regard to the import goods that are transported to a port of mainland via Hong Kong, the consignee shall, apart from meeting
the provisions of the preceding paragraph, supplement the following documents to the customs office of the place where the goods
are declared:

1)

The through bill of lading issued in Macao;

2)

The invoice of the goods issued by the original producer; and

3)

Relevant certificates conforming to the second paragraph of Article 10 of the present Provisions.

Article 12

Where the certificate of origin is valid upon network check, the customs office shall go through the import formalities of those goods
at zero tariff. Where certificate is invalid upon the check, zero tariff shall not be applicable.

Where the customs office of the place where the goods are declared can not make the network check due to certain reasons, and the
consignee require clearance of the goods, the customs office may release those goods after collecting a security of the value equal
to the amount of taxes payable at the rate applied to those goods if they are not under the CEPA, go through the import formalities
and make the customs statistics. The customs office of the place where the goods are declared shall, within 90 days as of the day
of clearance of those goods, verify the validity of its certificate of origin, and refund the security or change the security to
tariff in light of the result of the verification, and shall modify the customs statistics data correspondingly.

Article 13

Where the customs office of the place where the goods are declared has doubted over the validity of the contents of the certificate
of origin, it may put forward a request through Customs General Administration or a customs office authorized thereof to the Macao
Customs or Macao Economic Services for assistance in the verification. During the period when the Macao Customs or Macao Economic
Services makes the verification for confirmation of the relevant certificate of origin, the customs office of the place where the
goods are declared may release those goods after collecting a security of the value equal to the amount of taxes payable at the rate
applied to those goods if they are not under the CEPA, go through the import formalities and make the customs statistics. After the
Macao Customs or Macao Economic Services finishes the verification, the customs office of the place where the goods are declared
shall, in light of the result of the verification, immediately refund the security or change the security to import tariff, and modify
the customs statistics data correspondingly.

Article 14

The customs offices have the obligation to keep confidential of the materials provided by the consignee of the import goods for verifying
the certificate of origin. Without the consent of the consignee, the customs offices may not disclose those materials or use them
for any other purpose, but apart from the otherwise provisions prescribed in the laws, administrative regulations and relevant judicial
interpretations.

Article 15

The customs offices shall deal with any act in violation of the present Provisions in accordance with the Customs Law of the People’s
Republic of China and the Implementing Rules of the Customs of the People’s Republic of China for Administrative Punishment. If any
crime has been constituted, the criminal liabilities shall be prosecuted for in jure.

Article 16

The responsibility to interpret the present Provisions shall remain with the Customs General Administration.

Article 17

The present Provisions shall be implemented on January 1st, 2004.



 
Customs General Administration
2003-12-30

 






PROVISIONS OF THE CUSTOMS OF THE PEOPLE’S REPUBLIC OF CHINA ON IMPLEMENTING THE RULES OF ORIGIN FOR THE CHINA-ASEAN FREE TRADE ZONE UNDER THE FRAMEWORK AGREEMENT ON COMPREHENSIVE ECONOMIC COOPERATION BETWEEN CHINA AND ASEAN

Customs General Administration

Decree of the Customs General Administration of the People’s Republic of China

No.108

The Provisions of the Customs of the People’s Republic of China on Implementing the Rules of Origin for the China-ASEAN Free Trade
Zone under the Framework Agreement on Comprehensive Economic Cooperation between China and ASEAN was deliberated and adopted at the
executive meeting of this Administration on December 24th, 3003. It is hereby promulgated and shall be implemented on January 1st,
2004.

Mou Xinsheng, Director of the Customs General Administration

December 30th, 2003

Provisions of the Customs of the People’s Republic of China on Implementing the Rules of Origin for the China-ASEAN Free Trade Zone
under the Framework Agreement on Comprehensive Economic Cooperation between China and ASEAN

Article 1

With a view to promoting the economic and trade activities between China and ASEAN, and to correctly determining the origin of the
goods imported under the Framework Agreement on Comprehensive Economic Cooperation between China and ASEAN (hereinafter referred
to as the Agreement), the present Provisions are formulated in accordance with the Customs Law and the Agreement.

Article 2

The present Provisions shall be applied to the goods imported from ASEAN countries under the Agreement (see the Customs Import and
Export Tariff of the People’s Republic of China for details of the list of goods), however, the goods imported by way of processing
trade shall be excluded.

Article 3

The following import goods directly transported from an ASEAN country shall be regarded as goods of ASEAN origin, and the China-ASEAN
conventional tariff shall be applicable:

1)

Products fully obtained or produced in an ASEAN country; and

2)

Products that are not fully obtained or produced but that are consistent with Articles 5 and 6 of the present Provisions.

Article 4

The term “products fully obtained or produced in an ASEAN country” as mentioned in Item 1) of Article 3 of the present Provisions
refers to:

1)

Plants and their products harvested, picked or collected in that ASEAN country;

2)

Live animals borne and bred in that ASEAN country;

3)

Products that are obtained from the animals mentioned in Item 2) of this Article in that ASEAN country and that have undergone no
further processing;

4)

Products obtained from hunting, trapping, fishing, aqua breeding, collecting, or catching in that ASEAN country;

5)

Minerals or other natural materials other than those above-mentioned in Items 1) through 4) that are exploited or extracted from the
territory, territorial waters, seabed, or seabed subsoil of that ASEAN country;

6)

Products that are obtained from the waters, seabed or seabed subsoil outside the territorial waters of that ASEAN country, provided
that the said country has the right to develop the above-mentioned waters, seabed and seabed subsoil pursuant to the provisions of
the international law;

7)

Aquatic and other marine products obtained from the high sea by ships registered with that ASEAN country or hanging the flag of that
country;

8)

Products obtained from processing or manufacturing of the products above-mentioned in Item 7) on the processing ships registered with
that ASEAN country or hanging the flag of that country;

9)

Discarded or waste materials collected in that ASEAN country that can neither be used for their original purpose nor be restored or
repaired, and that are only fit for discarding or recovery of raw materials, or for recycling purpose; and

10)

Products obtained from processing of the products listed above only in Items 1) through 9) in that ASEAN country.

Article 5

The “products that are not fully obtained or produced” as mentioned in Item 2) of Article 3 of the present Provisions shall meet
either of the following conditions:

1)

Products of which the origin is of any ASEAN country and the contents of China-ASEAN Free Trade Zone (hereinafter referred to as the
Free Trade Zone) shall be no less that 40%; or

2)

The total value of the materials, spare parts, or products not originating from the Free Trade Zone shall not exceed 60% of the FOB
price of the products produced or obtained, and the last production operation is finished within an ASEAN country.

Article 6

The term “contents of China-ASEAN Free Trade Zone” as mentioned in Article 5 of the present Provisions is illustrated by the following
formula:

100% – (value of the materials not originating from the Free Trade Zone + value of the materials of unidentified origin) / FOB price
￿￿00%￿￿0%

The “value of the materials not originated in the Free Trade Zone origin or of those of unidentified origin” used in the formula refers
to the CIF price of the materials, or the price, as determined in the first place, paid for the materials of unidentified origin
within the ASEAN country in which the manufacturing or processing is carried out.

Article 7

Unless there are otherwise provisions, where the products of origin of an ASEAN country that meet the requirement of Article 3 of
the present Provisions are manufactured or processed into other products within any ASEAN country, and the accumulated contents from
the member states of the Free Trade Zone in those products are no less than 40%, the origin of those finished products shall be the
ASEAN country in which the manufacturing or processing is carried out, and the China ASEAN conventional tariff shall be applied to
such products.

Article 8

Where the products processed or manufactured in an ASEAN country meet the standards of special origin of products under the Rules
of Origin for the China-ASEAN Free Trade Zone, the processing or manufacturing country shall be the country of origin of those products.
The aforesaid standards are a part of the present Provisions and will be promulgated by the General Administration of Customs (GAC)
separately.

Article 9

The following processing or disposal, no matter whether they are finished separately or conjunctly, shall all be regarded as minor
processing and disposal, and shall be disregarded in determining whether the goods are fully obtained:

1)

Processing or disposal conducted for the transport or storage of the goods to keep them in good conditions;

2)

Processing or disposal conducted for the convenience of the shipping of the goods; and

3)

Processing or disposal, such as packing or display, etc., conducted for the sale of the goods.

Article 10

The term “directly transported” as mentioned in Article 3 of the present Provisions refers to that the goods imported under the Agreement
are transported from an ASEAN country directly to China, or are transported from an ASEAN country to China via any other member state
of the Free Trade Zone, but have not passed any non-member state of the Free Trade Zone on the way.

Where the import goods are transported to China via any non-member state of the Free Trade Zone (including the change of vehicle or
temporary storage) and meet the following conditions simultaneously, they shall be regarded as being directly transported from the
ASEAN country:

1)

Simply due to geographic reasons or transport needs;

2)

Not being traded or consumed when passing through the above-mentioned country; and

3)

Not going through any processing in the above-mentioned country other than such processing that is needed for loading and unloading
and for keeping the goods in good conditions.

Article 11

Where the packages, package materials, and containers, as well as the accessories, spare parts, tools, and introductive materials
shall be declared for import together with the goods, and are categorized together with those goods in the Regulations of Import
and Export Customs Tariff of the People’s Republic of China, they shall be ignored in the determination of the origin of the goods.

Article 12

Unless there are otherwise provisions, the origins of the energy, fuel, plants, equipment, machines, and tools used in the manufacturing
of the products, as well as the origins of the materials that are not contents or components of the products, shall be disregarded
in determining the origin of the products.

Article 13

When declaring of the goods imported under the Agreement, the consignee shall voluntarily declare to the customs that the China-ASEAN
conventional tariff shall be applicable to those goods, and shall submit the certificate of origin (including the original and the
third page) issued by the governmental agency designated by the exporting ASEAN country.

Where the import goods are transported via any non-member state of the Free Trade Zone, apart from complying with the preceding paragraph,
the consignee of the import goods shall also supplement the following documents to the customs:

1)

The through bill of lading issued by the exporting ASEAN country;

2)

Duplicate of the original business invoice of the goods; and

3)

The relevant certificates in conformity with Paragraph 2 of Article 10 hereof.

If the certificate of origin is found, upon check by the customs where the declaration is made, to be consistent with the Procedures
for Issuing and Checking of the Certificate of Origin, and if the contents of the certificate are in conformity with the import goods,
that certificate shall be regarded as valid.

Article 14

If the FOB price of any import goods of the origin of an ASEAN country is less than 200 US dollars, there is no need to submit the
certificate of origin.

Article 15

The certificate of origin of the goods imported from of an ASEAN country shall, within 4 months as of the day of issuing by the relevant
government agency of the ASEAN country, be submitted to the customs within China where the customs declaration is made.

Where the import goods are transported through any non-member state of the Free Trade Zone according to Paragraph 2 of Article 10
of the present Provisions, the time limit for submission of the certificate of origin of those goods will be extended to 6 months.

Where the consignee of the import goods fails to submit the certificate of origin within the above-mentioned time limit because of
force majeure or any other justified reasons, the customs where the declaration is made may accept the certificate upon examination.

Where the import goods have been actually imported within the period prescribed in Paragraphs 1 and 2 of this Article, the time limit
for submission of the certificate of origin may not be restricted by the provisions of Paragraphs 1 and 2.

Article 16

Where the customs where the declaration is made has any doubt over the validity of the contents of the certificate of origin, it may
request the relevant government agency of the ASEAN country to verify the certificate of origin, and the agency receiving the request
shall make a reply within 6 months. During the verification period before any result comes out, the customs where the declaration
is made may release the goods after collecting a cash deposit of the same value as the amount of the taxes payable at the rate applied
to those goods as if not under the Agreement, handle the import formalities and do the customs statistics. After the verification
is finished, the customs where the declaration is made shall, in accordance with the result of the verification, immediately refund
the cash deposit or change the cash deposit into import tariff, and modify the customs statistics data correspondingly.

Where the import goods are those prohibited or restricted by the State from importing, or where any suspect of illegal offence is
involved, the customs may not release the goods before the verification of the certificate of origin is finished.

Article 17

The customs shall keep confidential the materials exchanged with the ASEAN countries for verification of the certificates of origin,
other than the customs import and export trade statistic data.

Article 18

Where, after the goods imported from an ASEAN country are declared for customs clearance but before the customs grants the clearance,
the destination of those goods is changed and the goods need to be transported to another country, the consignee shall file a written
application with the customs.

The customs shall indicate and confirm the change of the destination of the goods on the certificate of origin before returning the
original certificate to the consignee of the import goods and returning the third page of the certificate to the issuing agency.

Article 19

Where the products with the origin of any ASEAN country are transported to another ASEAN country or China for exhibition, and are
sold to China during or after the exhibition, and if the following conditions are met simultaneously, the China-ASEAN conventional
tariff may be applied:

1)

The exporter has transported the products from the exporting ASEAN country to the ASEAN country where the exhibition is held and the
goods have actually been exhibited in that country;

2)

The exporter has transferred the goods to the consignee within China; and

3)

The conditions of the products that are sold into China during or after the exhibition are consistent with their conditions at the
exhibition.

Where the exhibition products meeting the preceding paragraph are declared for import, the consignee shall submit to the customs the
certificate of origin of the exporting ASEAN country, and shall simultaneously provide the certificate specifying the name and address
of the exhibition issued by the relevant government agency of the country where the exhibition is held, as well as the relevant certificates
meeting Paragraph 2 of Article 10 of the present Provisions.

The term “exhibition” as used in this Article shall include the business, agricultural, and handcraft industry exhibitions or trade
fairs especially held for the sale of foreign products, as well as the similar exhibitions or displays held in shops and business
places. The products shall be subject to customs control during the exhibition.

Article 20

The following terms as used in the present Provisions refer to:

1)

The term “ASEAN countries” refers to the other member states signed the Agreement jointly with China, namely Brunei Darussalam, Kingdom
of Cambodia, the Republic of Indonesia, the Lao People’s Democratic Republic, Malaysia, the Union of Burma, the Republic of the Philippines,
the Republic of Singapore, the Kingdom of Thailand, and the Socialist Republic of Viet Nam.

2)

The term “Materials” shall include constituents, accessories, components, semi-assembled parts, and the products that actually constitute
a part of another product or are used in the production of another product.

3)

The term “Goods of origin” refers to the products that are determined to be in conformity with the conditions for origin in accordance
with Article 3 .

4)

The term “Production” refers to the method of obtaining a product, including planting, exploiting, harvesting, breeding, reproducing,
extracting, collecting, gathering, seizing, fishing, trapping, hunting, manufacturing, producing, processing and assembling.

5)

The term “Plants” refers to all the plants such as fruits, flowers, vegetables, trees, algae, epiphytes, and live plants, etc.

6)

The term “Animals” refers to all the animals such as mammals, birds, fishes, carapaces, mollusks, reptiles, bacteria, and virus, etc.

7)

The term “Discarded or waste materials” refers to the all the discarded and waste machines, packages, and materials, etc., that are
generated in the course of processing, manufacturing and consuming in industrial, mining, agricultural, construction, smelting, and
sewage disposal industries.

8)

The term “Standards of the special origin of products” refers to the rules of change of tax code of the prescribed materials, specific
processing or manufacturing operation of those materials, satisfaction of a certain standard of ad valorem percentage, or a combination
of the above-mentioned standards.

Article 21

The customs shall deal with any act in violation of the present Provisions in accordance with the Customs Law of the People’s Republic
of China and the Detailed Rules for the Implementation of the Administrative Punishment for the Customs Law of the People’s Republic
of China. If a crime has been constituted, the offender shall be subject to criminal liabilities according to law.

Article 22

The responsibility to interpret the present Provisions shall remain with the Customs General Administration.

Article 23

The present Provisions shall be implemented as of January 1st, 2004.



 
Customs General Administration
2003-12-30

 






CONSTITUTION ACT, 1982 – page 22

NOTES (1) The enacting clause was repealed by the Statute Law Revision Act, 1893, 56-57 Vict., c. 14 (U.K.). It read as...

CONSTITUTION ACT, 1982 – page 21

CONSTITUTION ACT, 1982 – page 20

CONSTITUTION ACT, 1982 – page 19

CONSTITUTION ACT, 1982 – page 18

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