1990

CUSTOMS NOTICE TO FOREIGN EXPERTS EMPLOYED TO WORK IN CHINA GOVERNING CUSTOMS PROCEDURES FOR THEIR ENTRY AND EXIT

INTERIM MEASURES FOR THE ADMINISTRATION OF PETTY TRADE IN THE BORDER AREAS

Category  FOREIGN TRADE Organ of Promulgation  The State Council Status of Effect  Invalidated
Date of Promulgation  1984-12-20 Effective Date  1984-12-20 Date of Invalidation  1994-05-16


Interim Measures for the Administration of Petty Trade in the Border Areas



(Approved by the State Council on December 15, 1984 and promulgated by

the Ministry of Foreign Economic Relations and Trade on December 20, 1984)
(Editor’s Note: The Measures have been annulled by Decision of the State
Council Repealing Some Administrative Regulation Promulgated Prior to the End
of 1993 promulgated by Decrce No. 154 of the State Council on May 16, 1994)

    1. These Measures are formulated to invigorate economy in the border areas,
to satisfy to a larger extent the needs of the inhabitants in the border areas
in their production and life, to promote the contacts and communication
between the border inhabitants of two neighbouring countries, and to develop
their good neighbourly relations.

    2. The petty trade in the border areas, as mentioned in these Measures,
refers to the petty trade carried out in the border towns of China, a between
the departments or enterprises designated by the people’s governments of
provinces or autonomous regions and the border towns on the other side, as well
as to the mutual market trade between the border inhabitants of the two
neighbouring countries.

    3. The petty trade in the border areas shall be carried out at the ports
and trading points in the border areas as agreed on by the two sides through
consultation.

    4. The petty trade in the border areas shall be subject to the
administration by the relevant people’s governments of the provinces and
autonomous regions. Matters involving the opening of ports, external relations,
security, frontier defence, the Customs, banking, commodity inspection, animal
and plant quarantine, and administration for industry and commerce shall be
handled by relevant competent departments under the State Council on the
proposal of the people’s governments of the provinces or autonomous regions.

    5. The petty trade in the border areas shall be conducted in accordance
with the following principles: finding the sources of goods and the markets by
themselves; holding business talks by sellers and buyers of their own accord;
acquiring balance of accounts in their own ways, and assuming sole
responsibility for their profits and losses.

    6. With respect to the petty trade carried out between the border towns,
the Customs duty, product tax and value added tax shall, in accordance with the
tax regulations, be levied.

    7. The mutual market trade between the border inhabitants shall be carried
out within the scope of a definite quota. The specific quota shall be
prescribed by the people’s governments of the provinces or autonomous regions
concerned, and submitted to the Ministry of Foreig Economic Relations and Trade
and the General Administration of Customs for the record.

    8. The commodities involved in the mutual market trade between the border
inhabitants may be exempted from the Customs duty, product tax and value added
tax if they do not exceed the quota.

    9. All contraband goods are forbidden to be imported or exported.

    10. With respect to the import and export commodities subject to the
licences, the Ministry of Foreign Economic Relations and Trade shall authorize
the department (commission, bureau) of foreign economic relations and trade
under the province or autonomous region concerned to handle the matter of
examiation and approval.

    11. The department (commission, bureau) of foreign economic relations and
trade under the provinces or autonomous regions shall be responsible for
submitting the reports on the annual operational conditions and statistics of
the petty trade in the border areas to the Ministry of Foreign Economic
Relations and Trade for the record.

    12. The petty trade in the border areas shall strictly comply with the laws
and administrative regulations of the State. The people’s governments of
various provinces and autonomous regions shall, in the light of the local
conditions, formulate practicable specific measures to facilitate the
development of the petty trade in the border areas. ?







DETAILED IMPLEMENTING RULES TO THE REGULATIONS ON THE INSPECTION OF IMPORT AND EXPORT COMMODITIES OF THE PEOPLE’S REPUBLIC OF CHINA

CIRCULAR OF THE GENERAL OFFICE OF THE STATE COUNCIL CONCERNING THE APPROVAL AND TRANSMISSION OF SEVERAL PROVISIONS BY THE LEADING GROUP FOR PORT AFFAIRS ON STRENGTHENING THE WORK OF UNCLOGGING HARBOURS

Category  PORT ADMINISTRATION Organ of Promulgation  The State Council Status of Effect  In Force
Date of Promulgation  1984-12-19 Effective Date  1985-02-01  


Circular of the General Office of the State Council Concerning the Approval and Transmission of Several Provisions by the Leading
Group for Port Affairs on Strengthening the Work of Unclogging Harbours

The Circular
SEVERAL PROVISIONS ON STRENGTHENING THE WORK OF UNCLOGGING HARBOURS

(December 19, 1984)

The Circular

    Several Provisions on Strengthening the Work of Unclogging Harbours
formulated by the Leading Group for Port Affairs under the State Council has
been approved by the State Council. It is hereby transmitted to you for
implementation.
SEVERAL PROVISIONS ON STRENGTHENING THE WORK OF UNCLOGGING HARBOURS

    With the all-round deepening of the reform of the economic structure and
the further implementation of the opening policy, there will be further growth
in our domestic and foreign trade. However, it is not possible to improve the
comprehensive capacity of passage of our harbours fundamentally in the near
future. Sharp contradiction between freight volume and transport capacity will
remain for a fairly long time in the foreseeable future. In order to keep the
harbours unblocked, raise the rate of utilization of vehicle, vessels and
warehouses, speed up the flow of goods, and improve social and economic
results, it is necessary to strengthen the work of unclogging harbours. For
this purpose, provisions are formulated as follows:

    1. The policy of planned transport must be persisted in. The method of
“two-level balance and centralized administration” shall be adopted in
formulating transport plans for import and export of foreign trade goods. The
transport plans, which are issued after going through the procedure of
comprehensive balance, must be strictly implemented by all the departments.

    (l) All the foreign trade companies and industrial trade corporations
shall deliver goods in a balanced way. All the shipping companies shall
dispatch their ships in a balanced way so as to prevent the ships from
crowding into the harbours.

    (2) In arranging loading and unloading foreign trade vessels, the harbours
shall strictly observe the principle of planned ones first and those outside
the plans next, and basically according to the order of their arrival to the
harbours.

    (3) The railway, highway and water transport departments shall take an
active part in the work of unclogging harbours. Railway departments shall, in
dispatching wagons, loading and transporting goods, give priority to the
materials from the clogged harbours, according to the monthly balance plan
made jointly by the Ministry of Communications, the Ministry of Railways and
the Ministry of Foreign Economic Relations and Trade. Except when transport
is suspended as a result of natural disasters and major accidents and when
railways are seriously blocked, the loading and transport of the materials
from the clogged harbours may not, in principle, be stopped or restricted.

    (4) Departments in charge of materials and goods (or their agent units)
shall provide direction of transportation for the arrived materials and take
practical measures for receiving and storing the materials according to the
time set by transport departments. They shall unload the materials and goods
from the wagons during their stay at the stations and must not use the wagons
as storehouses. The relevant departments shall notify departments in charge of
materials and goods, timely, of the delivery and arrival vessels.

    (5) If vessels arrive at harbours without having obtained the approval of
the monthly balance meeting held jointly by the Ministry of Communications,
the Ministry of Railways and the Ministry of Foreign Economic Relations and
Trade, local people’s governments shall impose a fine of one yuan for every
ton of goods on the responsible units and the unloading of such vessels shall
be arranged according to relevant stipulations. Fines shall not be imposed on
the vessels which have sent the plans as demanded but have not been included
in the plans due to inadequacy of capacity of the barbours and railways.
However, for large amounts of materials which have crowded into harbours, if
the amount is 15% more than the monthly average of the yearly plan, a fine of
0.5 yuan for every ton of goods shall be imposed on the responsible units.
Local people’s governments shall use 50% to 70% of the income derived from
fines in awarding the relevant units (including departments for harbour
inspection and examination) and individuals at the harbour that have made
achievements in unclogging the harbours. This shall be organized and
implemented by the offices in charge of port affairs in the provinces
(regions and municipalities).

    (6) For those materials which have arrived at harbours to be transferred
through railways to certain places and which do not belong to reasonable flow,
if the amount is within the limit (less than 500 ton for sundry goods, less
than 1,000 ton for a large bulk of materials), railway departments shall
undertake their transport as reasonable flow. If the amount exceeds the limit,
the materials shall be unloaded at the harbours.

    (7) Leading Group for Port Affairs of the State Council and the offices in
charge of port affairs in the provinces (regions and municipalities) shall,
together with the relevant competent departments, conduct supervision and
examination over such links of transportation as organizing sources of goods,
ordering goods, delivery of goods, dispatch of vessels, loading and unloading
at harbours and dispersion in transport, and shall handle and arbitrate major
problems which arise in planned transport.

    2. In order to maintain normal production order at harbours, bring into
full play the initiative of all the parties and raise the rate of turn-rounds
of vehicle, vessels and goods, the relevant units at the ports shall, in the
spirit of the current reform of the economic structure, sign bilateral or
multilateral economic agreements, define each party’s responsibilities and
clearly observe the policy of awards and penalties. The content of the
agreements may include provisions concerning period of detention for vessels,
number of railway wagons to be loaded, the time freight trains may be allowed
to stay at harbours, awards to those who go beyond the plans in unloading
goods from vessels and loading wagons and trucks, etc. – which, as economic
restrictive clauses for the parties, shall be implemented under the aegis of
the local offices for port affairs.

    3. Except bulk cargo and those which can be transported through special
railway lines, the materials destined for places not far from harbours shall
in principle be transported by trucks. Highway transportation enterprises
shall try every means to improve business management, lower the cost and
freight rates, and apply the business policies of good service, and small
profits but quick turnover. The distance limit within which the materials and
goods from harbours must be transported by trucks shall be set by local
people’s government of the province (region or municipality) in accordance
with the local conditions. Except for special circumstances, the materials
and goods for places within the prescribed distance limit shall not be
transported through railways.

    4. The harbours from which materials and goods can be transported by water
shall make full use of vessels. In case the provinces, autonomous regions and
municipalities directly under the Central Government are unable to transport
timely their materials and goods from clogged harbours, local offices for
port affairs and the relevant departments shall organize transport for them,
and the harbours of arrival sha11 treat such vessels as those within the plan
and arrange unloading for them.

    5. In case a harbour is clogged or in other special circumstances, the
Ministry of Communications, the Ministry of Railways and the Ministry of
Foreign Economic Relations and Trade as well as the competent departments of
the relevant units in charge of materials and goods, or the Leading Group for
Port Affairs of the State Council, may decide to change the harbour of arrival
for foreign trade vessels. The ports of arrival for those vessels and
departments for transportation shall treat them equally as those within their
plans and, with the close cooperation of the owners of the cargo, adjust the
direction of transportation for the cargo and take measures for receiving and
storing the cargo. The extra shipping expenses shall be borne by the shipping
companies and the extra domestic freight, by the owners. If agreements have
been signed, the agreements shall apply.

    6. Except for small quantities, imported grade-1 dangerous goods shall be,
in pinciple, transported in containers. Highly dangerous goods shall be, in
principle, transloaded directly without touching the ground. If it is
necessary to move them onto storage ground in extraordinary circumstances, the
owners must take delivery of the goods and leave the ground within a time
limit.

    7. If economic agreements have not yet been signed in accordance with
Article 2 of these Provisions, the relevant departments shall handle the cases
according to the following measures:

    (1) In case the imported materials which have been unloaded onto harbour
storage grounds remain at the harbour for more than 10 days (the 4 days of
reasonable storage period is not included, the same below) because the owners
or their agents fail to provide reasonable directions of transportation and
adopt practicable measures for receiving and storing the goods, an additional
storage fee, which is 50% of the set rate, shall be collected from the owners
or their agents starting from the first day that is overdue; an additional
storage fee, which is 100% of the set rate, shall be collected if the
materials are overdue for more than 20 days. If the owners cannot take
delivery of their goods in time because of the harbour’s responsibity, the
harbour authority shall exempt them from additional storage fees and pay the
owners the expenses for hiring the vehicle and vessels which have come in
vain for the goods. If the owners cannot take delivery of the goods which
are within the monthly balance plans because of the railway department’s
responsibity, the railway department shall bear the additional storage fees.
If goods cannot be taken delivery of in time due to force majeure or other
special reasons, additional storage fees shall be exempted. Local offices for
port affairs shall mediate and arbitrate any disputes over issues of
responsibilities.

    (2) In case any unloaded and stored goods remain on the storage grounds of
a clogged harbour for more than 14 days, and the owner has already been
urged to take delivery of the goods, the local office for port affairs may
decide to move the goods to a warehouse or move them outside the harbour area.
The owner shall bear all the expenses arising therefrom. The choice of the
warehouses shall facilitate transportation of goods from the clogged harbour.
When the owners apply for train wagons for the transportation of the goods in
the warehouses, railway departments shall treat their goods as materials from
clogged harbours.

    (3) In case imported goods remain at a harbour for more than two months
and the owner has not taken delivery of the goods although he has been urged
to do so, they shall be treated as goods which cannot be delivered. Those
goods which have gone through Customs declaration shall be confiscated by the
relevant department at the harbour according to the instructions of the local
people’s government. Those goods which have not gone through Customs
declaration shall be confiscated by the Customs. The income from the sale of
the confiscated goods shall be turned over to the State treasury according to
the relevant stipulations. If it is proved that the goods have been wrongly
confiscated and sold, the party responsible for the error shall pay for the
economic loss of the owner.

    (4) When a harbour is seriously blocked, in order to unclog it as soon as
possible, upon the suggestion of the local office for port affairs and the
approval of the Leading Group for Port Affairs of the State Council, some
materials which have remained at the harbour for less than two months may also
be subjected to necessary treatment.

    8. The provinces, autonomous regions and municipalities directly under
the Central Government, where there are harbours, shall, in accordance with
these Provisions, formulate rules for implementing the work of unclogging
harbours in the light of their respective conditions and report to the Leading
Group for Port Affairs of the State Council for the record. Local offices for
port affairs shall be responsible for the implementation of the rules.

    9. These Provisions shall be trial implemented as of February 1, 1985. If
any existing provisions in this regard conflict with these Provisions, these
Provisions shall prevail.






REGULATIONS OF THE CUSTOMS OF THE PEOPLE’S REPUBLIC OF CHINA CONCERNING THE CONTROL OF IMPORT AND EXPORT OF ARTICLES BY RESIDENT OFFICES OF FOREIGN ENTERPRISES AND PRESSES, AND THEIR RESIDENT STAFF IN CHINA

REGULATIONS OF THE PEOPLE’S REPUBLIC OF CHINA ON PRODUCT TAX (DRAFT)

REGULATIONS FOR THE ADMINISTRATION OF LAND USE IN THE XIAMEN SPECIAL ECONOMIC ZONE

Regulations for the Administration of Land Use in the Xiamen Special Economic Zone

    

(Effective Date 1984.07.14)

   Article 1. The present regulations are formulated in accordance with the relevant laws and decrees of the People’s Republic of China.

   Article 2. Land, seabeaches, waters and resources within the Xiamen Special Economic Zone (SEZ) are all placed under the unified planning and
administration of the Xiamen City People’s Government.

   Article 3. All the enterprises must observe the overall construction program of the SEZ in the use of land, and the construction projects and
their overall distribution that have been approved must not be changed without authorization.

   Article 4. A SEZ enterprise, when in need of the use of land, should apply with the Xiamen Urban and Rural Construction Commission by producing
a duplicate each of the approval document and the contract of the investment project, and after being checked, it will receive a
certificate for, and have the right to, the use of the land applied for.

   Article 5. Counting from the day on which the land use certificate is received by the SEZ enterprise, the said enterprise must submit the blueprints
of the overall design and construction plan for the project within nine months, and construction should be started within one year,
and completed according to schedule. The land use certificate shall be revoked for those who delay the project’s construction without
a valid reason and the land use fee already paid shall not be reimbursed. The enterprise concerned may apply for the extension of
the construction period with the relevant approval department if it can justify itself of the reason(s) for the delay.

   Article 6. The land use period shall be determined in accordance with the project undertaken and its actual needs. The longest duration for
any individual contract signed, depending on what trades or industries it belongs to, is as follows:

(1) 40 years for industrial and communications projects, and public utilities;

(2) 20 years for commercial enterprises and service trades;

(3) 30 years for financial institutions and tourist projects;

(4) 50 years for property projects;

(5) 60 years for science, technology, education, culture and public health projects; and

(6) 30 years for animal husbandry,crop farming, aquatic and poultry raising.

If the enterprise concerned wishes to continue its operation upon the expiration of the term specified in the land use certificate,
it may apply for renewal before its expiration.

   Article 7. A SEZ enterprise should pay a fee for the use of land, be it newly requisitioned land or on the site originally used by the enterprise.
The amount of the fee to be paid shall be decided by the Xiamen City People’s Government according to different trades, locations
and how advanced the technology involved is. The amount will not be readjusted within three years as from the date it is announced
and becomes effective, and it may be readjusted every three years there after as the case may be, and the readjusted rate shall not
be higher than 30% of the original. However, a SEZ enterprise is allowed a 50% deduction of the fee during the approved project construction
period.

   Article 8. Payment of the land use fee should be made annually. Preferential terms shall be granted if advance payment is made for three years
in one lump sum, the specific procedures for which shall be drawn up by the Xiamen City People’s Government.

The land use fee for the first year should be paid on the day on which the land use certificate is issued. If the use of the land
is less than six months, the enterprise is exempted, but if the period exceeds six months, only a six-month fee is to be paid. As
from the second year, the annual fee should be paid before March 31 every year. An extra charge equivalent to zero point one percent
of the fee per day shall have to be paid for any delay.

   Article 9. A SEZ enterprise or individual only has the right to use the land upon approval but not the right to its ownership. The right to
use the land may, within the specified use period, be transferred upon approval and the users go through the transfer procedures,
for which a new land use certificate is issued accordingly.

   Article 10. A SEZ enterprise must pay 50% of the set land use fee for land reserved for development purposes upon approval. The reservation
period should not exceed two years, beyond which the reservation is ended automatically at the end of the two-year period. The users
must go through the procedures if they use the land within the reservation period, the first year of which they are exempt from paying
the land use fee.

   Article 11. A SEZ enterprise, when in temporary need of the use of land, must have the approval of the Xiamen Urban and Rural Construction Commission
and pay for their temporary use. The longest duration for temporary use is two years.

Upon the expiration of the temporary use period the users of the land should dismantle all temporarily built facilities on the land
and any topographical damages made should be restored accordingly.

   Article 12. The land use fee may be exempted with the approval of the Xiamen City People’s Government when starting non-profit making education,
science and technology, medical and public health as well as public welfare undertakings in the SEZ.

   Article 13. Investors should apply with the Xiamen City People’s Government for developing and operating large tracts of land in the SEZ, and
individual agreements may be signed as regards the number of years for use, the scope and mode of operation, the scales of the fee
to be charged, and the methods of payment.

   Article 14. Any usage of land in the SEZ must be made in accordance with its set requirements for environmental protection, water and soil conservation,
fire and safety control, construction norms, landscaping and afforestation.

   Article 15. All SEZ enterprises are responsible for their individual needs in, and the building of the facilities for, the power, heat and water
supply, telecommunications, water drainage and sewage and roads within the confines of the land they use.

   Article 16. The present regulations are (also) applicable to non-SEZ Chinese enterprises that are associated (or otherwise in partnership) with
SEZ enterprises and that use land in the SEZ.

   Article 17. The present regulations shall come into force on the date of promulgation.

    






PROVISIONS CONCERNING THE ADMINISTRATION OF PRIVATE HOUSES OWNED BY FOREIGNERS

Provisions Concerning the Administration of Private Houses Owned by Foreigners

    

(Effective Date 1984.08.25)

In order to strengthen the administration of private houses owned by foreigners within the territory of China, and to protect the
lawful rights and interests of their owners, the following provisions are formulated in accordance with the relevant laws and regulations:

1. The administration of the residential houses and non-residential houses owned by foreign individuals or by a group of foreigners
jointly within the territory of China and for their own use or for renting out (hereinafter referred to as foreigners’ private houses),
shall comply with the provisions in the Regulations on the Administration of Private Houses in Urban Areas.

2. The owners of foreigners’ private houses must go through the registration procedures for the proprietary rights of houses at the
administrative departments for real estate under the people’s governments in the localities where the aforesaid houses are located
(hereinafter referred to as the administrative department for real estate), and after the examination and verification, obtain a
house owner’s certificate; in the event that the ownership of a house is to be transferred, the present state of the houses is to
be changed, or the owner’s nationality has been changed, the house owner must go through the registration procedures for the transfer
of the ownership, or for other changes, at the administrative department for real estate in the place where the said house is located.

3. In going through the procedures for the registration of the ownership of foreigners’ private houses, of the transfer or changes,
the owners of the houses shall present certificates of nationality and occupation, as well as the following certifying papers:

(1) With respect to newly-built, rebuilt, or expanded houses, the construction licences approved by the planning and administrative
departments in the localities, and also the building blueprints;

(2) With respect to newly-bought houses, the original certificates of post_title, the contracts for house transaction, and the post_title deeds
of the houses must be submitted;

(3) With respect to houses accepted as gifts, the original certificates of post_title, the deeds of gift or deeds of demised house, and
the post_title deeds of the houses must be submitted;

(4) With respect to houses exchanged, the certificates of post_title of both parties, the agreements signed by both parties, and the post_title
deeds of the houses must be submitted;

(5) With respect to inherited houses, the original certificates of post_title, certifying documents for the inheritance, and the deeds
of houses must be submitted;

(6) With respect to houses allotted from one’s family properties, the original certificates of post_title, lists of the said allotment,
and the deeds of the houses must be submitted;

(7) With respect to houses the demolition of which, has been approved, the original certificates of post_title, and the permission of demolition
of the houses must be submitted.

If the aforesaid certifying documents are incomplete or the ownership of the houses in question is uncertain, the registration procedures
shall be postponed until conditions are ripe for registration.

4. When foreigners’ private houses are rented or lent out, the relevant lease contracts and the lending documents shall be presented,
for the record, to the administrative departments for real estate in the places where the said houses are located.

5. If the owners of foreigners’ private houses are unable to go through, personally, the registration procedures for the transfer
of ownership or for other changes of the said houses, they may appoint agents or Chinese attorneys at law to handle the case; and
the owners of the houses shall personally vest their agents or attorneys with powers of attorney.

If the owners of foreigners’ private houses are unable to manage affairs concerning their houses because of their absence from the
places where their houses are located, or owing to other reasons, they may appoint agents resident in the places where the said houses
are located to manage the houses for them. The owners of the houses shall personally vest their agents or attorneys with powers of
attorney.

6. The certifying documents and post_title deeds to be used for going through the registration procedures for the ownership of houses
or for the transfer of ownership or other changes and the appointment of agents, shall be notarized. The notarial documents prepared
and signed in a foreign country shall be verified and confirmed by the Ministry of Foreign Affairs of the said country, or by its
authorized agencies, and by the Chinese embassies or consulates in the said countries.

The certifying documents and post_title deeds to be used for going through the registration procedures for the ownership of the houses
or for the transfer of ownership or for other changes and the appointment of agents, must be the original documents. If the certifying
documents and post_title deeds are prepared in foreign languages, notarized and verified translations in the Chinese language must be
attached thereto.

7. These Provisions shall not apply to the houses owned by Chinese-foreign equity joint ventures, Chinese-foreign contractual ventures,
and foreign-capital enterprises.

8. These Provisions shall go into effect as of the date of promulgation.

    






REGULATIONS OF THE CUSTOMS GENERAL ADMINISTRATION, THE MINISTRY OF FINANCE AND THE MINISTRY OF FOREIGN ECONOMIC RELATIONS AND TRADE CONCERNING SUPERVISION AND CONTROL OVER, AND LEVYING AND EXEMPTION OF DUTIES ON IMPORTS AND EXPORTS OF

MEASURES OF THE GENERAL ADMINISTRATION OF CUSTOMS GOVERNING INWARD AND OUTWARD FOREIGN VESSELS, GOODS FOR THE PURPOSE OF CHINESE-FOREIGN COOPERATIVE EXPLOITATION OF OFFSHORE OIL AND LUGGAGE AND ARTICLES BELONGING TO FOREIGN STAFF WORKING IN CHINA

The General Administration of Customs

Measures of the General Administration of Customs Governing Inward and Outward Foreign Vessels, Goods for the Purpose of Chinese-foreign
Cooperative Exploitation of Offshore Oil and Luggage and Articles Belonging to Foreign Staff Working in China

the General Administration of Customs

April 27, 1984 ContentsChapter I General Provisions

Chapter II Control over Foreign Vessels Coming From or Leaving for Foreign Ports

Chapter III Supervision and Control Over Import and Export Goods

Chapter IV Supervision and Control over Luggage and Articles Carried by Foreign Staff Working in China for Chinese-foreign Cooperation
Exploitation of Offshore Oil

Chapter V Supplementary Provisions

Chapter I General Provisions

Article 1

These Measures are hereby formulated in accordance with stipulations laid down in the “Interim Customs Law of the People’s Republic
of China”, the “Regulations of the People’s Republic of China on Exploitation of Offshore Oil Resources in Cooperation with Foreign
Enterprises” and other relevant decrees, for the purpose of encouraging the Chinese-foreign cooperative exploitation of offshore
oil.

Article 2

The vessels, platforms and goods imported and exported for the cooperative exploitation of offshore oil and luggage and articles carried
by foreign experts and technicians, shall be subject to control by the Customs of the People’s Republic of China (hereinafter referred
to as the Customs) in accordance with the provisions of these Measures.

Article 3

The corporations approved for cooperative exploitation of offshore oil and related service companies (including the regional sub-corporations
of the China National Offshore Oil Corporation (CNOOC), the special manufacturing company of China national offshore oil, China national
oilfield service and supply company, the contract corporation of joint ventures, foreign offshore companies and foreign contract
companies) shall submit the following documents to the local Customs for registration:

(1)

the document of approval by the Ministry of Foreign Economic Relations and Trade of the People’s Republic of China or other competent
authorities.

(2)

the contract (or the certificate of approval of the contract) for the exploitation project or sub-contract.

(3)

the licence for business issued by the General Administration of Industry and Commerce of the People’s Republic of China or its administrative
bureaus.

Chapter II Control over Foreign Vessels Coming From or Leaving for Foreign Ports

Article 4

Foreign vessels (including exploration, service, supply and transport vessels) and platforms (including drilling, operating platforms
and other structures on the sea), coming from foreign ports to the operating areas in the Chinese territorial sea (hereinafter referred
to as operating areas) or harbours or leaving the operating areas or harbours for abroad, as well as the special instruments and
equipment imported or exported on board the above-mentioned vessels or platforms for exploration and exploitation of offshore oil,
shall be declared to the Customs by the ship’s master or his agent and be subject to Customs inspection. Vessels entering and leaving
Chinese ports shall pay tonnage dues in accordance with the Interim Measures Governing the Levy of Tonnage Dues.

Article 5

The Customs shall, when deemed necessary, inspect the foreign vessels plying between Chinese harbours or between operating areas and
Chinese coastal harbours during the period of operation.

Article 6

Special instruments and equipment for oil exploration and exploitation as well as ship’s stores (including foodstuffs) carried by
the vessels or platforms must be used or consumed solely on board these vessels or Platforms and in the operating area.

Any above-mentioned goods temporarily discharged ashore, shall be stored in the Customs-bonded warehouse and be placed under Customs
supervision and control.

In the case of goods being sold or transferred to vessels of Chinese nationality or other units or individuals, the person concerned
shall apply to the Customs in advance for approval and comply with the Customs formalities concerning the payment of duties and taxes.

Article 7

Vessels of Chinese nationality being rented to a foreign company shall be supervised and controlled by the Customs in accordance with
the regulations governing international ocean-going ships of Chinese nationality.

Chapter III Supervision and Control Over Import and Export Goods

Article 8

When goods are imported or exported for the cooperative exploitation of offshore oil, the goods-owner or his agent shall declare them
to the Customs at the place of entry or exit by filling in and submitting the import or export Goods Declaration in duplicate together
with the document of approval, bill of lading (or waybill), invoices and packing list as provided for in Articles 12 and 14 of the
present Measures. Where the goods exceed the scope of the project or the company’s business scope, or are subject to import and export
licences in accordance with state stipulations, they shall be released by the Customs after verifying the import or export licences
issued by the Ministry of Foreign Economic Relations and Trade of the People’s Republic of China or its authorised agencies.

Where the goods-owner or his agent requests the completion of Customs formalities at the place of destination or shipment, permission
must be obtained from the Customs and the goods in question shall be placed under Customs transit procedure. When deemed necessary
the goods or the means of conveyance may be sealed by the Customs, and the forwarding agent shall be responsible for the intactness
of the Customs seals.

Article 9

At the time of Customs examination of the imports or exports, the goods-owner or his agent shall be present and be responsible for
unpacking the goods. Where examination of the goods is requested to be done outside the Customs supervision zone, the goods-owner
or his agent shall apply to the Customs in advance for permission, and pay the fees as stipulated by the relevant provisions.

Article 10

Imported goods, if not applied for or duty-paid with three months from the date of entry of the means of conveyance, shall be taken
over by the Customs for disposal in accordance with the relevant Provisions.

Article 11

Delivery of import goods shall only be allowed after Customs clearance, or with the special permission of the Customs, and the loading
of export goods for shipment abroad after completion of Customs formalities shall proceed under the Customs supervision and control.

Article 12

When the machinery, equipment, spare parts, accessories and other materials for implementation of oil contracts (hereinafter referred
to as production goods and materials) are imported, the goods-owner or his agent shall declare them to the Customs by submitting
a list of goods and materials approved by the CNOOC, or a document of approval with such list attached. The Customs shall allow such
goods to be imported where exclusive use of the goods for the project is ascertained.

The production goods and materials may be imported under special circumstances or as an urgent case by presentation of a certificate
issued by the regional sub-corporation of the CNOOC upon Customs verification and permission. Such goods may also be borrowed from
other oil corporations of the same nature. In either case, a formal document of approval from CNOOC shall be submitted to the Customs
within the prescribed time limit.

Article 13

The imported production goods and materials referred to in Article 12 , if falling into the categories as specified in the “Provisions
Concerning the Levy and Exemption of Customs Duty and Consolidated Industrial and Commercial Tax on Imports and Exports for the Chinese-foreign
Cooperative Exploitation of Offshore Oil” and its Attachment, the “List of Imported goods Exempt from Duties and Taxes for the Chinese-foreign
Cooperative Exploitation of Offshore Oil” (approved on 28 February 1982 by the State Council), shall be released by the Customs duty-free.
Those exceeding the prescribed scope shall be liable to customs duty and industrial and commercial (consolidated) taxes.

No resale or transfer of the imported goods and materials exempted from duty and tax shall be allowed without prior authorization.
Before any such resale or transfer are to be transacted, further approval shall be obtained from the competent authorities from which
the original approval was issued, and duties shall be levied or exempted by the local Customs accordingly.

Article 14

When the production goods and materials for the construction of oil bases or various services needed for the projects, are imported
by the service and supply companies for China offshore oil operation, and raw materials, components and parts for manufacturing machinery
and equipment used for oil operation are imported by the special manufacturing company. Customs formalities concerning their examination
and release shall be completed upon the production of the document of approval issued by the CNOOC or other competent authorities
with a list of import goods attached. Duties and taxes shall be levied or exempted in accordance with Article 13 of the present
Measures.

Article 15

Where articles for daily use for personnel of foreign nationality working on platforms and oil-bases and their families living with
them are imported by the supply or service company, Customs formalities concerning examination and release of the goods shall be
completed upon the production of the document of approval issued by the competent authorities at provincial and municipal level together
with the list of import goods. The goods shall be exempted from import duties and industrial and commercial (consolidated) taxes.

The above-mentioned articles shall neither be supplied to foreigners other than those working for the project nor to Chinese employees
and shall not be sold beyond the designated area.

The above-mentioned goods exempted from duties and taxes shall be stored in separate warehouses or special shops and be placed under
Customs control. In addition, a special fee entailed by such control amounting to 2% per consignment according to its CIF value shall
be paid to the Customs by the company. The service and supply company shall be required to prepare separate accounts for periodical
verification by Customs.

Article 16

The warehouses set up for consignment sale by foreign businessman at oil bases shall be dealt with by the Customs in accordance with
“Provincial Customs Measures Governing the Supervision and Control over Bonded Cargo and Bonded Warehouses”. When the goods and materials
for consignment sale and the spare parts and components for maintenance and repair are to be withdrawn from the warehouse for importation,
the goods-owner or his agent shall complete the Customs formalities and duties and taxes shall be levied or exempted according to
these Measures.

Article 17

Articles for office use in reasonable amounts imported by the foreign enterprise shall be applied to the Customs in advance for approval
and the customs duties and industrial and commercial (consolidated) taxes shall be waived after verification by the Customs.

Article 18

When goods are temporarily imported, the goods-owner or his agent shall declare to the local Customs and guarantee their re-exportation
within 6 months. When necessary, the time limit may be extended after Customs verification. Where such goods fail to be re-exported
within the prescribed time-limit, import formalities shall be completed and duties and taxes shall be levied in accordance with Articles
12 and 13 of the present Measures.

Article 19

The crude oil being exported shall be released by the Customs after examination on the strength of the export licence issued by the
Ministry of Foreign Economic Relations and Trade of the People’s Republic of China.

Any data, materials and samples shall be released by the Customs after verifying the certificates issued by the regional sub-corporations
of CNOOC.

Chapter IV Supervision and Control over Luggage and Articles Carried by Foreign Staff Working in China for Chinese-foreign Cooperation
Exploitation of Offshore Oil

Article 20

Luggage carried by incoming and outgoing foreign staff for a short stay in China and working in China for the purpose of Chinese-foreign
cooperative exploitation of offshore oil, shall be dealt with in accordance with the Customs regulations applicable to short stay
visitors.

Article 21

Luggage carried by incoming and outgoing foreign resident staff working in China for Chinese-foreign cooperative exploitation of offshore
oil, shall be subject to the Customs’ “Provisions Concerning Import and Export of Articles by Resident Offices and their Staff of
Offshore Enterprises and Press in China”.

Chapter V Supplementary Provisions

Article 22

Any one of the following acts shall be dealt with by the Customs according to the provisions laid down in the Interim Customs Law.

(1)

false declaration;

(2)

without Customs permission, shipping or taking delivery of goods not yet released by the Customs;

(3)

taking advantage of import and export opportunities for undertaking smuggling activities;

(4)

the sale, without Customs permission, of foreign goods and articles which have been released with exemption from duties and taxes;

(5)

goods and materials admitted temporarily having neither been re-exported within the time limit nor passed Customs formalities accordingly;

(6)

unauthoriedly tearing open the Customs covers or breaking seals; or losing Customs cover; and

(7)

other infringements of Customs regulations and stipulations.

Article 23

When necessary, Customs may send its officers or set up its establishment at oil bases for the collection of Customs duty. The oil
company there shall provide working and living facilities for the convenience of Customs officers.

Article 24

The import of building materials, office appliances and articles for daily use, used in special economic zones by the company offices
or living quarters there, shall be dealt with in accordance with the relevant regulations governing the control over importation
and exportation of goods in special economic zones.

Article 25

These Measures shall come into force as of June 1, 1984.



 
The General Administration of Customs
1984-04-27

 







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...