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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