CUSTOMS LAW

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

   Article 9. An inward means of transport which has entered the territory but has not made its declaration to the Customs or an outward means
of transport which has cleared the Customs but has not left the territory shall move along routes specified by competent communications
authorities; in the absence of such specification, the routes shall be designated by the Customs.

   Article 10. The Customs shall be notified in advance, either by the person in charge of a means of transport or by the relevant transport and
communications department, of such details as when an inward or outward vessel, train or aircraft will arrive and depart, where it
will stay, what places it will move to during its stay, and when the loading or unloading of the goods and articles will take place.

   Article 11. The inward or outward goods and articles being loaded on or unloaded from a means of transport and the inward and outward passengers
boarding or getting off a means of transport shall be subject to customs control.

Upon the completion of such loading or unloading, the person in charge of the means of transport shall submit to the Customs documents
and records which reflect the actual situation of the loading and unloading.

Those boarding or getting off an inward or outward means of transport who carry articles with them shall truthfully declare to the
Customs and shall be subject to customs examination.

   Article 12. When an inward or outward means of transport is being checked by the Customs, the person in charge of the means of transport shall
be present and open the holds, cabins, rooms or doors of the vehicles at the request of the Customs; where smuggling is suspected,
such person shall also open or dismantle the part of the means of transport which may conceal smuggled goods and articles or remove
the goods and materials.

In accordance with work requirements, the Customs may dispatch officers to perform duties on board the means of transport. The person
in charge of the means of transport shall provide them with conveniences.

   Article 13. An inward means of transport of countries or regions outside the territory or an outward means of transport of units or enterprises
inside the territory shall not be transferred or devoted to other uses prior to the completion of customs formalities and payment
of customs duties.

   Article 14. Where inward or outward vessels and aircraft are concurrently engaged in transportation of goods and passengers within the territory,
customs approval shall be obtained and requirements for customs control shall be fulfilled.

Customs formalities shall be completed with the Customs for an inward or outward means of transport to change to transport business
within the territory.

   Article 15. Coastal transport vessels, fishing boats and ships engaged in special operations at sea may not carry, obtain on an exchange basis,
purchase or transfer inward and outward goods and articles without customs approval.

   Article 16. When, owing to force majeure, an inward or outward vessel or aircraft is forced to berth, land or jettison and discharge goods and
articles at a place without a customs establishment, the person in charge of the means of transport shall report immediately to the
customs establishment nearby.

   Article 17. All import goods, throughout the period from the time of arrival in the territory to the time of customs clearance; all export goods,
throughout the period from the time of declaration to the time of departure from the territory; and all transit, transshipment and
through goods, throughout the period from the time of arrival in the territory to the time of departure from the territory, shall
be subject to customs control.

   Article 18. The consignee for import goods and the consignor for export goods shall make an accurate declaration and submit the import or export
license and relevant papers to the Customs for examination. In the absence of an import or export license, goods whose importation
or exportation is restricted by the state shall not be released. Specific measures for handling such matters shall be enacted by
the State Council.

Declaration of import goods shall be made to the Customs by the consignee within 14 days of the declaration of the arrival of the
means of transport; declaration of export goods shall be made by the consignor 24 hours prior to loading unless otherwise specially
approved by the Customs.

Where the consignee fails to declare the import goods within the time limit prescribed in the preceding paragraph, a fee for delayed
declaration shall be imposed by the Customs.

   Article 19. All import and export goods shall be subject to customs examination. While the examination is being carried out, the consignee
for the import goods or the consignor for the export goods shall be present and be responsible for moving the goods and opening and
restoring the package. The Customs shall be enpost_titled to examine or re-examine the goods or take samples from them without the presence
of the consignee or the consignor whenever it considers this necessary. Import and export goods may be exempted from examination
if an application has been made by the consignee or consignor and approved by the General Customs Administration.

   Article 20. Unless specially approved by the Customs, import and export goods shall be released upon customs endorsement only after the payment
of duties or the provision of a guarantee.

   Article 21. Where the consignee fails to declare the import goods to the Customs within three months of the declaration of the arrival of the
means of transport, the goods shall be taken over and sold off by the Customs. After the costs of transport, loading and unloading
and storage and the duties and taxes are deducted from the money obtained from the sale, the remaining sum, if any, shall be returned
to the consignee provided he submits an application to the Customs within one year of the sale of the goods; if nobody applies within
the time limit, the money shall be turned over to the State Treasury.

Inward goods confirmed by the Customs to be misdischarged or over-discharged may be returned to the place of consignment or imported
upon completion of necessary formalities by the person in charge of the means of transport carrying the goods or the consignee or
the consignor for the goods within three months of the discharging. When necessary, an extension of three months may be granted
through customs approval. If the formalities are not completed within the time limit, the goods shall be disposed of by the Customs
in accordance with the provisions laid down in the preceding paragraph.

Where goods listed in the preceding two paragraphs are not suitable for storage over a long period, the Customs may, according to
actual circumstances, dispose of them before the time limit is reached.

Import goods declared to be abandoned by the consignee or the owner shall be taken over and sold off by the Customs. The money thus
obtained shall be turned over to the State Treasury after the costs of transport, loading, unloading and storage are deducted.

   Article 22. Goods that are temporarily imported or exported with the approval of the Customs shall be re-shipped out of or into the territory
within six months. An extension may be granted in special circumstances through customs approval.

   Article 23. The operation of the storage, processing and assembling and consignment sales of bonded goods shall be approved by and registered
with the Customs.

   Article 24. Customs formalities for import goods shall be completed by the consignee at the customs establishment at the place where the goods
enter the territory; those for export goods shall be completed by the consignor at the customs establishment where the goods depart
from the territory.

If applied for by the consignee or the consignor and approved by the Customs, customs formalities for import goods may be completed
at the place of destination where there is a customs establishment, and those for export goods at the place of consignment where
there is a customs establishment. The transport of such goods from one place with a customs establishment to another shall comply
with the control requirements of the Customs. When necessary, customs officers may escort the goods in transportation.

Where goods enter or leave the territory by electric cables, pipelines or other special means of conveyance, the management units
concerned shall report at regular intervals to the designated customs establishment and complete customs formalities as required.

   Article 25. All transit, transshipment and through goods shall be truthfully declared by the person in charge of the means of transport to the
customs establishment at the place where the goods enter the territory, and shall be shipped out of the territory within the designated
time limit.

The Customs may examine such goods whenever it considers this necessary.

   Article 26. Without customs approval, no unit or individual may open, pick up, deliver, forward, change, repack, mortgage or transfer goods
under customs control or change the identification marks on such goods.

Seals affixed by the Customs may not be opened or broken by any person without customs authorization.

The managers of warehouses and places where goods under customs control are kept shall complete procedures for the receipt and delivery
of goods in accordance with customs regulations.

The storage of goods under customs control at a place outside a customs surveillance zone shall be approved by the Customs and subject
to customs control.

   Article 27. The General Customs Administration shall draw up, independently or jointly with the relevant departments under the State Council,
rules for control over inward and outward containers; rules for control over the salvage of inward and outward goods and sunken ships;
rules for control over inward and outward goods involved in small volumes of border transactions and other inward and outward goods
not specified in this Law.

   Article 28. Inward and outward luggage carried by individuals and inward and outward articles sent by post shall be limited to reasonable quantities
for personal use and shall be subject to customs control.

   Article 29. All inward and outward articles shall be accurately declared to the Customs by the owner and shall be subject to customs examination.

Seals affixed by the Customs may not be opened or broken by any person without authorization.

   Article 30. The loading, unloading, transshipment and transit of inward and outward mail bags shall be subject to customs control, and a covering
waybill shall be submitted to the Customs by the postal enterprise concerned.

The postal enterprise shall inform the Customs in advance of the schedule for the opening and sealing of international mail bags.
The Customs shall promptly dispatch officers to supervise checking and examination on the spot.

   Article 31. Inward and outward articles sent by post shall be posted or delivered by managing units only after they have been examined and released
by the Customs.

   Article 32. Articles registered with and approved by the Customs for temporarily entering or leaving the territory duty-free, shall be taken
out or brought into the territory again by the owner.

Persons passing through the territory may not leave in the territory, without customs approval, the articles they carry with them.

   Article 33. In accordance with Article 21 of this Law, the Customs shall dispose of inward and outward articles declared to be abandoned by
the owner; articles to which no one makes a claim or for which customs formalities are not completed within the time limit set by
the Customs; and inward postal items which can neither be delivered nor be returned.

   Article 34. Inward and outward articles intended for official or personal use by foreign missions or personnel enjoying diplomatic privileges
and immunities shall be dealt with in accordance with the Regulations of the People ‘s Republic of China on Diplomatic Privileges
and Immunities.

   Article 35. Unless otherwise provided for in this Law, customs duties shall be levied according to the import and export tariff on goods permitted
to be imported or exported and articles permitted to enter or leave the territory. The tariff shall be made known to the public.

   Article 36. The consignee of import goods, the consignor of export goods and the owner of inward and outward articles shall be the obligatory
customs duty payer.

   Article 37. The customs duty payer of import or export goods shall pay the amount levied within seven days following the date of issuance of
the duty memorandum. In case of failure to meet this time limit, a fee for delayed payment shall be imposed by the Customs. Where
the delay exceeds three months, the Customs may instruct the guarantor to pay the duties or sell off the goods to offset the duties.
The Customs may inform the bank to deduct the amount of duties due from the deposits of the guarantor or the obligatory customs
duty payer when it considers this necessary.

The payment of duties on inward or outward articles shall be made, prior to their release, by the obligatory customs duty payer.

   Article 38. The duty-paying value of an import item shall be its normal CIF price, which shall be approved by the Customs; the duty-paying value
of an export item shall be its normal FOB price, which shall be approved by the Customs, minus the export duty. Where it is impossible
to ascertain the CIF or FOB price, the duty-paying value of an import or export item shall be fixed by the Customs.

The duty-paying value of an inward or outward article shall be fixed by the Customs.

   Article 39. Duty reduction or exemption shall be granted for import or export goods and inward or outward articles listed below:

(1) advertising items and trade samples of no commercial value;

(2) materials presented free of charge by foreign governments or international organizations;

(3) goods to which damage or loss has occurred prior to customs release;

(4) articles of a quantity or value within the fixed limit;

(5) other goods and articles specified by law as items for duty reduction or exemption; and

(6) goods and articles specified as items for duty reduction or exemption by international treaties to which the People’s Republic
of China is either a contracting or an acceding party.

   Article 40. Duty reduction or exemption may be granted for import and export goods of the Special Economic Zones and other specially designated
areas; for import and export goods of specific enterprises such as Chinese-foreign equity joint ventures, Chinese-foreign contractual
joint ventures and enterprises with exclusive foreign investment; for import and export goods devoted to specific purposes; and for
materials donated for use by public welfare undertakings. The State Council shall define the scope and formulate the rules for such
reduction and exemption.

The State Council or departments empowered by the State Council shall define the scope and formulate the rules for duty reduction
or exemption involved in small volumes of border transactions.

   Article 41. All import goods and articles for which duty reduction or exemption is granted in accordance with the preceding Article shall be
used only in specific areas and enterprises or for specific purposes. They shall not be utilized otherwise unless customs approval
is obtained and duties duly paid.

   Article 42. Temporary duty reduction or exemption not specified in Article 39 and 40 of this law shall be examined and approved by the General
Customs Administration independently or jointly with the financial department under the State Council in accordance with the regulations
of the State Council.

   Article 43. Temporary duty exemption shall be granted for goods approved by the Customs as temporarily imported or exported items and for bonded
goods imported by special permission after the consignee or the consignor of the goods submits to the Customs a guarantee or a deposit
of an amount equal to the duties.

   Article 44. Where the Customs finds that the duties are short-levied or not levied on a consignment of import or export goods or on an inward
or outward article after its release, the Customs shall collect the money payable from the obligatory customs duty payer within one
year of the previous duty payment or the release of the item. If the short-levied or non-levied duties are attributable to the duty
payer’s violation of the customs regulations, the Customs may collect the unpaid amount from him within three years.

   Article 45. Where the duties are over-levied, the Customs, upon discovery, shall refund the money without delay. The duty payer may ask the
Customs for refunding within one year of the date of duty payment.

   Article 46. Where the obligatory customs duty payer is involved in a dispute over duty payment with the Customs, he shall first pay the duties
and may, within 30 days of the issuance of the duty memorandum, apply to the Customs in writing for a reconsideration of the case.
The Customs shall reach a decision within 15 days of the receipt of the application. If the obligatory customs duty payer refuses
to accept the decision, he may apply to the General Customs Administration for a reconsideration of the case within 15 days of the
receipt of the decision. If the decision of the General Customs Administration is still considered unacceptable by the obligatory
customs duty payer, he may file a suit in a people’s court within 15 days of the receipt of the decision.

   Article 47. Evasion of customs control in one of the forms listed below shall constitute a crime of smuggling:

(1) to transport, carry or send by post into or out of the territory narcotic drugs, weapons or counterfeit currencies which are prohibited
by the state from being imported or exported; to transport, carry or send by post into or out of the territory obscene objects for
the purpose of profit-making or dissemination; or to transport, carry or send by post out of the territory cultural relics which
are prohibited by the state from being exported;

(2) to transport, carry or send by post into or out of the territory, for the purpose of making a profit, articles in relatively large
quantities or of a relatively high value which are prohibited by the state from being imported or exported, but which are not included
in item (1) of this Article; and goods or articles in relatively large quantities or of a relatively high value whose importation
or exportation is restricted by the state or which are subject to the collection of customs duties according to law; or

(3) to sell, without customs approval and payment of duties, bonded goods imported by special permission or goods listed for special
duty reduction or exemption which are in relatively large quantities or of a relatively high value.

Any armed smuggling or resistance by violence to customs examination of smuggled goods or articles shall constitute a crime of smuggling,
whatever the quantity or value of the goods or articles involved.

The criminal punishments imposed by the people’s court to persons guilty of smuggling include imposing a fine and the confiscation
of the smuggled goods or articles, of the means of transport used for smuggling and of the illegal proceeds obtained therefrom.

Where an enterprise, an institution or a state organ or a public organization is guilty of smuggling, the judicial organ shall investigate
and determine the criminal responsibility of the person or persons in charge and the person or persons directly answerable for the
offence, and issue an order to impose a fine on the unit and confiscate the smuggled goods or articles, the means of transport used
for smuggling and the illegal proceeds obtained therefrom.

   Article 48. If the smuggled goods and articles involved in one of the acts listed under item (2) and (3) of Article 47 of this Law are not large
in quantity nor of high value, or where the carrying or sending by post of obscene objects into or out of the territory does not
yet constitute a crime of smuggling, the Customs may, while confiscating the goods, articles or illegal proceeds obtained therefrom,
concurrently impose a fine on the person or persons concerned.

   Article 49. Any of the following acts shall be dealt with as a crime of smuggling and shall be punishable in accordance with the provisions
of Article 47 of this Law:

(1) to purchase directly and illegally from a smuggler articles which are prohibited by the state from being imported; or to purchase
directly and illegally from a smuggler other smuggled goods or articles in relatively large quantities or of a relatively high value;
or

(2) to transport, purchase or sell on inland or territorial waters articles which are prohibited by the state from being imported
or exported; or to transport, purchase or sell without legal certification goods or articles whose importation or exportation is
restricted by the state and which are in relatively large quantities or of a relatively high value.

Where an act listed in the preceding paragraphs does not yet constitute a crime of smuggling, punishment shall be applied in accordance
with the provisions of Article 48 of this Law.

   Article 50. Any individual who carries or sends by post articles for personal use into or out of the territory in a quantity exceeding the reasonable
limit and fails to declare them to the Customs shall be made to pay the duties and may be fined.

   Article 51. A fine may be imposed for any of the following acts which violate the regulations on customs control prescribed in this Law:

(1) for a means of transport to enter or leave the territory at a place without a customs establishment;

(2) to fail to inform the Customs of the arrival and departure time of a means of transport and the place where it will stay or any
change of such a place;

(3) to fail to declare truthfully to the Customs the import or export goods or the transit, transshipment and through goods;

(4) to fail to accept, in accordance with relevant regulations, the checking and examination by the Customs of the means of transport,
goods or articles entering or leaving the territory;

(5) for an inward or outward means of transport to load or unload inward or outward goods or articles or let passengers get on or
off without customs approval;

(6) for an inward or outward means of transport staying at a place with a customs establishment to leave without customs approval;

(7) for an inward or outward means of transport en route from one place with a customs establishment to another with a customs establishment
to move out of the territory or to a point in the territory where there is no customs establishment without completing the clearance
formalities and obtaining customs approval;

(8) for an inward or outward means of transport to engage concurrently in or change to service within the territory without customs
approval;

(9) for an inward or outward vessel or aircraft which, by force majeure, stops or lands at a place without a customs establishment,
or jettisons or discharges goods or articles in the territory to fai

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