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Customs Regulations of the People's Republic of China on Control over Bonded Materials Imported by Materials Corporations for Foreign Investment Enterprises - 1991

(Promulgated by Decree No. 17 of the Customs General Administration of the People's Republic of China on March 5, 1991)


Article 1.

In accordance with "The Customs Law of the People's Republic of China" and in order to improve materials supply to the foreign investment enterprises and to strengthen Customs control the regulations hereof are formulated.

Article 2.

The regulations are applicable to the materials corporations supply to foreign investment enterprises (hereinafter referred to as materials corporations) that are given the right to manage the bonded cargos listed in Article 5 of the regulations upon approval by the government departments in-charge.

Article 3.

The materials corporations shall go through procedures of registration for the record after presenting to the local Customs Office the documents of approval issued by the government departments in-charge and business licences issued by the industrial and commercial administrations.

Article 4.

The materials corporations shall present to the local Customs Office and a duplicate copy to the Customs General Administration a list of the annual plan for imports approved by the government departments in-charge as well as the import quotas and the major commodities for the materials corporations.

Article 5.

The Customs shall exercise supervision and control over the bonded materials including raw materials, knockdown parts, parts and components, elements and devices, fittings, auxiliary materials and fuel which are in short supply in the home market and have to be imported to meet the needs of Foreign Invested Enterprises. When the above-said bonded cargos are imported, they shall be declared at the Customs Office upon presenting import contracts, Customs Declaration of Import Goods and other related declarations and certificates for deferring payment of Customs duties. The bonded cargos shall be kept in the public bonded storehouses approved by the Customs or the bonded storehouses under the management of the materials corporations themselves. the Customs shall oversee and control the bonded cargos in accordance with "The Customs Law of the People's Republic of China" and "The Regulations of the Customs of the People's Republic of China on Control over Bonded Storehouses and Cargos."

Article 6.

Domestically-produced cargos which are supplied to foreign investment enterprises shall not be allowed to be stored in the bonded storehouses.

Article 7.

When the foreign investment enterprises purchase the imported cargos stored in the bonded storehouses from the materials corporations, they shall go through declaration formalities according to regulations on inbound import cargos. Import licences shall be presented to the Customs for examination in case the cargos are subject to import licences.

The fees are exempted from presenting import licences when they purchase the above-said cargos, in case the materials corporations have already delivered the import licences to the Customs for examination in accordance with the rules and regulations.

If the above-said cargos are materials or parts needed for the execution of contracts on export products, the related enterprises shall submit to the Customs for examination export contracts, order contracts signed between the enterprises and the materials corporations, "the Registration Manual" verified and issued by the Customs and triple copy of "the form of approval for material supply to the foreign-invested enterprises by materials corporations" filled in and signed by the materials corporations. One copy of the form of approval shall be signed by the Customs and given to the materials corporation for handling delivery of the cargos and completing the verifying and writing-off formalities; another copy is for the Foreign Invested Enterprises; and another copy is for the Customs to place on file to follow verifying and writing-off procedures.

Article 8.

foreign investment enterprises that are entitled to tax reduction or exemption in their import cargos may also enjoy tax reduction or exemption when they purchase the same kind of cargos from the materials corporations. Those that are not entitled to tax reduction and exemption shall pay Customs duties and the industrial and commercial consolidation tax for the import link according to the rules and regulations.

Article 9.

The duration is one year for the materials corporations to keep the imported cargos in the bonded storehouses. The corporations may apply to the Customs for extending the duration in special conditions. But the extension of the duration shall not exceed one year.

Cargo beyond the bond time limit or are surplus to the requirements of foreign investment enterprises shall be shipped back out of Chinese territory The bonded cargos that fail to be shipped back out of the territory beyond the time limit shall be handled by the Customs in accordance with Article 21 of "The Customs Law of the People's Republic of China."

Article 10.

The bonded cargos imported by the materials corporations shall not be sold or transferred to domestic enterprises without approval by the Customs and the competent economic and trade departments and shall not be exchanged with domestic cargos for use.

Article 11.

Any act in violation of the regulations shall be dealt with by the Customs according to the relevant provisions of "The Customs Law of the People's Republic of China."

Article 12.

Customs control over the bonded means of production imported by the Shenzhen Special Economic Zone shall be exercised in accordance with "Regulations on Control over the Market of Bonded Means of Production in the Shenzhen Special Economic Zone."

Article 13.

The power to interpret the regulations rests with the Customs General Administration.

Article 14.

The regulations come into force on April 1, 1991.

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