General Administration of Customs Decree No. 272 - Measures of the People's Republic of China on the Administration of Collection of Duties on Import and Export Goods

      These Measures shall take effect on December 1, 2024. The "Measures of the People's Republic of China on the Administration of Collection of Duties on Import and Export Goods" promulgated by Decree No. 124 of the General Administration of Customs on January 4, 2005, and amended by Decree No. 198 on November 26, 2010, Decree No. 218 on March 13, 2014, Decree No. 235 on December 20, 2017, and Decree No. 240 on May 29, 2018, as well as the "Interim Measures of the People's Republic of China on Customs Tax Preservation and Compulsory Measures" promulgated by Decree No. 184 on August 19, 2009, shall be simultaneously repealed. The following is the content of the Decree:

      General Administration of Customs Decree No. 272 (Promulgated by Decree No. 272 of the General Administration of Customs on October 28, 2024, effective from December 1, 2024)

Article 1 These Measures are formulated in accordance with the "Customs Law of the People's Republic of China" (hereinafter referred to as the "Customs Law"), the "Tariff Law of the People's Republic of China" (hereinafter referred to as the "Tariff Law") and other laws and administrative regulations for the purpose of ensuring the implementation of national tax policies, strengthening the administration of customs tax collection, ensuring taxation in accordance with the law, safeguarding national tax revenue, and protecting the legitimate rights and interests of taxpayers.

Article 2 The administration of customs tax collection shall follow the principles of lawful administration, taxation according to the applicable rates, and strict refund and supplementary procedures.

Article 3 These Measures apply to the administration of collection of import and export duties and customs taxes collected on behalf of the state at the import stage. Customs taxes collected on behalf of the state at the import stage include import value-added tax and import consumption tax.

Article 4 The consignee of imported goods is the taxpayer of import duties and customs taxes collected on behalf of the state at the import stage. The consignor of exported goods is the taxpayer of export duties. E-commerce platform operators, logistics enterprises and customs declaration enterprises engaged in cross-border e-commerce retail imports, as well as units and individuals that are obligated by laws and administrative regulations to withhold and remit or collect and remit duties and customs taxes collected on behalf of the state at the import stage, are the withholding agents of duties and customs taxes collected on behalf of the state at the import stage.

Article 5 Based on the actual needs of tax administration, the General Administration of Customs shall establish a working coordination mechanism for the Comprehensive Tax Administration Leading Group to guide national customs offices in carrying out the administration of import and export tax collection.

Article 6 Customs and its staff shall keep confidential the trade secrets, personal privacy, and personal information of taxpayers and withholding agents that they become aware of in the performance of their duties in accordance with the law, and shall not disclose or illegally provide them to others. Taxpayers and withholding agents may submit a written request to the Customs to keep their trade secrets confidential, specifying in detail the content to be kept confidential, but may not refuse to provide relevant information to the Customs on the grounds of trade secrets. Chapter 2: Assessment of Duties Section 1: Tax Declaration

Article 7 When importing or exporting goods, taxpayers and withholding agents shall, in accordance with the law, go through the formalities for customs declaration and tax payment, and submit relevant documents as required. When the Customs deems it necessary, taxpayers and withholding agents shall also provide the relevant information required for determining the dutiable value, commodity classification, origin, etc. If the information provided is in a foreign language, taxpayers and withholding agents shall provide a Chinese translation when required by the Customs and shall be responsible for the completeness and accuracy of the translation content.

Article 8 Taxpayers and withholding agents shall, in accordance with laws, administrative regulations and relevant provisions, truthfully and standardly declare the dutiable value, commodity code, commodity name and specifications, origin, quantity and other tax-related information of import and export goods, calculate and declare the tax amount to the Customs.

Article 9 In order to determine the amount of duties payable on import and export goods, the Customs may require taxpayers and withholding agents to make supplementary declarations in accordance with relevant provisions. Taxpayers and withholding agents may also voluntarily request to make supplementary declarations when they deem it necessary.

Article 10 Prior to the actual import or export of goods, the Customs may, upon application, make advance rulings on the elements related to the dutiable value or valuation methods of imported goods, as well as the commodity classification and origin of import and export goods, in accordance with relevant provisions. Taxpayers and withholding agents who import or export goods under circumstances identical to those set forth in an advance ruling during the validity period of the ruling shall declare in accordance with the advance ruling, and the Customs shall recognize such declaration. Section 2: Amount of Duties Payable

Article 11 The amount of duties payable on import and export goods shall be determined based on the dutiable value, commodity classification, origin, quantity, applicable tax rate and exchange rate for assessment.

Article 12 The applicable tariff rates for import and export goods shall be determined in accordance with the provisions of the Tariff Law concerning most-favored-nation rates, agreement rates, preferential rates, ordinary rates, export rates, tariff quota rates or provisional rates. The applicable import value-added tax rates and consumption tax rates for imported goods shall be determined in accordance with relevant laws, administrative regulations and relevant provisions. The tax rates for imported goods subject to anti-dumping measures, countervailing measures, safeguard measures, corresponding measures taken on a reciprocal basis, or retaliatory tariffs shall be implemented in accordance with relevant laws, administrative regulations and relevant provisions.

Article 13 If the price and related expenses of import and export goods are denominated in foreign currency, they shall be converted into Renminbi for the calculation of the dutiable value at the exchange rate for assessment, rounded to the nearest cent using the rounding method. The exchange rate for assessment used by the Customs on a monthly basis shall be the central parity rate of the Renminbi against foreign currencies published by the China Foreign Exchange Trading Center authorized by the People's Bank of China on the third Wednesday of the previous month. If the third Wednesday is not a day on which the interbank foreign exchange market is open, the central parity rate published on the next trading day shall be used. If the above exchange rates experience significant fluctuations, the General Administration of Customs may, when deemed necessary, prescribe a separate exchange rate for assessment and make it public.

Article 14 The tax rate and exchange rate for assessment applicable to import and export goods shall be those in effect on the date when the taxpayer or withholding agent completes the declaration. For goods declared in advance with Customs approval before arrival, the tax rate in effect on the date when the means of transport carrying the goods declares entry shall apply, and the exchange rate for assessment in effect on the date of completing the declaration shall apply. For goods transported under customs transit for import, the tax rate and exchange rate for assessment in effect on the date of completing the declaration at the Customs at the place of destination shall apply. For goods declared in advance with Customs approval before entry, the tax rate in effect on the date when the means of transport carrying the goods declares entry shall apply, and the exchange rate for assessment in effect on the date of completing the declaration shall apply; for goods declared in advance with Customs approval after entry but before arrival at the place of destination, the tax rate in effect on the date when the means of transport carrying the goods arrives at the place of destination shall apply, and the exchange rate for assessment in effect on the date of completing the declaration shall apply. For goods transported under customs transit for export, the tax rate and exchange rate for assessment in effect on the date of completing the declaration at the Customs at the place of departure shall apply. For import and export goods declared on a consolidated basis with Customs approval, the tax rate and exchange rate for assessment in effect on the date of completing the declaration for each import or export of goods shall apply. For imported goods declared under the "two-step declaration" procedure, the tax rate and exchange rate for assessment in effect on the date of completing the summary declaration shall apply. For goods re-declared after the cancellation of a customs declaration in accordance with relevant provisions, the tax rate and exchange rate for assessment applicable to the original customs declaration shall apply. For imported goods sold by Customs auction in accordance with the law due to failure to declare within the prescribed time limit, the tax shall be assessed based on the tax rate and exchange rate for assessment in effect on the date when the means of transport carrying the goods declared entry.

Article 15 Under any of the following circumstances, the tax rate and exchange rate for assessment in effect on the date when the taxpayer or withholding agent goes through the tax payment formalities shall apply: (1) Bonded goods are not re-exported but are transferred to domestic sale; (2) Duty-reduced or duty-exempted goods are transferred, used for other purposes or otherwise disposed of with approval; (3) Temporarily imported goods are not re-exported or temporarily exported goods are not re-imported; (4) Leased imported goods are purchased after lease or tax is paid in installments. Article 16: For supplementary collection or refund of duties on import and export goods, the applicable tax rate and exchange rate for assessment shall be determined in accordance with the provisions of Article 14 or Article 15 of these Measures. If duties need to be retroactively collected due to violations by the taxpayer or withholding agent, the tax rate and exchange rate for assessment in effect on the date when the violation occurred shall apply; if the date of the violation cannot be determined, the tax rate and exchange rate for assessment in effect on the date when the Customs discovers the violation shall apply.

Article 17 Duties shall be calculated by means of ad valorem, specific or compound methods in accordance with the provisions of the Tariff Law. Customs taxes collected on behalf of the state at the import stage shall be calculated in accordance with the applicable tax type, tax item, tax rate and calculation formula prescribed by relevant laws and administrative regulations. Unless otherwise provided, the amount of duties and customs taxes collected on behalf of the state at the import stage payable shall be calculated in accordance with the following formulas: Ad valorem duty payable = dutiable value × ad valorem duty rate; Specific duty payable = quantity of goods × specific duty rate; Compound duty payable = dutiable value × ad valorem duty rate + quantity of goods × specific duty rate; Ad valorem import consumption tax payable = [(dutiable value + duty amount) / (1 - consumption tax ad valorem rate)] × consumption tax ad valorem rate; Specific import consumption tax payable = quantity of goods × consumption tax specific rate; Compound import consumption tax payable = [(dutiable value + duty amount + quantity of goods × consumption tax specific rate) / (1 - consumption tax ad valorem rate)] × consumption tax ad valorem rate + quantity of goods × consumption tax specific rate; Import value-added tax payable = (dutiable value + duty amount + import consumption tax amount) × VAT rate. Article 18: For bulk import and export goods with over-shipment or short-shipment, the following provisions shall apply: (1) If the over-shipment quantity is within 3% of the quantity stated in the contract and invoice, or if there is short-shipment, duty shall be assessed based on the quantity stated in the contract and invoice; (2) If the over-shipment quantity exceeds 3% of the quantity stated in the contract and invoice, duty shall be assessed based on the actual import or export quantity.

Article 19 Duties, customs taxes collected on behalf of the state at the import stage, late payment penalties, interest, etc. shall be calculated in Renminbi and rounded to the nearest cent using the rounding method. The threshold for duties, customs taxes collected on behalf of the state at the import stage, and late payment penalties shall be implemented in accordance with the duty-free limit per shipment prescribed by the State Council. Section 3: Tax Payment

Article 20 Taxpayers and withholding agents shall pay the tax within 15 days from the date of completing the declaration, except in special circumstances where tax risk management is required. If the consolidated tax payment model is selected, taxpayers and withholding agents may make a consolidated tax payment within 15 days from the date of completing the declaration or before the end of the fifth working day of the following month. If the tax is not paid within the prescribed time limit, the Customs shall impose a late payment penalty at the rate of 0.05% per day from the day after the payment deadline to the date when the tax is fully paid. If the payment deadline falls on a Saturday, Sunday or other public holiday, it shall be extended to the first working day after the holiday. If the State Council temporarily adjusts rest days and working days, the Customs shall calculate the payment deadline based on the adjusted schedule.

Article 21 Taxpayers and withholding agents may choose to pay tax by electronic payment or over-the-counter bank payment. Article 22: The date on which the bank receives the tax payment shall be the date on which the taxpayer or withholding agent fully pays the tax. Taxpayers and withholding agents may print the payment voucher themselves after fully paying the tax and late payment penalties.

Article 23 Due to force majeure or adjustment of national tax policies, if taxpayers or withholding agents are unable to pay the tax on time, they may, upon application to the Customs and provision of tax security, defer the tax payment, but the deferral period shall not exceed six months. Chapter 3: Tax Collection in Special Circumstances Section 1: Replaced Goods Without Compensation

Article 24 Imported replaced goods without compensation shall be exempt from import duties and customs taxes collected on behalf of the state at the import stage; exported replaced goods without compensation shall be exempt from export duties. The term "replaced goods without compensation" as used in the preceding paragraph refers to goods that are provided free of charge as compensation or replacement by the consignor, carrier or insurer of the import or export goods due to damage, shortage, poor quality or non-conformity with specifications, and that are identical to the original goods or conform to the contract stipulations.

Article 25 Taxpayers shall apply to the Customs for import or export formalities for replaced goods without compensation within the period for claiming compensation stipulated in the original import or export contract, but not exceeding three years from the date of release of the original goods.

Article 26 When declaring the import or export of replaced goods without compensation, taxpayers shall submit the compensation agreement signed by both the buyer and seller. When the Customs deems it necessary, taxpayers shall also submit an inspection certificate issued by a qualified commodity inspection agency regarding the damage, shortage, poor quality or non-conformity with specifications of the original import or export goods, or other relevant supporting documents.

Article 27 If the replaced goods without compensation declared for import or export by the taxpayer are not completely identical to the free-of-charge replaced goods that are returned out of or brought back into the country, or are not completely in conformity with the contract stipulations, the taxpayer shall explain the reasons to the Customs. If the tariff classification number of the free-of-charge replacement goods declared for import or export has not changed from that of the free-of-charge replaced goods, the taxpayer shall determine the dutiable value, calculate and declare the tax in accordance with the relevant provisions on determining the dutiable value of import and export goods and the tax rate and exchange rate for assessment applicable at the time of import or export of the free-of-charge replaced goods. If the amount of duty payable is higher than the duty already paid on the free-of-charge replaced goods, the taxpayer shall pay the difference. If the amount of duty payable is lower than the duty already paid on the free-of-charge replaced goods, and the consignor, carrier or insurer of the free-of-charge replaced goods simultaneously compensates for the payment, the Customs shall refund the corresponding portion of the tax on the compensation amount; if there is no compensation for the payment, the difference shall not be refunded. If the tariff classification number of the free-of-charge replacement goods declared for import or export by the taxpayer is inconsistent with that of the free-of-charge replaced goods, the provisions on replaced goods without compensation shall not apply, and the Customs shall levy tax in accordance with the tax administration provisions for general import and export goods.

Article 28 When taxpayers declare the import or export of replaced goods without compensation, if the free-of-charge replaced imported goods are not returned out of the country and are not abandoned to the Customs for disposal, or if the free-of-charge replaced exported goods are not brought back into the country, the Customs shall re-assess the duty on the free-of-charge replaced goods in accordance with the tax rate, exchange rate for assessment and relevant provisions in effect on the date of completing the declaration for import or export of the replaced goods without compensation.

Article 29 No export duty shall be levied on free-of-charge replaced goods returned out of the country. No import duty or customs taxes collected on behalf of the state at the import stage shall be levied on free-of-charge replaced goods brought back into the country. Section 2: Leased Goods

Article 30 When taxpayers declare the import of leased goods, they shall submit the lease contract and other relevant materials to the Customs. Leased imported goods shall be secured in accordance with the provisions.

Article 31 If the rent for leased imported goods is paid in a lump sum, the taxpayer shall go through the tax payment formalities and pay the tax at the time of declaring the import of the leased goods. If the rent for leased imported goods is paid in installments, the taxpayer shall, at the time of declaring the import of the leased goods, go through the tax payment formalities based on the first installment of rent payable and pay the corresponding tax; thereafter, when paying the rent in installments, the taxpayer shall go through the tax payment formalities with the Customs no later than the fifteenth day after each rent payment. If the taxpayer fails to declare and pay tax within the prescribed time limit, the Customs shall levy the corresponding tax based on the tax rate and exchange rate for assessment applicable to the goods on the fifteenth day after each rent payment by the taxpayer, and shall also impose a late payment penalty at the rate of 0.05% per day on the amount of tax payable from the day after the deadline for going through the tax payment formalities as prescribed in this paragraph to the date when the taxpayer declares and pays the tax.

Article 32 The taxpayer shall, within 30 days from the expiry of the lease term of the leased imported goods, apply to the Customs for completion of the regulatory formalities and re-export the leased imported goods. If the leased imported goods are to be purchased after lease or the lease is to be renewed, the taxpayer shall go through the relevant formalities with the Customs no later than the thirtieth day after the expiry of the lease term. For leased imported goods to be purchased after lease, the taxpayer shall determine the dutiable value, calculate and declare the tax in accordance with the relevant provisions on determining the dutiable value of imported goods and the tax rate and exchange rate for assessment applicable on the date of going through the tax payment formalities. For leased imported goods with renewed lease, the taxpayer shall submit the renewal contract to the Customs and go through the tax payment formalities in accordance with the relevant provisions of Articles 30 and 31 of these Measures.

Article 33 If the taxpayer fails to go through the relevant formalities for purchasing leased imported goods within the time limit prescribed in paragraph 1 of Article 32 of these Measures, the Customs shall, in addition to determining the dutiable value and assessing the tax payable in accordance with the relevant provisions on determining the dutiable value of imported goods and the tax rate and exchange rate for assessment applicable to the goods on the thirtieth day after the expiry of the lease term, also impose a late payment penalty at the rate of 0.05% per day on the amount of tax payable from the day after the deadline for going through the purchase formalities prescribed in paragraph 1 of Article 32 to the date when the taxpayer declares and pays the tax. If the taxpayer fails to go through the relevant formalities for renewing the lease of leased imported goods within the time limit prescribed in paragraph 1 of Article 32 of these Measures, the Customs shall, in addition to levying the tax payable on the leased imported goods with renewed lease in accordance with the provisions of Article 31 of these Measures, also impose a late payment penalty at the rate of 0.05% per day on the amount of tax payable from the day after the deadline for going through the lease renewal formalities prescribed in paragraph 1 of Article 32 to the date when the taxpayer declares and pays the tax.

Article 34 If the lease of leased imported goods is terminated before the expiry of the lease term, the date of termination of the lease shall be deemed as the date of expiry of the lease term. Section 3: Temporary Import and Export Goods

Article 35 The temporary import and export goods listed in paragraph 1 of Article 37 of the Tariff Law may, within the time limit prescribed by the Customs, be temporarily exempt from tax payment in accordance with the law. If the temporary import and export goods mentioned in the preceding paragraph are not re-exported or re-imported after the expiry of the prescribed time limit, the taxpayer shall apply to the Customs for import, export and tax payment formalities before the expiry of the prescribed time limit, and the Customs shall levy tax in accordance with relevant provisions.

Article 36 For other temporary import and export goods other than those listed in paragraph 1 of Article 37 of the Tariff Law, the taxpayer shall determine the dutiable value in accordance with the relevant provisions on determining the dutiable value of import and export goods and the tax rate and exchange rate for assessment in effect on the date of completing the declaration for the goods, and shall pay tax on a monthly basis, or pay tax when the goods are re-exported or re-imported within the prescribed time limit. The period for tax assessment shall be sixty months. If the period is less than one month but exceeds fifteen days, it shall be calculated as one month; if it does not exceed fifteen days, no tax shall be assessed. The period for tax assessment shall be calculated from the date of release of the goods. The formula for the monthly amount of tax payable shall be: Monthly duty amount = total duty × (1/60); Monthly amount of customs taxes collected on behalf of the state at the import stage = total amount of customs taxes collected on behalf of the state at the import stage × (1/60). If the temporary import and export goods mentioned in paragraph 1 of this Article are not re-exported or re-imported after the expiry of the prescribed time limit, the taxpayer shall apply to the Customs for import, export and tax payment formalities and pay the remaining tax before the expiry of the prescribed time limit.

Article 37 If temporary import and export goods are not re-exported or re-imported within the prescribed time limit, and the taxpayer fails to apply to the Customs for import, export and tax payment formalities before the expiry of the prescribed time limit, the Customs shall, in addition to levying the tax payable in accordance with the provisions, also impose a late payment penalty at the rate of 0.05% per day on the amount of tax payable from the date of expiry of the prescribed time limit to the date when the taxpayer declares and pays the tax.

Article 38 The term "prescribed time limit" as used in Articles 35 to 37 of these Measures shall include the period for extension of the re-export or re-import of temporary import and export goods. Section 4: Goods for Inward and Outward Processing and Repair

Article 39 When going through the import declaration formalities for goods to be repaired upon entry, the taxpayer shall submit the maintenance contract for the goods (or the original export contract containing the warranty clause) to the Customs, and shall provide security to the Customs or have the goods managed by the Customs as bonded goods. Goods to be repaired upon entry shall be re-exported within the time limit prescribed by the Customs. If imported goods for repair require the import of raw materials and spare parts, the taxpayer shall, when going through the import declaration formalities for the raw materials and spare parts, provide security to the Customs or have them managed by the Customs as bonded goods. The imported raw materials and spare parts shall only be used for the repair of the goods to be repaired upon entry, and the remaining raw materials and spare parts after repair shall be re-exported together with the goods to be repaired upon entry.

Article 40 When goods to be repaired upon entry and the remaining imported raw materials and spare parts are re-exported, the Customs shall go through the procedures for refunding the security provided by the taxpayer when the goods to be repaired and the raw materials and spare parts were imported; if the Customs manages them as bonded goods, the relevant provisions on the administration of bonded goods shall apply. If, due to justifiable reasons, goods to be repaired upon entry cannot be re-exported within the time limit prescribed by the Customs, the taxpayer shall explain the circumstances to the Customs before the expiry of the prescribed time limit and apply for an extension for re-export. Article 41: If goods to be repaired upon entry are not re-exported within the time limit prescribed by the Customs (including the extension period, hereinafter the same), the Customs shall manage them in accordance with the tax administration provisions for general import and export goods, and convert the security provided by the taxpayer at the time of import into tax. Article 42: When going through the export declaration formalities for goods to be repaired upon exit, the taxpayer shall submit the maintenance contract for the goods (or the original import contract containing the warranty clause) to the Customs. Goods to be repaired upon exit shall be re-imported within the time limit prescribed by the Customs. Article 43: When going through the import declaration formalities for re-importation of goods to be repaired upon exit, the taxpayer shall submit the maintenance invoice and other relevant materials for the goods to the Customs. Goods to be repaired upon exit shall have their dutiable value determined and import tax calculated in accordance with the relevant provisions on determining the dutiable value of imported goods and the tax rate and exchange rate for assessment in effect on the date of completing the re-import declaration. If, due to justifiable reasons, goods to be repaired upon exit cannot be re-imported within the time limit prescribed by the Customs, the taxpayer shall explain the circumstances to the Customs before the expiry of the prescribed time limit and apply for an extension for re-importation. Article 44: If goods to be repaired upon exit are re-imported beyond the time limit prescribed by the Customs, the Customs shall levy tax in accordance with the tax administration provisions for general import goods. Article 45: When going through the export declaration formalities for goods for outward processing, the taxpayer shall submit the outward processing contract and other relevant materials for the goods to the Customs in accordance with the provisions. Goods for outward processing shall be re-imported within the time limit prescribed by the Customs. Article 46: When going through the import declaration formalities for re-importation of goods for outward processing, the taxpayer shall submit the processing fee invoice, material fee invoice and other relevant materials for the goods to the Customs, and determine the dutiable value, calculate and declare the tax in accordance with the relevant provisions on determining the dutiable value of imported goods and the tax rate and exchange rate for assessment in effect on the date of completing the re-import declaration. If, due to justifiable reasons, goods for outward processing cannot be re-imported within the time limit prescribed by the Customs, the taxpayer shall explain the circumstances to the Customs before the expiry of the prescribed time limit and apply for an extension for re-importation. Article 47: If goods for outward processing are not re-imported within the time limit prescribed by the Customs, the Customs shall manage them in accordance with the tax administration provisions for general import and export goods. Article 48: The term "time limit prescribed by the Customs" as used in Articles 39 to 47 of these Measures shall be determined by the Customs based on the relevant contract provisions and the specific actual circumstances of the goods for repair upon entry and exit and goods for outward processing. Section 5: Returned and Damaged Goods Article 49: If exported goods are re-imported in their original condition within one year from the date of release for export due to quality, specification reasons or force majeure, the taxpayer shall, when going through the import declaration formalities, submit the relevant documents and supporting materials in accordance with the provisions. Upon confirmation by the Customs, no import duties or customs taxes collected on behalf of the state at the import stage shall be levied on the re-imported original exported goods. If imported goods are re-exported in their original condition within one year from the date of release for import due to quality, specification reasons or force majeure, the taxpayer shall, when going through the export declaration formalities, submit the relevant documents and supporting materials in accordance with the provisions. Upon confirmation by the Customs, no export duties shall be levied on the re-exported original imported goods. Article 50: Under special circumstances, with the approval of the directly affiliated Customs, the time limit prescribed in Article 49 of these Measures may be appropriately extended, but shall not exceed three years. If goods are re-imported or re-exported beyond the prescribed time limit, the Customs shall levy tax in accordance with the tax administration provisions for general import and export goods. Article 51: For the goods listed in Item 4 of Article 32 and Item 1 of Article 33 of the Tariff Law, the taxpayer shall, at the time of declaration or within 15 days from the date of release of the goods by the Customs, explain the circumstances to the Customs and provide relevant supporting materials. When the Customs deems it necessary, the taxpayer may be required to provide an inspection certificate issued by a qualified commodity inspection agency regarding the extent of damage to the goods. The Customs shall reduce or exempt the tax based on the actual extent of damage. Chapter 4: Confirmation of the Amount of Duties Article 52: The Customs may, upon application or on its own authority, determine the dutiable value, commodity classification and origin of import and export goods in accordance with the law. When necessary, the Customs may organize testing and inspection, and use the results of testing and inspection as determined by the Customs as the basis for determining the dutiable value, commodity classification and origin. Article 53: The Customs shall conduct risk management on the dutiable value, commodity classification, origin and amount of duties payable of import and export goods, and conduct random audit reviews based on the level of risk, and when necessary, carry out valuation and verification, inspection, verification and audit. The term "valuation and verification" as used in the preceding paragraph refers to the act of verifying the relevant documents and materials or the condition of goods presented for inspection in respect of import and export goods, determining the dutiable value, commodity classification, origin, etc. in accordance with the law, and verifying, evaluating and disposing of tax risks in the course of tax administration based on the analysis and prevention and control of tax risks. Article 54: If the Customs finds that the price declared by the taxpayer or withholding agent for import and export goods does not meet the conditions for transaction value, or that the transaction value cannot be determined, the dutiable value shall be re-assessed in accordance with the relevant provisions on determining the dutiable value of import and export goods. If the Customs finds that the tariff classification number declared by the taxpayer or withholding agent for import and export goods is incorrect, it shall re-determine it in accordance with the relevant rules and provisions on commodity classification. If the Customs finds that the origin declared by the taxpayer or withholding agent for import and export goods is incorrect, it shall determine it in accordance with the relevant provisions on customs origin management by reviewing the certificate of origin provided by the taxpayer or withholding agent, inspecting the goods or reviewing other relevant documents. If the Customs finds that the application for duty reduction or exemption submitted by the taxpayer or withholding agent or the content declared does not comply with the relevant provisions on duty reduction or exemption, it shall levy tax in accordance with the provisions. If the taxpayer or withholding agent violates customs regulations and is suspected of false declaration or under-declaration, it shall be dealt with in accordance with the relevant provisions. Article 55: Within three years from the date of payment of tax by the taxpayer or withholding agent or from the date of release of the goods, the Customs shall have the right to confirm the amount of duties payable by the taxpayer or withholding agent. If the amount of duties confirmed by the Customs is inconsistent with the amount of tax declared by the taxpayer or withholding agent, the Customs shall issue a notice of confirmation of the amount of duties to the taxpayer or withholding agent. Article 56: The period for the Customs to confirm the amount of duties payable shall exclude the period of audit, investigation, inquiry, and assistance in tax verification overseas. Chapter 5: Refund, Supplementary Collection and Retroactive Collection of Duties Section 1: Tax Refund Article 57: If the Customs finds that tax has been overpaid, it shall promptly issue a notice of confirmation of the amount of duties to notify the taxpayer. If the tax needs to be refunded, the taxpayer may go through the relevant refund formalities within three months from the date of receipt of the notice of confirmation of the amount of duties. Article 58: If the taxpayer finds that tax has been overpaid, it may, within three years from the date of payment of tax, apply to the Customs in writing for a refund of the overpaid tax, including but not limited to the following circumstances: (1) Bulk import and export goods have short-shipment and have been released after duty payment, and the consignor, carrier or insurer of the goods has refunded or compensated the corresponding payment for the short-shipment portion; (2) Import and export goods are damaged, have poor quality or do not conform to specifications, or there is a shortage of goods other than that specified in Item 1 of this Article, and the consignor, carrier or insurer of the import and export goods has compensated the corresponding payment; (3) Goods that have been duty-paid are ordered by the Customs to be returned or are supervised and destroyed. Article 59: Under any of the following circumstances, the taxpayer may, within one year from the date of payment of tax, apply to the Customs in writing for a refund of tax: (1) Imported goods that have been duty-paid are re-exported in their original condition within one year due to quality, specification reasons or force majeure; (2) Exported goods that have been duty-paid are re-imported in their original condition within one year due to quality, specification reasons or force majeure, and the domestic taxes refunded due to export have been re-paid; (3) Exported goods that have been duty-paid are not shipped for export for any reason, and cancellation of export is declared. Article 60: When a taxpayer applies to the Customs for a refund of tax, the Customs shall review the taxpayer's application for tax refund after receiving it. If the application materials submitted by the taxpayer are complete and conform to the prescribed form, the Customs shall accept the application, and the date of receipt of the application materials by the Customs shall be deemed as the date of acceptance; if the application materials submitted by the taxpayer are incomplete or do not conform to the prescribed form, the Customs shall, within five working days from the date of receipt of the application materials, inform the taxpayer of all the contents that need to be supplemented in one go, and the date of receipt of all the supplemented application materials by the Customs shall be deemed as the date of acceptance of the tax refund application by the Customs. If the taxpayer applies for a tax refund in accordance with the provisions of Article 58 of these Measures, the Customs may, when it deems it necessary, require the taxpayer to provide an inspection certificate issued by a qualified commodity inspection agency regarding the poor quality, non-conformity with specifications, damage or shortage of the original imported or exported goods, or other relevant supporting documents. The Customs shall, within 30 days from the date of acceptance of the tax refund application, verify the facts and issue a notice of confirmation of the amount of duties to notify the taxpayer to go through the refund formalities or make a decision not to grant the refund. The taxpayer shall go through the refund formalities within three months from the date of receipt of the notice of confirmation of the amount of duties. If the taxpayer waives the refund of tax or interest, it shall submit a written statement to the Customs. Article 61: When going through the refund formalities, the Customs shall fill out a revenue refund certificate and handle it in accordance with the following provisions: (1) When refunding tax, the interest generated on the overpaid portion shall also be refunded, and the interest to be refunded shall be calculated at the demand deposit interest rate published by the People's Bank of China on the date the Customs issues the revenue refund certificate. The period for calculating the interest to be refunded shall be from the date of payment of tax by the taxpayer or withholding agent to the date of issuance of the revenue refund certificate by the Customs. (2) If the customs taxes collected on behalf of the state at the import stage have been credited against tax payable or have been refunded, such tax shall not be refunded unless otherwise provided by the state. (3) The late payment penalties that have been collected shall not be refunded. The refund of tax and interest involving the release of funds from the state treasury shall be handled in accordance with the provisions of laws and administrative regulations on state treasury administration and the specific implementing measures stipulated in relevant rules and regulations. Section 2: Supplementary Collection and Retroactive Collection of Duties Article 62: After the release of import and export goods, if the Customs finds that the tax has been under-collected, it shall collect the supplementary tax from the taxpayer or withholding agent within three years from the date of payment of tax; if the Customs finds that the tax has been omitted, it shall collect the supplementary tax from the taxpayer or withholding agent within three years from the date of release of the goods. Article 63: If the tax has been under-collected due to a violation by the taxpayer or withholding agent, the Customs shall retroactively collect the tax within three years from the date of payment of tax; if the tax has been omitted due to a violation by the taxpayer or withholding agent, the Customs shall retroactively collect the tax within three years from the date of release of the goods. In addition to retroactively collecting the tax in accordance with the law, the Customs shall also impose a late payment penalty at the rate of 0.05% per day on the under-collected or omitted tax from the date of payment of tax or release of the goods to the date of discovery of the violation. If the tax on goods under customs supervision has been under-collected or omitted due to a violation by the taxpayer or withholding agent, the Customs shall retroactively collect the tax within three years from the date on which the taxpayer or withholding agent should have paid the tax, and shall impose a late payment penalty at the rate of 0.05% per day on the under-collected or omitted tax from the date on which the tax should have been paid to the date of discovery of the violation. The term "date on which the tax should have been paid" as used in the preceding paragraph refers to the date on which the violation by the taxpayer or withholding agent occurred; if the date of the violation cannot be determined, the date of discovery of the violation by the Customs shall be deemed as the date on which the tax should have been paid. Article 64: When the Customs collects supplementary tax or retroactively collects tax, it shall issue a notice of confirmation of the amount of duties. The taxpayer or withholding agent shall pay the tax within fifteen days from the date of receipt of the notice of confirmation of the amount of duties. If the taxpayer or withholding agent fails to pay the supplementary tax within the time limit prescribed in the preceding paragraph, a late payment penalty at the rate of 0.05% per day shall be imposed from the day after the expiry of the prescribed time limit. Article 65: According to the relevant provisions of Articles 31, 33, 37 and 63 of these Measures, if a late payment penalty needs to be imposed in addition to the tax collection due to a violation by the taxpayer or withholding agent, and if the taxpayer or withholding agent fails to pay the tax within the prescribed fifteen-day payment period, the Customs shall, in accordance with the provisions of Article 20 of these Measures, separately impose a late payment penalty on the overdue tax from the day after the expiry of the payment period to the date of full payment of the tax. Chapter 6: Tax Security Article 66: Under any of the following circumstances, if the taxpayer or withholding agent requests the Customs to release the goods earlier, it shall provide sufficient tax security to the Customs based on the preliminarily determined amount of duties payable: (1) The dutiable value, commodity classification, origin, etc. of the import and export goods have not yet been determined; (2) The customs declaration documents relating to the determination of the amount of duties payable on the goods have not yet been provided; (3) The goods are subject to provisional anti-dumping measures or provisional countervailing measures; (4) The application of retaliatory tariffs or reciprocal tariff measures has not yet been determined; (5) The conditions for handling tax security for duty-reduced or duty-exempted goods are met; (6) The formalities for deferring the payment of tax are being processed; (7) Consolidated tax payment business is being handled; (8) When the taxpayer or withholding agent declares the import or export of replaced goods without compensation due to damage, poor quality or non-conformity with specifications, the original imported goods have not yet been returned out of the country or have not yet been abandoned to the Customs for disposal, or the original exported goods have not yet been returned to the country. Article 67: Unless otherwise provided, the period of tax security shall generally not exceed six months. If an extension is required under special circumstances, it shall be approved by the Customs. Tax security shall generally be in the form of a cash deposit, a guarantee issued by a bank or non-bank financial institution, or a tariff guarantee insurance policy, unless otherwise provided. The guarantee issued by a bank or non-bank financial institution and the tariff guarantee insurance policy shall be in the form of joint and several liability guarantees, and the guarantee period shall not be shorter than the period of tax security approved by the Customs. Article 68: The Customs shall, within five working days from the date of receipt of an application for tax security or an application for amendment of tax security from the taxpayer or withholding agent, review the application and decide whether to accept the security. A tax security that meets the provisions shall become effective from the date on which the Customs decides to accept it. If it does not meet the provisions, the Customs shall notify the taxpayer or withholding agent in writing of the non-acceptance and explain the reasons. Article 69: If the taxpayer or withholding agent fulfills its tax obligation within the security period, the Customs shall complete the procedures for releasing the tax security within five working days from the date on which the taxpayer or withholding agent fulfills its tax obligation. If the taxpayer or withholding agent fails to fulfill its tax obligation within the security period, the Customs shall convert the security into tax in accordance with the law. If the security is in the form of a cash deposit, the Customs shall complete the procedures for converting the cash deposit into tax within five working days from the date of expiry of the security period. If the security is in the form of a guarantee issued by a bank or non-bank financial institution or a tariff guarantee insurance policy, the Customs shall, within six months from the date of expiry of the security period and not exceeding the guarantee period of the guarantee or insurance policy, require the guarantor to fulfill the tax obligation. If the guarantor fulfills the tax obligation on behalf of the taxpayer or withholding agent, the taxpayer or withholding agent shall cooperate with the Customs in promptly going through the relevant formalities. Article 70: Applications for security for specific customs transactions listed in Article 5 of the "Regulations of the People's Republic of China on Customs Affairs Security," if security is provided to the Customs based on the amount of tax that may be borne, shall be handled with reference to the relevant provisions of these Measures. Chapter 7: Tax Enforcement Article 71: If the taxpayer shows obvious signs of transferring or concealing its dutiable goods or other property within the prescribed tax payment period, or if there are other circumstances that may lead to the risk of being unable to pay the tax, the Customs may order the taxpayer to provide security. If the taxpayer fails to provide security as required by the Customs, with the approval of the Director of the directly affiliated Customs or the Director of the subordinate Customs authorized thereby, the Customs may implement the following compulsory measures: (1) Notify in writing the banking financial institution to freeze the taxpayer's deposits and remittances in an amount equivalent to the amount of tax payable; (2) Seal up or seize the taxpayer's goods or other property with a value equivalent to the amount of tax payable. If the taxpayer pays the tax within the prescribed tax payment period, the Customs shall immediately lift the compulsory measures. Article 72: The Customs may make public announcements regarding the arrears of tax of taxpayers and withholding agents. If the taxpayer has not paid the tax and late payment penalties in full and has not provided security to the Customs, with the approval of the Director of the directly affiliated Customs or the Director of the subordinate Customs authorized thereby, the Customs may, in accordance with the provisions, notify the immigration administration authorities to take measures to restrict the exit of the taxpayer or its legal representative. Article 73: If the taxpayer or withholding agent fails to pay or remit the tax within the prescribed tax payment period, the Customs shall order the taxpayer or withholding agent to pay the tax within three months from the date of expiry of the tax payment period; if the tax is still not paid after three months, the Customs shall issue a demand notice to the taxpayer or withholding agent. If the taxpayer or withholding agent fails to pay the tax and late payment penalties within ten days from the date of service of the demand notice without justifiable reasons, with the approval of the Director of the directly affiliated Customs or the Director of the subordinate Customs authorized thereby, the Customs may implement the following compulsory enforcement measures: (1) Notify in writing the banking financial institution to transfer the taxpayer's deposits and remittances in an amount equivalent to the amount of tax payable; (2) Seal up or seize the taxpayer's or withholding agent's goods or other property with a value equivalent to the amount of tax payable, and auction or sell the sealed up or seized goods or other property in accordance with the law, and use the proceeds from the auction or sale to satisfy the tax, with the remaining portion returned to the taxpayer or withholding agent. When implementing tax compulsory enforcement measures, the Customs shall also enforce the late payment penalties that have not been paid, with the deadline for calculating late payment penalties being the date on which the Customs makes the decision on tax compulsory enforcement. Article 74: Under any of the following circumstances, the Customs shall suspend tax compulsory enforcement: (1) The taxpayer or withholding agent has genuine difficulty in paying the tax or temporarily has no capacity to pay; (2) A third party asserts rights over the subject matter of tax compulsory enforcement with valid reasons; (3) Enforcement may cause losses that are difficult to remedy, and suspension of tax compulsory enforcement does not harm the public interest; (4) Other circumstances under which the Customs deems suspension of enforcement necessary. When the circumstances for suspension of tax compulsory enforcement disappear, the Customs shall resume enforcement. If there is no obvious social harm, the taxpayer or withholding agent is genuinely unable to pay the tax, and the suspension of enforcement has lasted for three years without resumption, the Customs shall no longer enforce. Article 75: Under any of the following circumstances, the Customs shall terminate tax compulsory enforcement: (1) The taxpayer or withholding agent has died or been terminated, and there is no inheritance or property available for enforcement, nor any successor to the obligation; (2) The subject matter of enforcement has been destroyed; (3) The administrative decision on which the enforcement is based has been revoked; (4) Other circumstances under which the Customs deems termination of enforcement necessary. Article 76: Tax preservation measures and tax compulsory enforcement measures not provided for in these Measures shall be implemented in accordance with the "Administrative Compulsory Law of the People's Republic of China" and relevant laws and administrative regulations. Chapter 8: Supplementary Provisions Article 77: The administration of collection of tonnage dues, import and export taxes in the Hainan Free Trade Port, anti-dumping duties, countervailing duties and safeguard measure duties shall be handled in accordance with relevant laws, administrative regulations and relevant provisions; if not provided for, these Measures shall apply. The administration of collection of taxes for cross-border e-commerce retail imports and for returned goods exported through cross-border e-commerce shall be handled in accordance with relevant provisions; if not provided for, these Measures shall apply. Article 78: The tax administration of bonded goods, goods entering and leaving special customs supervision areas and bonded supervision premises, and import and export duty-reduced or duty-exempted goods shall be handled in accordance with the provisions of these Measures. Matters not provided for in these Measures shall be handled in accordance with relevant laws, administrative regulations and relevant provisions. Article 79: For imported goods involving taxable royalties, the administration of import tax collection shall be handled in accordance with relevant laws, administrative regulations and relevant provisions. Article 80: The Customs shall establish a taxpayer management system at the place of registration, strengthen tax source management, optimize tax services, and build a harmonious and cooperative relationship between Customs and enterprises in terms of tax collection and payment. Article 81: Violations of these Measures that constitute acts in violation of customs regulatory provisions or smuggling acts shall be punished in accordance with the "Customs Law," the "Tariff Law," the "Implementing Regulations of the People's Republic of China on Customs Administrative Penalties" and other relevant laws and administrative regulations. If a crime is constituted, criminal liability shall be pursued in accordance with the law. Article 82: The documents referred to in these Measures shall be separately formulated and issued by the General Administration of Customs. Article 83: These Measures shall be interpreted by the General Administration of Customs. Article 84: These Measures shall take effect on December 1, 2024. The "Measures of the People's Republic of China on the Administration of Collection of Duties on Import and Export Goods" promulgated by Decree No. 124 of the General Administration of Customs on January 4, 2005, and amended by Decree No. 198 on November 26, 2010, Decree No. 218 on March 13, 2014, Decree No. 235 on December 20, 2017, and Decree No. 240 on May 29, 2018, as well as the "Interim Measures of the People's Republic of China on Customs Tax Preservation and Compulsory Measures" promulgated by Decree No. 184 on August 19, 2009, shall be simultaneously repealed.