Custom Duty Reduction or Exemption in China
I. Application Procedure for Custom Duty Reduction or Exemption
i- Pre filing of the applicant
ii- examination and approval by the Customs
iii- pre-filing of custom duty reduction or exemption for the applicants
iv- examination and approval by Customs for custom duty reduction or exemption
v- issuing of the Custom Duty Imposition/Exemption Certificate for Import/Export Goods by Customs
vi- declaration for importation
II. Time limit for Application of Custom Duty Reduction or Exemption
For applicant
The applicant shall declare to Customs with complete and valid papers and documents for examination and approval formalities for duty reduction or exemption before importing the goods.
For Customs acceptation
Customs shall file the documents and examine and approve the duty reduction or exemption within 10 working days upon receipt of the application with the condition that the electronic data is doubtless and all the papers and documents are complete and valid.
III. Compliance with Administrative Regulation
ⅰ. Application for custom duty reduction or exemption granted for
goods must be done for applicant himself. Applicant shall not apply for duty reduction or exemption for any other party.
ii. Goods granted with custom duty reduction or exemption shall be under Customs supervision and control.
iii. During the period of Customs supervision and control, no applicant may sell, transfer, rent, mortgage, impawn, shift to other use, or change the use place, the user or the use way of goods without Customs permission
iv. Customs shall not accept the application for duty reduction or exemption if the applicant does not apply for custom duty reduction or exemption before importing or exporting goods without any special reason.
v. Applicant shall bear liabilities for losing the Custom Duty Imposition/Exemption Certificate.
vi. With the approval by the custom for modifications (including modifications of character of the applicant, transfer of equity, name of the applicant, legal address, time limit of cooperation, and list of equipment), applicant which have been filed for duty reduction or exemption shall apply for modifying the file recorded before.
vii. Applicant shall apply with the Custom in advance for permission when the ownership of the goods under duty reduction or exemption are changing because of merger and acquisition, assignment of equity, liquidation, bankruptcy or other reasons for termination of the applicant.
viii. Customs may make audits on account books, account vouchers, declaration forms and other relevant data as well as goods of the enterprises and units directly related to import and export activities during the period of Customs supervision and control over goods granted with duty reduction or exemption and three years afterwards.
ix. Customs supervision and control will be stopped automatically when the time limit of Customs supervision and control are over
Periods of Customs supervision and control over goods under duty reduction or exemption
i-Vessels, aircrafts: 8 years
ii-Motor vehicles: 6 years
iii- Other goods: 5 years
