The Measures have been promulgated on March 1, 2017 and will be effective on April 1, 2017. In order to convenient our clients, potential clients and cooperators in operations, we hereby translate the new articles for your reference.
Article 1
For the purposes of correctly determining the origin of imported goods under the special preferential tariff treatments to the least developed countries that have established diplomatic relations with China and promoting the economic trade between China and the relevant countries, these Measures are formulated in accordance with the provisions of the Customs Law of the People’s Republic of China and the Regulations of the People’s Republic of China on the Origin of Imported and Exported Goods.
Article 2
These Measures shall apply to the goods that are imported from the least developed countries that have established diplomatic relations with China (hereinafter referred to as the “Beneficiary Countries”) under items of enjoying special preferential tariff treatment.
Article 3
Where the imported goods meet one of the following conditions, the countries of origin of such imported goods shall be deemed as the Beneficiary Country.
1. wholly obtained or produced in a Beneficiary Country; or
2. completely produced by using the original materials in accordance with the requirement provided in these Measures within the territory of the Beneficiary Countries; or
3. not wholly obtained or produced in a Beneficiary Country, but the substantial change of such goods is finalized in such Beneficiary Country.
The term “substantial change” as mentioned in Item 3 of Paragraph 1 of Article 3 shall apply to the determination of standards as provided in Article 5 and Article 6 hereof.
The goods which are originating from a Beneficiary Country and are directly transported from such Beneficiary Country into China may, in accordance with the regulations of these Measures, apply for enjoying the corresponding special preferential tariff as provided in the Import and Export Tariff Regulations of the People’s Republic of China (hereinafter referred to as the “Tariff Regulations”).
Article 4
The term of the goods “wholly obtained or produced from a Beneficiary Country” as mentioned in Item 1 of Article 3 of the Measures refers to:
1. the live animals borne and raised in such Beneficiary Country;
2. the products obtained from the animals of such Beneficiary Country as mentioned in Item 1 of this Article;
3. the plants or their products harvested, picked or collected from such Beneficiary Country;
4. the products obtained from hunting or fishing in such Beneficiary Country;
5. the fish, shellfish and other aquatic products obtained from the offshore waters, which may be developed by such Beneficiary Country under its applicable domestic laws in accordance with the relevant international convention entered by it, by vessels registered in such Beneficiary Country legally flowing the flag of such Beneficiary Country,
6. the products obtained from processing the products as listed in Item 5 of this Article on the processing vessels registered in such Beneficiary Country legally flowing the flag of such Beneficiary Country;
7. the mineral products and other natural materials exploited or extracted from such Beneficiary Country, or products (other than fish, selfish and other aquatic products) obtained from the offshore waters, seabed and subsoil which may be developed by such Beneficiary Country under its applicable domestic laws in accordance with the relevant international convention entered by it;
8. the waste and old articles that are generated and gathered in the course of consumption in such Beneficiary Country which can only be used for the recycling of raw materials;
9. the waste and piecemeal materials that are generated in the course of production in such Beneficiary Country and that can only be used as raw materials of recycling; and
10. the products obtained from processing the products as listed in Items 1 to 9 of this Article within such Beneficiary Country.
Article 5
Unless otherwise provided in the Specific Rules of Origin for Goods of the Least Developed Countries That Have Established Diplomatic Relations with China, the manufactured or processed products from using materials not originating from the Beneficiary Country within the Beneficiary Country shall be deemed as originating goods of the Beneficiary Country despite the four digital of tax classification as provided in the Tariff Regulations of such products have changed.
Where the goods are manufactured or processed by using the non-originating materials which are not satisfied with the requirements provided in paragraph 1 of this Article, but according to the Agreement on Customs Valuation, the finalized transaction price of the non-originating material is not more than 10% of the price of the goods, in the premises that those goods are in compliance with other applicable regulations of these Measures, such goods shall still be deemed as the originating goods of the Beneficiary Country.
Article 6
Unless otherwise provided in the Specific Rules of Origin for Goods of the Least Developed Countries That Have Established Diplomatic Relations with China, where the goods are produced by using materials not originating from the Beneficiary Country within the Beneficiary Country, and its regional value is not lower than 40% of the price of the goods, such goods shall be deemed as originating goods of such Beneficiary Country.
The value of the goods in the first paragraph of this Article shall be calculated according to the following methods:
Regional value component = (price of goods – non-originating material price) / price of goods * 100%
Among which, the “price of goods” refers to price adjusted based on the FOB price in accordance with the Agreement on Customs Valuation. “Non-originating material price” refers to the CIF price determined in accordance with the Agreement on Customs Valuation including the price of material of unknown origin. The price of Non-originating materials acquired by the manufacturer in the territory of the Beneficiary Country shall be in accordance with the transaction price determined according to the Agreement on Customs Valuation, excluding the freight, insurance premiums, packaging cost and any other expenses generated in the course of transportation from the supplier’s warehouse to the place where the manufacturer locates.
Article 7
Where the goods or materials originated in China are used for producing another goods within the territory of the Beneficiary Country, such goods or materials shall be regarded as the originating goods or materials of the Beneficiary Country.
Where a Beneficiary Country is one of the members of a specific regional group, and the goods or materials originated in other beneficiary countries in that group are used for producing other goods within the territory of the Beneficiary Country, such goods or material used can be regarded as the originating goods or materials of the Beneficiary Country.
Article 8
The following minor processing or treatment shall not have any impact on the determination of the origin of the goods:
1. Disposals to ensure that the goods are in good condition during transportation or storage; or
2. Assemble the parts and components into a complete product, or simply disassemble the product into parts; or
3. Change packaging, spin off or assemble packaging; or
4. Washing, cleaning, dust removal, removal of oxides, degreasing, de painting and removal of other coatings; or
5. Textile ironing or pressing; or
6. Simple painting and polishing process; or
7. The decladding of grain and rice, partly or completely bleaching, polishing, and glazing; or
8. Color or flavor the sugar, the process of formation of sugar; completely or partially crush the crystal sugar to powder; or
9. Remove the peel, stone and hull of fruit, nuts, and vegetables; or
10. Sharpening, simple grinding or simple cutting; or
11. Filtering, screening, selection, classification, classification, matching (including a combination of a set of items), slitting, bending, winding, expansion; or
12. Simple bottling, canning, pot, bag, packing or packing box, fixed on the cardboard or wood and other simple packaging process; or
13. To paste or print marks, labels, logos, and other similar marks on the product or its packaging; or
14. A simple mixture of similar or different products; a mixture of sugar and other materials; or
15. Test or calibration; or
16. Dilute with water or other substances, without substantially changing the nature of the goods; or
17. Dry, salt (or saline), refrigerated, frozen; or
18. Animal slaughter;
19. A combination of two or more processes in Item 1 to Item 18.
Article 9
For the complete sets of goods as provided in the general classification rule III of the Tariff Regulation, if all goods are originated from the same Beneficiary Country, such complete sets of goods shall be originated from such Beneficiary Country; if part of the goods are not originated from such Beneficiary Country, but the percentage determined in accordance with Article 6 hereof is not exceeding 15% of the price of the complete sets of goods, such complete sets of goods shall still be deemed as originating from such Beneficiary Country.
Article 10
In the determination of the origin of goods, the origin of the following materials or articles as used in the course of production of goods, which do not constitute the material composition of goods or constituents of goods, shall not affect the determination of the original of goods:
1. fuel, energy, catalyst and solvent;
2. equipments, devices and appliance used for testing or examining the goods;
3. gloves, glasses, shoes, cloth, safety equipments and appliances;
4. tools, models and moulds;
5. spare parts and materials used for maintaining equipments, plants and building;
6. lubricant, oil (grease), synthetic materials and other materials used in the production or used for operating equipments and maintaining the construction of plants; and
7. any other goods used in the course of production of goods, which do not constitute the constituent of such goods but can reasonably show that they have participate in the course of production of such goods.
Article 11
Where the standards for applicable tariff code for good are changed, in the determination of the origin of goods, the origin of the packages, packing materials and containers that are declared and uniformly classified into the same category of the goods under the Tariff Regulations and the origin of the accessories, spare parts, tools and introductory materials normally equipped that are declared and uniformly classified into the same category of the goods under the Tariff Regulations, which are not separately invoiced, shall not impact the determination of origin of goods.
Where the standard of regional value component applies to the goods, in the calculation of the regional value component of goods, the price of the packages, packing materials and containers that are declared and uniformly classified into the same category of the goods under the Harmonized System and the price of the accessories, spare parts, tools and introductory materials normally equipped as well as the specification materials shall be calculated.
Article 12
The term “directly transported” as mentioned hereof refers to the direct transport of originating goods of the Beneficiary Country from such Beneficiary Country to China without passing by any other country or region other than China and such Beneficiary Country (hereinafter referred to as the “Other Country or Region”).
Where the originating goods of the Beneficiary Country are transported to China via Other Country or Region, regardless of whether any shift of transport vehicle is made during the transport or whether there is any interim storage made, it shall be deemed as “directly transported” if the following conditions are met:
1. where the goods do not enter into the trade or consumption field of Other Country of Region;
2. where such goods did not have any other treatment other than loading and unloading or other treatments necessary for keeping the goods in good condition when passing Other Country or Region; and
3. where the transport of such goods is under regulation and supervision of the customs of such Country or Region.
Under the circumstance as provided in Paragraph 2 of this Article, the stay time of relevant goods in Other Country or Region shall not exceed six months.
Article 13
Where the customs have any evidence to prove that the imported goods are suspected of circumventing these Measures, such imported goods may not enjoy special preferential tariff treatment.
Article 14
The consignee of imported goods or the agent thereof shall complete the Form for Declaration of Imported Goods of the Customs of the People’s Republic of China within 14 days after the date of entry reported by the conveyance to state the application of preferential tariff, and simultaneously submit the following documents, except as otherwise provided by the General Administration of Customs:
1. The certificate of origin in conformity with the provisions of these Measures and in the period of validity (see Annex 1 for the format) or declaration of origin (see Annex 2 for the format);
2. The commercial invoice of the goods; and
3. The transport certificate of the goods during the whole course.
Where the goods are transported to China via Other Country or Region, the certificates issued by the Other Country or Region or other relevant documents confirmed by the Customs shall be submitted additionally.
Where the Customs have received the certificate of origin of the Beneficiary Country or the electronic data of certificate through the relevant information exchange system, the consignee of import goods or the agent does not need to submit the corresponding paper documents for the originating goods of such Beneficiary Country.
Where the transport documents submitted by the consignee of import goods or the agent satisfy the direct transportation requirements in Item 3 of the first paragraph of this Article, there is no need to submit the documents listed in the second paragraph of this Article.
Article 15
Except as otherwise provided by the General Administration of customs, where the country of origin of the imported goods is declared as the Beneficiary Country, the consignee of import goods or the agent does not submit the valid certificates of origin or declaration of origin during the import declaration, or the customs does not receive the electronic data mentioned in the third paragraph of Article 14, supplementary declaration shall me made with the Customs as to whether such imported goods are qualified as originated from Beneficiary Country before releasing the goods (see Appendix 3 for the format).
Where the consignee of import goods or the agent in accordance with the provisions of the preceding paragraph has made supplementary declaration as to whether such imported goods are qualified as originated from Beneficiary Country and provided the corresponding tax guarantee in accordance with the law, the customs shall handle the import formalities, except as otherwise provided by the law or administrative regulations that such guarantee shall be forbidden. For those that have provided the tax guarantee equals to the highest amount of tax for the early release of goods, the guarantee for ensuring whether the goods have the qualification of originating may not be provided separately.
Where the consignee of import goods or the agent does not in accordance with the relevant provisions to complete the import declaration with the Customs, or during the import declaration, the consignee or the agent neither state to apply the preferential tariff rate provided in the Tariff Regulations, nor make supplementary declaration to the Customs as to whether the imported goods are qualified as originated from the Beneficiary Country, relevant imported goods shall not apply the preferential tariff rate in the Tariff Regulation.
Where the consignee of imported goods or their agents apply to the Customs for the application of the preferential tariff rate provided in the Tariff Regulations after the release of goods, the tax already levied shall not be adjusted.
Article 16
The certificate of origin submitted to the customs by the consignee of imported goods or the agent thereof shall simultaneously meet the following conditions:
1. it shall be issued within no more than 5 days after the export of goods by the Issuing Institution designated by the Beneficiary Country;
2. it shall be made in the format as provided in the appendix 1 of these Measures and completed in English;
3. it shall meet such security requirements as being in consistent with the stamp specimen of the Issuing Institution as notified by the Beneficiary Country to the customs of China and in consistent with the stamp and signature of the Customs or the administrative organ of the port;
4. the goods or any of them listed thereon shall be the imported goods of the same batch;
5. it shall have unrepeated and valid serial number of the certificate of origin; and
6. it shall state the basis for determining the goods have the qualifications for origin.
The certificate of origin shall be valid within one year upon the date of issuance.
Article 17
Where the Customs has ruled and confirmed that the country of origin of imported goods shall be the Beneficiary Country according to the application submitted by the consignee of the imported goods or its agent, and where such ruling is in a valid state, and there is no change as to the basis or facts of such ruling, the consignee of imported goods or its agent may submit the declaration of origin to Customs during the import of goods under such ruling and state to apply the preferential tariff rate according to the Tariff Regulations.
The declaration of origin submitted to the Customs by the consignee of imported goods or its agents shall simultaneously meet the following conditions:
1. it shall be made in the format as provided in the appendix 2 of these Measures and completed in Chinese;
2. it shall be printed out, completed and correctly signed by the consignee of imported goods or its agent; and
3. one declaration of origin can only correspond to one ruling.
The declaration shall be valid within one year upon the date of signing.
Article 18
When having any doubt upon the authenticity of the certificate of origin or whether the concerned goods are originated from relevant Beneficiary Country, or having any other doubt under other provisions hereof, the General Administration of Customs may, directly or via the economic and commercial counselor’s office of the embassy or consulate of China based in the corresponding Beneficiary Country, require the customs of the Beneficiary Country or the original issuing authority of the certificate of origin to conduct verification, and to give it a reply within 180 days as of the receipt of the verification request. Whenever necessary and upon consent of the relevant competent authorities of the Beneficiary Country, the General Administration of Customs may dispatch personnel to visit the location of the exporter or supplier in the Beneficiary Country, and make onsite survey over the review procedures of the competent institutions of the Beneficiary Country.
When having any doubt on the declaration of origin submitted by the consignee of imported goods or its agent, the Customs may conduct verification on such consignee or its agent who issued the declaration, and such consignee or its agent who is under verification shall provide written reply to the Customs within 180 days as of the receipt of the verification request.
In case of failure to receive any reply within the said period, the goods may not enjoy the special preferential tariff treatments.
During the period of waiting for the result of verification of the certificate of origin by the Beneficiary Country, the customs may, pursuant to the application of the consignee of imported goods or the agent thereof, legally choose to release the goods after it charges a sum of security equivalent to the amount of tariff calculated according to the most-favored nation rate, general tariff or other tariff rate applicable to the goods, and it shall handle the entry formalities in accordance with the relevant provisions and collect the corresponding customs statistics. After the customs of the exporting country or the issuing authority of the certificate of origin completes the verification, the entry customs shall, according to the verification result, promptly handle the formalities for refunding the security or converting the security to the import tariff, and correct the relevant statistic data accordingly.
In case of the imported goods restricted by the importing country or subject to violation of laws, the entry Customs shall not release them before completion of the review of the certificate of origin.
Article 19
Under any of the following circumstances, the consignee of the imported goods or its agent may apply to the Customs for tax relief within the time limit for tax guarantee approved by the Customs and within 1 year upon the date of import of goods:
1. the consignee of imported goods or its agent has, in accordance with the provisions in these Measures, made supplementary declaration to the Customs and submitted valid certificates of origin, declaration of origin and other certificates according to Article 14 of these Measures; or
2. the Customs has received the electronic data provided in Item 1 of the first paragraph and the second paragraph of Article 14 of these Measures.
Article 20
Where the dutiable value of the same batch of imported goods originated from the Beneficiary Country is not more than 6000 yuan as confirmed by the Customs in accordance with the law, the certificates of origin or declaration of origin may be exempted from submission.
The provisions of the preceding paragraph shall not apply to the import of goods in one or more times in order to circumvent the provisions of these Measures.
Article 21
Where the certificate of origin is theft, lost or damaged, and unused, the consignee of imported goods or the agent thereof may demand the exporter of such imported goods to apply to the original Issuing Institution of the Beneficiary Country for issuance of the approved duplicate of the certificate of origin within the term of the original certificate of origin. Such duplicate shall be indicated in English on its remark column that “the approved authentic copy of the original of the certificate of origin (No.: ____, Date: ____)”. Upon submittal of the approved duplicate of the certificate of origin to the customs, the original certificate of origin will become invalidated. Where the original certificate of origin has been used, the approved duplicate of the certificate of origin shall be invalid.
Article 22
Under any of the following circumstances, the certificate of origin may be re-issued within one year upon the date of export of goods:
1. where the certificate of origin did not issue at the time of export of goods or within five days upon the date of export of such goods due to force majeure; or
2. where the authority institution is convinced that the certificate of origin has been issued, but the certificate of origin has not been accepted at the time of import due to fail to comply with the provisions of Article 16 hereof.
The re-issued certificate of origin shall indicate the wording of “re-issuance” in English on it. In case of circumstance under Item 1 of Paragraph 1 hereof, the reissued certificate shall be effective within one year upon the date of actual export of goods; and in case of circumstance under Item 2 of Paragraph 1 hereof, the term of the reissued certificate shall be consistent with the term of the original certificate of origin.
Article 23
Under any of the following circumstances, the special preferential tariff shall not apply to the imported goods:
1. where the imported goods does not qualify the requirement as being originated from the Beneficiary Country;
2. where the consignee of imported goods or the agent thereof does not submit the valid certificate of origin or declaration of origin, nor make supplementary declaration on whether the imported goods have the qualifications for origin of the Beneficiary Country when declaring the import of goods;
3. the certificate of origin or the declaration of origin does not comply with the provisions of these Measures;
4. where the goods listed in the certificate of origin is inconsistent with the actual imported goods;
5. where, within 180 days upon the date of receipt of the request for verification of the origin by the Customs or Issuing Institution of the Beneficiary Country, the entry customs receive no reply or result from the customs or Issuing Institution of the Beneficiary Country, or such reply or result does not contain information sufficient to confirm the authenticity of the certificate of origin or the authentic origin of goods;
6. where, within 180 days upon the date of receipt of the request of verification of the origin by the consignee of imported goods or its agent, the Customs receive no reply or result from the consignee of imported goods or its agent, or such reply or result does not contain information sufficient to confirm the authenticity of the certificate of origin or the authentic origin of goods; or
7. where the consignee of imported goods or the agent thereof have any other activity that is inconsistent with the provisions hereof.
Article 24
Customs shall be obligated to keep in confidential any trade secret they have known under these Measures. Without the consent of the consignee of the imported goods, the customs may not divulge such trade secret or use it for purposes other than those provided herein, however, unless there is otherwise provided in laws, regulations and relevant judicial interpretations.
Article 25
Anyone who violates the Measures and constitutes smuggling or violation of the regulatory provisions of the Customs, or has any other activity in violation of the Customs Law shall be punished in accordance with the Customs Law and the Implementing Regulations of the People’s Republic of China on Customs Administrative Penalties. If any crime is constituted, he shall be prosecuted for the criminal liabilities according to law.
Article 26
The following terms mentioned herein shall have the following meanings:
“Beneficiary Country” refers to a country or region that has exchanges official documents with China concerning the special preferential tariff treatment for the least developed countries.
“Materials” shall include the components, spare parts, constituent parts, component and/or raw materials that formed another product in its physical nature or have been used in the production process of another product.
“Originating Materials” refer to the materials that have satisfied the qualification of origin as provided under the rules of origin as provided herein.
“Production” refers to the ways of obtaining goods, including planting, breeding, exploiting, harvesting, fishing, capturing, entrapping, manufacturing, producing, or processing or assembling.
“Agreement on Customs Valuation” refers to the Agreement on Implementation of Article 7 of GATT 1994 as part of the Marrakesh Agreement Establishing the World Trade Organization.
Article 27
the Specific Rules of Origin for Goods of the Least Developed Countries That Have Established Diplomatic Relations with China and the name list of the regional group mentioned in these Measures shall be announced separately by the General Administration of Customs.
Article 28
The power to interpret these Measures shall vest into the General Administration of Customs.
Article 29
These Measures shall come into effect on April 1, 2017. The Administrative Measures of the Customs of the People’s Republic of China for the origin of Imported Goods under the Special Preferential Tariff Treatment to the Least Developed Countries published in the 192nd Order of the General Administration of Customs in June 28, 2010 and the Decision of the General Administration of Customs on Revising the Administrative Measures of the Customs of the People’s Republic of China for the origin of Imported Goods under the Special Preferential Tariff Treatment to the Least Developed Countries published in the 210th Order of the General Administration of Customs in July 1, 2013 shall be simultaneously annulled.