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RULES GOVERNING THE CONTROL OVER INWARD AND OUTWARD-BOUND OCEAN-GOING VESSELS OF FOREIGN REGISTRY OF CHINESE-FOREIGN COOPERATIVE EXPLOITATION OF OFFSHORE PETROLEUM, GOODS AND PERSONAL EFFECTS BELONGING TO FOREIGN PERSONNEL WORKING IN

 RULES GOVERNING THE CONTROL OVER INWARD AND OUTWARD-BOUND
OCEAN-GOING VESSELS OF FOREIGN REGISTRY OF CHINESE-FOREIGN
COOPERATIVE EXPLOITATION OF OFFSHORE PETROLEUM, GOODS AND
PERSONAL EFFECTS BELONGING TO FOREIGN PERSONNEL WORKING IN CHINA

 

 



SUBJECT: MARITIME LAW

ISSUING-DEPT: GENERAL CUSTOMS ADMINISTRATION

ISSUE-DATE: 04/27/1984

IMPLEMENT-DATE: 06/01/1984

LENGTH: 2324 words

TEXT:

CHAPTER I GENERAL RULES

[Article 1] These Rules are hereby formulated in accordance with stipulations laid down in the "Provisional Customs Law of the People's Republic of China", the "Regulations of the People's Republic of China on Exploitation of Offshore Petroleum Resources in Cooperation with Foreign Enterprises" and other relevant decrees, for the purpose of encouraging the Chinese-foreign cooperative exploitation of offshore petroleum.

[Article 2] The vessels, platforms and goods imported and exported for the cooperative exploitation of offshore petroleum and luggage and articles carried by foreign experts and technicians, shall be subject to control by the Customs of the People's Republic of China (hereinafter referred to as the Customs) in accordance with the provisions of these Rules.

[Article 3] The corporations approved for cooperative exploitation of offshore petroleum and related service companies (including the regional sub-corporations of the China National Offshore Oil Corporation (CNOOC), the special manufacturing company of China national offshore oil, China national oilfield service and supply company, the contract corporation of joint ventures, foreign offshore companies and foreign contract companies) shall submit the following documents to the local Customs for registration:

(1) The document of approval by the Ministry of Foreign Economic Relations and Trade of the People's Republic of China or other competent authorities.

(2) The contract (or the certificate of approval of the contract) for the exploitation project or sub-contract.

(3) The licence for business issued by the General Administration of Industry and Commerce of the People's Republic of China or its administrative bureaus.

CHAPTER II CONTROL OVER FOREIGN VESSELS COMING FROM OR LEAVING FOR FOREIGN PORTS

[Article 4] Foreign vessels (including exploration, service, supply and transport vessels) and platforms (including drilling, operating platforms and other structures on the sea), coming from foreign ports to the operating areas in the Chinese territorial sea (hereinafter referred to as operating areas) or harbours or leaving the operating areas or harbours for abroad, as well as the special instruments and equipment imported or exported on board the above-mentioned vessels or platforms for exploration and exploitation of offshore petroleum, shall be declared to the Customs by the ship's master or his agent and be subject to Customs inspection.  Vessels entering and leaving Chinese ports shall pay tonnage dues in accordance with the Provisional Rules Governing the Levy of Tonnage Dues.

[Article 5] The Customs shall, when deemed necessary, inspect the foreign vessels plying between Chinese harbours or between operating areas and Chinese coastal harbours during the period of operation.

[Article 6] Special instruments and equipment for oil exploration and exploitation as well as ship's stores (including foodstuffs) carried by the vessels or platforms must be used or consumed solely on board these vessels or Platforms and in the operating area.

Any above-mentioned goods temporarily discharged ashore, shall be stored in the Customs-bonded warehouse and be placed under Customs supervision and control.

In the case of goods being sold or transferred to vessels of Chinese nationality or other units or individuals, the person concerned shall apply to the Customs in advance for approval and comply with the Customs formalities concerning the payment of duties and taxes.

[Article 7] Vessels of Chinese nationality being rented to a foreign company shall be supervised and controlled by the Customs in accordance with the regulations governing international oceangoing ships of Chinese nationality.

CHAPTER III SUPERVISION AND CONTROL OVER IMPORT AND EXPORT GOODS

[Article 8] When goods are imported or exported for the cooperative exploitation of offshore petroleum, the goods-owner or his agent shall declare them to the Customs at the place of entry or exit by filling in and submitting the import or export Goods Declaration in duplicate together with the document of approval, bill of lading (or waybill), invoices and packing list as provided for in Articles 12 and 14 of the present Rules.  Where the goods exceed the scope of the project or the company's business scope, or are subject to import and export licences in accordance with state stipulations, they shall be released by the Customs after verifying the import or export licences issued by the Ministry of Foreign Economic Relations and Trade of the People's Republic of China or its authorised agencies.

Where the goods-owner or his agent requests the completion of Customs formalities at the place of destination or shipment, permission must be obtained from the Customs and the goods in question shall be placed under Customs transit procedure.  When deemed necessary the goods or the means of conveyance may be sealed by the Customs, and the forwarding agent shall be responsible for the intactness of the Customs seals.

[Article 9] At the time of Customs examination of the imports or exports, the goods-owner or his agent shall be present and be responsible for unpacking the goods.  Where examination of the goods is requested to be done outside the Customs supervision zone, the goods-owner or his agent shall apply to the Customs in advance for permission, and pay the fees as stipulated by the relevant rules.

[Article 10] Imported goods, if not applied for or duty-paid with three months from the date of entry of the means of conveyance, shall be taken over by the Customs for disposal in accordance with the relevant Provisions.

[Article 11] Delivery of import goods shall only be allowed after Customs clearance, or with the special permission of the Customs, and the loading of export goods for shipment abroad after completion of Customs formalities shall proceed under the Customs supervision and control.

[Article 12] When the machinery, equipment, spare parts, accessories and other materials for implementation of oil contracts (hereinafter referred to as production goods and materials) are imported, the goods-owner or his agent shall declare them to the Customs by submitting a list of goods and materials approved by the CNOOC, or a document of approval with such list attached.  The Customs shall allow such goods to be imported where exclusive use of the goods for the project is ascertained.

The production goods and materials may be imported under special circumstances or as an urgent case by presentation of a certificate issued by the regional sub-corporation of the CNOOC upon Customs verification and permission.  Such goods may also be borrowed from other oil corporations of the same nature.  In either case, a formal document of approval from CNOOC shall be submitted to the Customs within the prescribed time limit.

[Article 13] The imported production goods and materials referred to in Article 12, if falling into the categories as specified in the "Rules Concerning the Levy and Exemption of Customs Duty and Consolidated Industrial and Commercial Tax on Imports and Exports for the Chinese-Foreign Cooperative Exploitation of Offshore Petroleum" and its annex, the "List of Imported goods Exempt from Duties and Taxes for the Chinese-Foreign Cooperative Exploitation of Offshore Petroleum" (approved on 28 February 1982 by the State Council), shall be released by the Customs duty-free.  Those exceeding the prescribed scope shall be liable to customs duty and industrial and commercial (consolidated) taxes.

No resale or transfer of the imported goods and materials exempted from duty and tax shall be allowed without prior authorisation.  Before any such resale or transfer are to be transacted, further approval shall be obtained from the competent authorities from which the original approval was issued, and duties shall be levied or exempted by the local Customs accordingly.

[Article 14] When the production goods and materials for the construction of oil bases or various services needed for the projects, are imported by the service and supply companies for China offshore oil operation, and raw materials, components and parts for manufacturing machinery and equipment used for oil operation are imported by the special manufacturing company.  Customs formalities concerning their examination and release shall be completed upon the production of the document of approval issued by the CNOOC or other competent authorities with a list of import goods attached.  Duties and taxes shall be levied or exempted in accordance with Article 13 of the present Rules.

[Article 15] Where articles for daily use for personnel of foreign nationality working on platforms and oilbases and their families living with them are imported by the supply or service company, Customs formalities concerning examination and release of the goods shall be completed upon the production of the document of approval issued by the competent authorities at provincial and municipal level together with the list of import goods.  The goods shall be exempted from import duties and industrial and commercial (consolidated) taxes.

The above-mentioned articles shall neither be supplied to foreigners other than those working for the project nor to Chinese employees and shall not be sold beyond the designated area.

The above-mentioned goods exempted from duties and taxes shall be stored in separate warehouses or special shops and be placed under Customs control.  In addition, a special fee entailed by such control amounting to 2% per consignment according to its CIF value shall be paid to the Customs by the company.  The service and supply company shall be required to prepare separate accounts for periodical verification by Customs.

[Article 16] The warehouses set up for consignment sale by foreign businessman at oil bases shall be dealt with by the Customs in accordance with "Provincial Customs Rules Governing the Supervision and Control over Bonded Cargo and Bonded Warehouses".  When the goods and materials for consignment sale and the spare parts and components for maintenance and repair are to be withdrawn from the warehouse for importation, the goods-owner or his agent shall complete the Customs formalities and duties and taxes shall be levied or exempted according to these Rules.

[Article 17] Articles for office use in reasonable amounts imported by the foreign enterprise shall be applied to the Customs in advance for approval and the customs duties and industrial and commercial (consolidated) taxes shall be waived after verification by the Customs.

[Article 18] When goods are temporarily imported, the goods-owner or his agent shall declare to the local Customs and guarantee their re-exportation within 6 months.  When necessary, the time limit may be extended after Customs verification.  Where such goods fail to be re-exported within the prescribed time-limit, import formalities shall be completed and duties and taxes shall be levied in accordance with Articles 12 and 13 of the present Rules.

[Article 19] The crude oil being exported shall be released by the Customs after examination on the strength of the export licence issued by the Ministry of Foreign Economic Relations and Trade of the People's Republic of China.

Any data, materials and samples shall be released by the Customs after verifying the certificates issued by the regional sub-corporations of CNOOC.

CHAPTER IV SUPERVISION AND CONTROL OVER LUGGAGE CARRIED BY FOREIGN STAFF WORKING IN CHINA FOR CHINESE-FOREIGN COOPERATIVE EXPLOITATION OF OFFSHORE PETROLEUM

[Article 20] Luggage carried by incoming and outgoing foreign staff for a short stay in China and working in China for the purpose of Chinese-foreign cooperative exploitation of offshore petroleum, shall be dealt with in accordance with the Customs regulations applicable to short stay visitors.

[Article 21] Luggage carried by incoming and outgoing foreign resident staff working in China for Chinese-foreign cooperative exploitation of offshore petroleum, shall be subject to the Customs' "Regulations Concerning Import and Export of Articles by Resident Offices and their Staff of Offshore Enterprises and Press in China".

CHAPTER V SUPPLEMENTARY PROVISIONS

[Article 22] Any one of the following acts shall be dealt with by the Customs according to the provisions laid down in the Provisional Customs Law.

(1) False declaration;

(2) Without Customs permission, shipping or taking delivery of goods not yet released by the Customs;

(3) Taking advantage of import and export opportunities for undertaking smuggling activities;

(4) The sale, without Customs permission, of foreign goods and articles which have been released with exemption from duties and taxes;

(5) Goods and materials admitted temporarily having neither been re-exported within the time limit nor passed Customs formalities accordingly;

(6) Unauthorisedly tearing open the Customs covers or breaking seals; or losing Customs cover; and

(7) Other infringements of Customs regulations and stipulations.

[Article 23] When necessary, Customs may send its officers or set up its establishment at oil bases for the collection of Customs duty.  The oil company there shall provide working and living facilities for the convenience of Customs officers.

[Article 24] The import of building materials, office appliances and articles for daily use, used in special economic zones by the company offices or living quarters there, shall be dealt with in accordance with the relevant regulations governing the control over importation and exportation of goods in special economic zones.

[Article 25] These Rules shall enter into force as of June 1, 1984. 


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