Laws of the People's Republic of China

REGULATIONS OF THE CUSTOMS GENERAL ADMINISTRATION,
THE MINISTRY OF FINANCE AND THE MINISTRY OF FOREIGN
ECONOMIC RELATIONS AND TRADE CONCERNING SUPERVISION AND
CONTROL OVER, AND LEVYING AND EXEMPTION OF DUTIES ON IMPORTS
AND EXPORTS OF CHINESE-FOREIGN JOINT VENTURES

  (Promulgated by the General Administration of
Customs, the Ministry of Finance and the Ministry
of Foreign Economic Relations and Trade on
April 30, 1984)

SUBJECT: CUSTOMS

ISSUING-DEPT: GENERAL CUSTOMS ADMINISTRATION

ISSUE-DATE: 04/30/1984

IMPLEMENT-DATE: 05/01/1984

LENGTH: 826 words

TEXT:

[Article 1] The present Regulations are formulated in accordance with stipulations laid down in "the Provisional Customs Law of the People's Republic of China", "the Law of the People's Republic of China on Joint Ventures Using Chinese and Foreign Investment" and its operative regulations and other decrees concerned, for the purpose of encouraging foreign companies, enterprises and other economic entities or individuals (hereinafter referred to as the "foreign participants") to incorporate themselves, within the territory of China, into joint ventures with Chinese companies, enterprises and other economic entities (hereinafter referred to as the "Chinese participants").

[Article 2] Joint ventures shall be registered with the local Customs in their localities or the Customs in charge (hereinafter referred to as the "Customs in charge") by submitting copies or photocopies of the certificates of approval issued by the Ministry of Foreign Economic Relations and Trade of the People's Republic of China and business licenses issued by the Administrative Bureau for Industry and Commerce or its authorized organizations, articles of association and contracts concluded by the two parties.

[Article 3] Joint ventures shall apply to the Customs for imports and exports by filling out the declaration forms. For those products where import (or export) licenses are required, import (or export) licenses shall be presented to the Customs for verification.

[Article 4] Joint ventures shall be exempt from Customs duties and industrial and commercial consolidated tax for the following imported goods:

(1) Machinery and equipment, parts and other materials (other materials here and hereinafter mean materials required for the joint venture's construction on the factory sites and for installation and reinforcement of machines) which are part of the foreign participant's share of investment according to the provisions of the contract.

(2) Machinery and equipment, parts and other materials imported with funds which are part of the joint venture's total investment.

(3) Machinery and equipment, parts and other materials, imported by joint ventures with additional capital, for which China cannot guarantee production or supply.

[Article 5] For those imported goods to which the exemption of duties may be accorded as provided for in the provisions of Article 4, the joint ventures shall, prior to the importation of the goods, apply to the Customs in charge for exemption by presenting the approved contract (or verification certificates authorizing the importation of the goods not listed in the contract) issued by the Ministry of Foreign Economic Relations and Trade or its authorized organizations. After the exemption has been examined or determined by the Customs in charge, the goods imported can be released by the Customs at the place of importation based on the duty-free certificates issued by the Customs in charge.

[Article 6] The raw materials, components, spare parts, auxiliary materials and packaging materials (hereinafter referred to as imported materials and components) imported to be used for the processing of goods for export shall be exempt from Customs duties and industrial and commercial consolidated tax. By-products, substandard products and those parts which cannot be exported for specific reasons shall have duties levied according to the relevant regulations and shall be dealt with by the Customs according to the administrative regulations on the processing operations using imported materials and those on the bonded factories.

[Article 7] Imports of materials and components by joint ventures for processing of products for domestic sale, approved by the department in charge, shall have duties levied according to the relevant regulations at the time of importation.

[Article 8] Dutiable goods exported by joint ventures shall be exempt from export duties, except for those restricted by the state.

[Article 9] Where there are no stipulations in the present regulations, the problems of levying and exemption of duties and administration of imports and exports for joint ventures shall be dealt with by the Customs according to the relevant regulations.

[Article 10] Imports that enjoy exemption of duties shall not be resold or transferred to others. Any resale or transfer without Customs permission shall be dealt with by the Customs in accordance with "the Provisional Customs Law of the People's Republic of China".

[Article 11] Imports and exports of joint ventures established jointly by domestic companies, enterprises and other economic entities with compatriots in Taiwan Province. Hong Kong and Macao and overseas Chinese, may also be dealt with according to the above mentioned regulations, unless otherwise provided for.

[Article 12] These Regulations shall come into force on May 1, 1984.