Decree of the General Administration of Customs No.170

The Measures of the Customs of the People’s Republic of China for the Classified Management of Enterprises, which were deliberated and adopted at the executive meeting of the General Administration of Customs on January 4, 2008, are hereby promulgated and shall enter into force as of April 1, 2008. The Measures of the Customs of the People’s Republic of China for Implementing Classified Management over Enterprises promulgated by Decree No.71 of the General Administration of Customs on March 31, 1999 and the Provisions on Examination and Approval of the Application of Convenient Customs Clearance Measures by Large-scale High and New Technology Enterprises promulgated by Decree No.86 of the General Administration of Customs and the Ministry of Foreign Trade and Economic Cooperation on July 20, 2001 shall be abolished simultaneously.

Measures of the Customs of the People’s Republic of China for the Classified Management of Enterprises.

Article 10
Any consignee or consigner of import or export goods that has not been under any of the circumstances as mentioned in Articles 8 and 9 but meets any of the following conditions, shall be subject to the management category of B:
(1)Having been registered for the first time;
(2)Its management category has never been adjusted after the initial registration;
(3)An enterprise in the category of AA neither satisfies the relevant requirements for original management category nor meets relevant requirements for the management category of A.
(4)An enterprise in the category of A does not satisfy the relevant requirements for the original category.

Article 11
Processing enterprises registered at the Customs shall be subject to classified management in light of the consignees or consigners of import or export goods.
Section 2 Customs Declaration Enterprises

Article 12
A customs declaration enterprise in the category of AA shall meet the following requirements simultaneously:
(1)Having been subject to the management category of A for more than one year;
(2)Having deputized more than 20,000 (5,000 for central and western regions) import or export declaration forms and archival filing lists for entry or exit of the country in the previous year;
(3)Meeting the requirements for customs administration, enterprise business management and trading safety upon the inspection of the Customs; and
(4)Submitting a Report on Business Management Status and the audit report for the previous year as issued by an accounting firm every year, and submitting a Form on Import or Export Business every half a year.

Article 13
A declaration enterprise in the category of A shall simultaneously meet the following requirements:
(1)Having been subject to the management category of B for more than one year;
(2)Both the enterprise and its practicing customs declarers have never committed the crime of smuggling, the act of smuggling or violation of the provisions on customs supervision and control for one consecutive year;
(3)The goods declared under its agency have never been confiscated by the Customs due to the infringement on intellectual property rights for one consecutive year;
(4)Having no defaulted taxes or fines for one consecutive year;
(5)Having deputized more than 3,000 import or export declaration forms and archival filing lists for entry or exit of the country in the previous year;
(6)Having the error rate of import and export declaration under its agency below 3% during the previous year;
(7)Having made accounts and business records according to law, and having recorded down all the activities regarding the commissioned declaration business in a truthful, accurate and complete manner;
(8)Submitting a Report on Business Management Status every year;
(9)Handling the formalities for extension of licensing and for reissuing and altering the Register Document for Customs Declaration of Consignees or Consigners of Import or Export Goods of the Customs of the People’s Republic of China according to provisions; and
(10)Having no bad records in the administrative departments and institutions of commerce, people’s bank, industry and commerce, taxation, quality inspection, foreign exchange and supervision, etc.

Article 14
A declaration enterprise under any of the following circumstances shall be subject to the management category of C:
(1)Having committed the act of smuggling;
(2)Having violated the provisions on customs supervision and control for more than three times within one year, or having been accumulatively fined more than 500,000 Yuan due to violation of the provisions on customs supervision and control within one year;
(3)The goods declared under its agency have been confiscated by the Customs for three times within one year due to the infringement on intellectual property rights;
(4)Having the error rate of import and export declaration under its agency at 10 % or above during the previous year;
(5)Having defaulted in payment of taxes or fines payable in the amount of less than 500,000 Yuan;
(6)Failing to accept or assist in the investigations by the Customs when the goods declared under its agency are suspected of smuggling or violation of the provisions on customs supervision and control; or
(7)Its declaration business has been suspended by the Customs.

Article 15
A declaration enterprise under any of the following circumstances shall be subject to the management category of D:
(1)Having committed the crime of smuggling;
(2)Having committed the act of smuggling more than twice in one year;
(3)The goods declared under its agency have been confiscated for more than four time within one year due to the infringement on intellectual property rights; or
(4)Having defaulted in payment of taxes or fines payable in the amount more than 500,000 Yuan.

Article 16
Any declaration enterprise that is not under any of the circumstances as mentioned in Articles 14 and 15 and also meet one of the following conditions shall be subject to the management category of B:
(1)Being registered for the first time;
(2)Its management category has never been adjusted after the initial registration;
(3)An enterprise in the category of AA neither satisfies relevant requirements for the original management category nor meets the requirements for the management category of A; or
(4)An enterprise in the category of A does not satisfy the relevant requirements for the original management category.
Chapter III Application and Adjustment of Management Categories[/vc_column_text][vc_column_text]