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PROVISIONS OF THE CUSTOMS OF THE PEOPLE'S REPUBLIC OF CHINA ON EXECUTING THE RULES OF ORIGIN FOR THE CHINA - ASEAN FREE TRADE ZONE UNDER THE FRAMEWORK AGREEMENT ON COMPREHENSIVE ECONOMIC COOPERATION BETWEEN CHINA AND ASEAN |
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(Order No.108 of the General Administration of Customs of the People's Republic of China on the Rules of Origin for the China - ASEAN Free Trade Zone (December 31, 2003), December 30, 2003: The Provisions of the Customs of the People's Republic of China on Executing the Rules of Origin for the China - ASEAN Free Trade Zone under the Framework Agreement on Comprehensive Economic Cooperation between China and ASEAN was adopted at the executive meeting of this Administration on December 24, 3003. It is hereby promulgated and shall come into force on January 1, 2004) |
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SUBJECT : TARIFF; RULES OF ORIGIN FOR THE CHINA - ASEAN FREE TRADE ZONE |
ISSUING DEPARTMENT : GENERAL ADMINISTRATION OF CUSTOMS OF THE PEOPLE'S REPUBLIC OF CHINA |
ISSUE DATE : 12/30/2003 |
IMPLEMENT DATE : 01/01/2004 |
LENGTH : 2,474 words |
TEXT : |
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Article 1. In order to promote the economic and trade activities between China and ASEAN, and to correctly determine the origin of the goods imported under the Framework Agreement on Comprehensive Economic Cooperation between China and ASEAN (hereinafter referred to the Agreement), the present Provisions are formulated in accordance with the Customs Law and the Agreement.
Article 2. The present Provisions shall apply to the goods imported from ASEAN countries under the Agreement (see the Customs Import and Export Tariff of the People's Republic of China for details of the list of goods), however, the goods imported by way of processing trade shall be excluded.
Article 3. The following import goods that are directly transported from an ASEAN country shall be deemed as goods of ASEAN origin, and the China ¡§C ASEAN conventional tariff shall be applicable:
(1) Products fully obtained or produced in an ASEAN country; and
(2) Products that are not fully obtained or produced but that are in conformity with Articles 5 and 6 hereof.
Article 4. The term "products fully obtained or produced in an ASEAN country" mentioned in Item (1) of Article 3 hereof means:
(1) plants and their products harvested, picked or collected in that ASEAN country;
(2) live animals borne and bred in that ASEAN country;
(3) products that are obtained from the animals mentioned in Item (2) of this Article in that ASEAN country and that have undergone no further processing;
(4) products obtained from hunting, trapping, fishing, aqua-breeding, collection, or seizing in that ASEAN country;
(5) minerals or other natural materials other than those abovementioned in Items (1) through (4) that are exploited or extracted from the territory, territorial waters, seabed, or seabed subsoil of that ASEAN country;
(6) products that are obtained from the wasters, seabed or seabed subsoil outside the territorial waters of that ASEAN country, provided that the said country has the right to develop the abovementioned waters, seabed and seabed subsoil pursuant to the provisions of the international law;
(7) aquatic and other marine products obtained from the high sea by ships registered with that ASEAN country or hanging the flag of that country;
(8) products obtained from processing or manufacturing of the products abovementioned in Item (7) on the processing ships registered with that ASEAN country or hanging the flag of that country;
(9) discarded and waste materials collected in that ASEAN country that can neither be used for their original purpose nor be restored or repaired, and that are only fit for recovery of discarded or raw materials, or for recycling purpose; and
(10) products obtained from processing of the products listed above only in Items (1) through (9) in that ASEAN country.
Article 5. The "products that are not fully obtained or produced" mentioned in Item (2) of Article 3 hereof shall satisfy either of the following conditions:
(1) Products of which the origin is of any ASEAN country and the contents of China ¡§C ASEAN Free Trade Zone (hereinafter referred to the Free Trade Zone) is no less that 40%; or
(2) Materials, spare parts, or products not originated in the Free Trade Zone of which the total value dose not exceed 60% of the FOB price of the products produced or obtained, and the last production operation is finished within an ASEAN country.
Article 6. The term "contents of China ¡§C ASEAN Free Trade Zone" mentioned in Article 5 hereof is illustrated by the following formula:
100% - (value of the materials not originated in the Free Trade Zone + value of the materials of unidentified origin) / FOB price x 100¡ê£¤ >=¡ê¡ä¡ê¡ã¡ê£¤
The "value of the materials not originated in the Free Trade Zone origin or of those of unidentified origin" used in the formula refers to the CIF price of the materials, or the price, determined in the first place, paid for the materials of unidentified origin within the ASEAN country in which the manufacturing or processing is carried out.
Article 7. Unless there are otherwise provisions, where the products of origin of an ASEAN country that meet the requirement of Article 3 hereof are manufactured or processed into other products within any ASEAN country, and the accumulated contents of the member states of the Free Trade Zone in those products are no less than 40%, the origin of those obtained products shall be the ASEAN country in which the manufacturing or processing is carried out, and the China ASEAN conventional tariff shall apply to such products.
Article 8. Where the products processed or manufactured in an ASEAN country meet the standards of special origin of products under the Rules of Origin for the China ¡§C ASEAN Free Trade Zone, the processing or manufacturing country shall be the country of origin of those products. The said standards are a part of the present Provisions and will be promulgated by the General Administration of Customs (GAC) separately.
Article 9. The following processing or disposal, no matter whether they are finished separately or conjunctly, shall all be deemed as minor processing and disposal, and shall be disregarded in determining whether the goods are fully obtained:
(1) processing or disposal conducted for the transport or storage of the goods to keep them in good conditions;
(2) processing or disposal conducted for the convenience of the carriage of the goods; or
(3) processing or disposal, such as packing or display, etc., conducted for the sale of the goods.
Article 10. The term "directly transported" mentioned in Article 3 hereof means that the goods imported under the Agreement are transported from an ASEAN country directly to China, or are transported from an ASEAN country to China via any other member state of the Free Trade Zone, but have not passed any non-member state of the Free Trade Zone on the way.
Where the import goods are transported to China via any non-member state of the Free Trade Zone (including the cases of change of vehicle or temporary storage) and meet the following conditions at the same time, they shall be deemed as being directly transported from the ASEAN country:
(1) simply due to geographic reasons or transport needs;
(2) not being traded or consumed when passing through the abovementioned country; and
(3) not going through any processing in the abovementioned country other than such processing that is needed for loading and unloading and for keeping the goods in good conditions.
Article 11. Where the packages, package materials, and containers, as well as the accessories, spare parts, tools, and introduction materials shall be declared for export together with the goods, and are categorized together with those goods in the Import and Export Customs Tariff of the People's Republic of China, they shall be ignored in the determination of the origin of the goods.
Article 12. Unless there are otherwise provisions, the origins of the energy, fuel, plants, equipment, machines, and tools used in the manufacturing of the products, as well as the origins of the materials that are not contents or components of the products, shall be disregarded in determining the origin of the products.
Article 13. In customs declaration of the goods imported under the Agreement, the consignee shall voluntarily declare to the customs that the China ¡§C ASEAN conventional tariff shall be applied to those goods, and shall submit the certificate of origin (including the original and the third page) issued by the governmental agency designated by the exporting ASEAN country.
Where the import goods are transported via any non-member state of the Free Trade Zone, apart from complying with the preceding paragraph, the consignee of the import goods shall also supplement the following documents to the customs:
(1) the through bill of lading issued by exporting ASEAN country;
(2) duplicate of the original business invoice of the goods; and
(3) the relevant certificates in conformity with Paragraph 2 of Article 10 hereof.
If the certificate of origin is found, upon check by the customs where the declaration is made, to be in conformity with the Procedures for Issuing and Checking of the Certificate of Origin, and the contents of the certificate are consistent with the import goods, that certificate shall be deemed as valid.
Article 14. If the FOB price of any import goods of the origin of an ASEAN country is less than 200 US dollars, there is no need to submit the certificate of origin.
Article 15. The certificate of origin of the goods imported from of an ASEAN country shall, within 4 months from the day of issuing by the relevant government agency of the ASEAN country, be submitted to the customs within China where the customs declaration is made.
Where the import goods are transported through any non-member state of the Free Trade Zone pursuant to Paragraph 2 of Article 10 hereof, the time limit for submission of the certificate of origin of those goods will be extended to 6 months.
Where the consignee of the import goods fails to submit the certificate of origin within the abovementioned time limit due to force majeure or any other justified reasons, the customs where the declaration is made may accept the certificate upon examination.
Where the import goods have been actually imported within the period prescribed in Paragraphs 1 and 2 of this Article, the time limit for submission of the certificate of origin may not be restricted by the provisions of Paragraphs 1 and 2.
Article 16. Where the customs where the declaration is made has any doubt over the validity of the contents of the certificate of origin, it may request the relevant government agency of the ASEAN country to verify the certificate of origin, and the agency receiving the request shall make a reply within 6 months. During the period when the verification result has not come out, the customs where the declaration is made may release the goods after collecting a cash deposit of the value equal to the amount of the taxes payable at the rate applied to those goods as if they were not under the Agreement, handle the import formalities and make the customs statistics. After the verification is finished, the customs where the declaration is made shall, according to the result of the verification, immediately refund the cash deposit or change the cash deposit into import tariff, and modify the customs statistics data correspondingly.
If the import goods are those prohibited or restricted by the state from importing, or if any suspect of illegal offence is involved, the customs may not release the goods before the verification of the certificate of origin is finished.
Article 17. The customs shall keep confidential the materials exchanged with the ASEAN countries for verification of the certificates of origin, except the customs import and export trade statistic data.
Article 18. If, after the goods imported from an ASEAN country are declared for customs clearance but before the customs grants the clearance, the destination of those goods is changed and the goods need to be transported to another country, the consignee shall file a written application with the customs.
The customs shall indicate and confirm the change of the destination of the goods on the certificate of origin before returning the original certificate to the consignee of the import goods and returning the third page of the certificate to the issuing agency.
Article 19. If the products with the origin of any ASEAN country are transported to another ASEAN country or China for exhibition, and are sold to China during or after the exhibition, and if the following conditions are satisfied at the same time, the China ¡§C ASEAN conventional tariff may be applied:
(1) the exporter has transported the products from the exporting ASEAN country to the ASEAN country where the exhibition is held and the goods have actually been exhibited in that country;
(2) the exporter has transferred the goods to the consignee within China; and
(3) the conditions of the products that are sold into China during or after the exhibition are consistent with their conditions at the exhibition.
Where the exhibition products meeting the preceding paragraph are declared for import, the consignee shall submit to the custom the certificate of origin of the exporting ASEAN country, and shall at the same time provide the certificate specifying the name and address of the exhibition issued by the relevant government agency of the country where the exhibition is held, as well as the relevant certificates meeting Paragraph 2 of Article 10 hereof.
The term "exhibition" used in this Article shall include the business, agricultural, and handcraft industry exhibitions or trade fairs especially held for the sale of foreign products, as well as the similar exhibitions or displays held in shops and business places. The products shall be subject to customs control during the exhibition.
Article 20. The following terms used herein refer to:
(1) "ASEAN countries" refers to the other member states signed the Agreement jointly with China, namely Brunei Darussalam, Kingdom of Cambodia, the Republic of Indonesia, the Lao People's Democratic Republic, Malaysia, the Union of Burma, the Republic of the Philippines, the Republic of Singapore, the Kingdom of Thailand, and the Socialist Republic of Vietnam;
(2) "Materials" shall include constituents, accessories, components, semi-assembled parts, and the products that actually constitute a part of another product or are used in the production of another product;
(3) "Goods of origin" refers to the products that are determined to be conformity with the conditions of origin in accordance with Article 3;
(4) "Production" refers to the method of obtaining a product, including planning, exploiting, harvesting, breeding, reproducing, extracting, collecting, gathering, seizing, fishing, trapping, hunting, manufacturing, producing, processing and assembling;
(5) "Plants" refers to all the plants such as fruits, flowers, vegetables, trees, algae, epiphytes, and live plants, etc. ;
(6) "Animals" refers to all the animals such as mammals, birds, fishes, carapaces, mollusks, reptiles, bacteria, and virus, etc;
(7) "Discarded and waste materials" refers to the all the discarded and waste machines, packages, and materials, etc., that are generated in the course of processing, manufacturing and consuming in industrial, mining, agricultural, construction, smelting, and sewage disposal industries;
(8) "Standards of the special origin of products" refers to the rules of change of tax code of the prescribed materials, specific processing or manufacturing operation of those materials, satisfaction of a certain standard of ad valorem percentage, or combination of the abovementioned standards;
Article 21. The customs shall deal with any act violating the present Provisions in accordance with the Customs Law of the People's Republic of China and the Implementing Rules for Administration Punishment of the Customs Law of the People's Republic of China. If a crime has been constituted, the offender shall be subject to criminal liabilities.
Article 22. The power to interpret the present Provisions shall remain with GAC.
Article 23. The present Provisions shall come into force on January 1, 2004.
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