(Adopted in accordance with No. 134 and No. 135 of Decree of the State Council of PRC and discussion of the Sixth Session of the Tariff/Tax Regulation Committee of the State Council)

Article 1      The procedure for taxation will be simplified so as to facilitate import of personal articles out of rational needs. These Measures are specially made in accordance with relevant regulations of the Customs Law of the People¡¯s Republic of China and the Provisions of Import and Export Duty.

Article 2     Unless regulations are made otherwise, import duties on baggage, mails and other articles for personal use (hereinafter referred to as ¡°personal articles to be taxed¡±) that are allowed to be imported and taxed are collected by Customs House in accordance with the Table of Tax Rates on Personal Baggage, Articles and Mails of Travelers Entering China.

In these Measures, import duties include tariff, value-added tax and consumption tax.

According to these Measures, automobiles, motorcycles and their parts and accessories are excluded from personal articles to be taxed.

Import duties are collected on personal automobiles, motorcycles and their parts and accessories in accordance with the Rules on Import and Export Duty of Customs of PRC and other relevant taxation laws.

The Table of Tax Rates on Personal Baggage, Articles and Mails (hereinafter referred to as the Table of Tax Rates) is part of the Measures of the Customs of the People¡¯s Republic of China for the Collection of Import Duties on Personal Baggage, Articles and Mails of Travelers Entering China (hereinafter referred to as the Measures on the Collection of Import Duties). The adjustment of tax rates of Table of Tax Rates is examined by the Tariff/Tax Regulation Committee of the State Council, and then issued to the public by General Administration of Customs.

Article 3     Taxpayers of import duties are travelers entering China with personal articles to be taxed, workmen of transport vehicles, receivers of import mails and receivers of personal articles to be taxed which are imported in other ways.

Taxpayers can handle taxation procedure by themselves or entrust taxation procedure to another person. Agent entrusted with taxation procedure shall conform to all rules, which require trustors to obey the Measures on Collection of Import Duties.

Article 4     The Classification Table of Customs Duties Regulations on Personal Baggage, Articles and Mails (hereinafter referred to as Classification Table of Customs Duties Regulations) is formulated in accordance with Table of Tax Rates by General Administration of Customs.

Personal articles to be taxed are classified according to Classification Table of Customs Duties Regulations and then their tax rates are made by Customs House. Import items that have not been named in Classification Table of Customs Duties Regulations can be classified into the most suitable taxation categories by Customs House according to the categories specified by Table of Tax Rates and are thus taxed.

Article 5     Calculation of import duty is based on the prices of import items.

Article 6     Import duties of personal articles to be taxed are calculated by Customs House according to after-tax prices and valid tax rates of that very day after the already filled-and-issued taxation is paid.

After-tax price times import duty rate makes the amount of import duty to be paid.

Tax-payers shall pay tax before Customs House grants clearance for personal articles to be taxed.

Article 7     If Customs House omits to collect tax after granting clearance for personal articles to be taxed, it shall impose a supplementary tax on taxpayers from the day when payment of tax is made out till the end of a year; if Customs House omits to collect tax, it shall impose a supplementary tax on taxpayers from the day when personal articles are granted clearance till the end of a year. If Customs House omits to collect tax or fails to collect the required amount of tax due to violation of regulations by taxpayers, it can subsequently impose duty on taxpayers from the day when violation of regulations occurs till the end of three years.

If over-taxation is found and confirmed, Customs House shall return extra taxation immediately. Taxpayers can also require Customs House to return extra taxation from the day when they pay tax till the end of a year.

Article 8     If any argument related to taxation occurs between taxpayers and Customs House, taxpayers shall pay tax according to the amount of taxation appraised and fixed by Customs House and then submit written application to Customs House for agreement from the day when Customs House fills in and issues payment of tax till the end of thirty days. Customs House refuses to attend to overdue application.

Customs House shall decide upon agreement from the day it receives agreement application till the end of fifteen days and notify taxpayers. If a taxpayer is dissatisfied with the decision of agreement, he can submit application to General Administration of Customs for agreement from the day when he is notified by Customs House till the end of fifteen days. On receiving application for agreement, General Administration of Customs shall decide upon agreement within thirty days and notify taxpayer.

If a taxpayer still feels dissatisfied with the decisions of agreement by General Administration of Customs, he can appeal to people¡¯s court from the day when he receives book concerning decision upon agreement till the end of fifteen days.

Article 9     The Committee of Customs Duties Regulations of State Council reserves the right to interpret these Measures.

Article 10     The Measures on Collection of Import Duties has been implemented as of July 1, 1994.

Baggage of travelers entering China

Table of Tax Rates on Personal Mails:

Taxation category     Name of import items          Import tax rate

1) Books, newspapers, magazines, and films for education purpose, slides, tapes in the original, VCR, contraceptives, gold, silver, and articles made of gold or silver, food (duty-free)

2) Textiles, finished electrical products (mini video cameras excluded), cameras, bicycles, watches, clocks, parts and accessories of clocks, cosmetics (50%)

3) Video cameras (100%)

4) Tobacco, wine (200%)

5) Items excluded in the above-mentioned categories (20%)