(Promulgated by Decree No. 20 of the Customs General Administration on April 24, 1991)
Article 1.
In order to ensure the smooth operation of the duty-free foreign exchange goods business and to strengthen supervision and administration by the customs, these Measures are formulated in accordance with the Customs Law of the People's Republic of China and relevant provisions of the the State Council on the business of duty-free foreign exchange goods.
Article 2.
The business of duty-free foreign exchange goods means the import of and sale to Chinese citizens traveling abroad, overseas Chinese, Chinese having foreign nationality, Taiwan compatriots, Hong Kong and Macau compatriots, Chinese citizens visiting overseas relatives an foreign diplomats resident in China duty-free foreign exchange goods by approved units.
Article 3.
The conducting of the business of duty-free foreign exchange goods must be approved by the State Council. Business activities of the approved operating units shall abide by these Measures.
Article 4.
When conducting the business of duty-free foreign exchange goods, the type of customers, variety of goods and supply stations (or service stations, duty-free shops, hereafter referred to as "the sales departments") established by operating units across China shall be submitted to the Customs General Administration for approval.
Article 5.
Operating units of duty-free foreign exchange goods and their sales departments shall set up places of business and bonded warehouses that meet the conditions of customs supervision and administration and shall designate customs declaration officers who shall be examined and licensed by the customs.
In the event that sales departments change the addressees of their places of business and bonded warehouses, they shall apply to their local customs concerned for approval and shall file with the Customs General Administration.
Article 6.
Operating units shall collectively organize order and import of duty-free foreign exchange goods. Their sales departments shall be responsible for the sale of the goods and may complete customs clearance on behalf of their operating units.
When importing duty-free foreign exchange goods, the operating units shall prior to the conclusion of contracts submit their procurement plan (including description, specification, model and price) to local customs concerned for approval.
Article 7.
Operating units shall conduct the import and storage of duty-free foreign exchange goods in accordance with the administrative provisions of the customs regarding the goods under supervision and administration and bonded warehouse. When each lot of goods arrive, the operating units or sales departments shall fill out Declaration Form of Imported Goods according to the variety, quantity and price of the goods actually arrived, and shall declare to the local customs of import together with relevant documents. After the verification, inspection and imposition of supervision and administration fee, the goods shall be stored in the bonded warehouse and be subject to the supervision and administration of the customs.
Article 8.
Sale of duty-free foreign exchange goods shall be proceeded according to relevant provisions of the customs and special vouchers approved by the customs shall be used.
Article 9.
When taking duty-free foreign exchange goods out of the bonded warehouse, officer in charge at the warehouse shall release the goods upon presentation of special vouchers with customs' stamp or other documents with customs' stamp.
Article 10.
Operating units and sales departments shall prepare a list of imports, sales and inventories on a monthly basis, and shall complete the verification and cancellation formalities at the customs with the list and the "Retrieving Goods" section of the special voucher for those goods delivered. The customs may inspect and examine relevant books and records from time to time to check the inventories.
Article 11.
When duty-free foreign exchange goods are to be distributed to another location, prior consent must be obtained from the customs at the designated place of shipment, the customs shall process the formalities pursuant to the relevant provisions concerning the shipment of goods from one customs to another customs.
Article 12.
The customs may station at the shops to process the examination and release of the goods vouchers when it deems necessary. The sales department shall provide all necessary offices and office supplies.
If a sales department requests that officers be despatched by the customs to the area outside the jurisdiction of the customs' supervision and administration for the carrying out of the supervision and administration formalities, such sales department shall provide round trip transportation and necessary food and accommodation free of charge, and shall pay the prescribed fees.
Article 13.
When importing spare parts for its maintenance and repair, an operating unit shall apply for an import licence, and the customs shall release the goods upon presentation of the licence and payment of tariffs.
Article 14.
If the duty-free goods are damaged or destroyed for any reasons the sales department shall present periodic report to the local customs, and the same may be verified and cancelled after the determination and verification of the degree of damage or loss by the customs and tariffs are imposed.
Article 15.
Any act in violation of these Measures by the operating units and sales department shall be dealt with by the customs in accordance with the Customs Law of the People's Republic of China, Implementation Regulations on Administrative Punishment under the Customs Law of the People's Republic of China and other relevant provisions.
Article 16.
Each customs may adopt its own implementing rules according to these Measures.
Article 17.
The Customs General Administration shall be responsible for the interpretation of these Measures.
Article 18.
These Measures shall be implemented from June 1, 1991.
