General Administration of Customs, PRC Customs Measures for the Administration of Enterprise Classification

(2) its import and export volume in the preceding year is at least US$30 million (or US$10 million for enterprises in the central and western regions) (Article 6).

The criteria for a consignee or consignor of imports and exports in Category A shall include:

(1) it has been subject to Category B administration for at least one year;

(2) it has not committed any smuggling crime or activity, or any act in violation of customs regulatory provisions for one year,

(3) it has not been subjected to customs administrative penalty for importing or exporting goods that infringe upon intellectual property rights for one year,

(4) it has not owed any tax or fine for one year;

(5) its import and export volume is at least US$500,000 in the preceding year;

(6) its error rate of handling customs clearance for imports and exports in the preceding year is below 3%;

(7) its accounting system is sound, and its business records are truthful and complete; and

(8) it does not have any bad record with the department of commerce, People's Bank of China, administration for industry and commerce, tax bureau, inspection and quarantine authority, foreign exchange bureau, supervisory authority and other administrative departments or organizations (Article 7).

Processing enterprises registered with customs shall be governed by the same system of categories as consignees and consignors (Article 11).

A customs clearance agency in Category AA shall fulfil criteria such as:

(1) it has been subjected to Category A administration for at least one year; and

(2) the total number of customs declaration forms and record filing lists for imports and exports it has handled on behalf of other companies in the preceding year is at least 20,000 (or 5,000 for enterprises in central and western regions) (Article 12).

Customs clearance agencies in Category A shall fulfil the following criteria:

(1) it has been subjected to Category B administration for at least one year;

(2) the agency and its personnel responsible for customs clearance have not committed any smuggling act or activity, or any act in violation of customs regulatory provisions for one year;

(3) the goods for which it handled customs clearance have not been confiscated by customs for infringement of intellectual property rights for one year;

(4) it has not owed any tax or fine for one year;

(5) the total number of customs declaration forms and record filing lists for imports and exports it has handled on behalf of other companies in the preceding year is at least 3,000;

(6) the error rate of handling customs clearance for imports and exports on behalf of other companies in the preceding year is below 3%;

(7) it has set up accounts books and business records in accordance with the law to record all entrusted customs clearance activities in a truthful, accurate and complete manner; and

(8) it has no bad record with the department of commerce, People's Bank of China, administration for industry and commerce, tax bureau, inspection and quarantine authority, foreign exchange bureau, supervisory authority and other administrative departments or organizations (Article 13).

Consignees or consignors of imports and exports and customs clearance agencies that have carried out smuggling activities shall be subject to Category C administration. Consignees or consignors of imports and exports and customs clearance agencies that have committed crimes of smuggling shall be subject to Category D administration (Article 8-9, 14-15).

Related Legislation: PRC Customs Law, Jul 8 2000

Repealed Legislation: PRC Customs Measures for the Implementation of Enterprise Administration by Means of Classification, Mar 31 1999, CLP 1999 No.6 p.; and Provisions for the Examination and Approval of the Use by Eligible Large-scale High and New Technology Enterprises of Express Customs Clearance Measures, Jul 20 2001, CLP 2001 No.7 p.11