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Provisions Governing the Control over Goods, Means
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1986.04.01
CUSTOMS GENERAL ADMINISTRATION
 PROVISIONS  GOVERNING  THE CONTROL OVER GOODS, MEANS OF CONVEYANCE,
LUGGAGE AND POSTAL ARTICLES ENTERING OR LEAVING THE SPECIAL ECONOMIC
ZONES
 (Promulgated  on March 25, 1986 by the General Administration of
Customs and approved on March 21, 1986 by the State Council)
CONTENTS
CHAPTER I GENERAL PRINCIPLES
CHAPTER II CONTROL OVER GOODS ENTERING OR LEAVING SPECIAL ZONES
 CHAPTER  III  CONTROL  OVER  THE  MEANS  OF CONVEYANCE USED FOR
ENTERING OR LEAVING SPECIAL ZONES
 CHAPTER  IV  CONTROL OVER LUGGAGE AND POSTAL ARTICLES ENTERING OR
LEAVING SPECIAL ZONES
CHAPTER V SUPPLEMENTARY PRINCIPLES
CHAPTER I GENERAL PRINCIPLES
 @@  Article  1. These Regulations have been formulated with a
view to promoting the development of Special Economic Zones, to
safeguarding  national  interests  and  ensuring  the  smooth
progression of the socialist economic construction.
 @@  Article  2.  These Regulations shall apply to the four Special
Economic Zones  of Shenzhen, Zhuhai, Shanto and Xiamen (hereinafter
referred to as Special Zones).
 @@  Article  3.  The goods, means of conveyance, luggage and postal
articles entering  or  leaving  the  Special Zones must go through
railway stations, road junctions, sea ports, airports or post offices
where there are Customs establishments  and  shall be subject to
Customs  declaration  and  to supervision and control by Customs
authorities.
 @@  Article  4.  All  foreign  trade and production enterprises
within the Special  Zones engaged in import or export business shall
take  the  documents of  approval  issued  by  the  foreign
economic  relations  and  trade administration  departments  at
provincial  level  and above, or by the People's  Government  of
the  Special  Zones  and  conduct  registration formalities at the
Customs office.
 Where  deemed  necessary,  Customs officers may be dispatched
to  the  aforementioned  production  enterprises  to  undertake
supervision and control and the handling of Customs procedures. All
such enterprises shall provide the necessary offices and accommodation
free of charge.
 Regular  written reports on the utilisation, sales and inventory
of the imported goods shall be submitted to the Customs office by the
enterprises mentioned in para. one of this Article and checks will be
conducted by the Customs offices.
 @@  Article 5. Any smuggling and other illegal activities carried
out by taking  advantage of preferential treatments granted to the
Special Zones by the State or taking advantage of the convenience of
location are strictly prohibited. The Customs office is entitled to
search, in accordance with the Provisional Customs Law of the People'S
Republic of China, any premises in the Special Zones which are under
suspicion of concealing smuggled goods.
 @@  Article  6.  The  relevant State regulations on control over
imports and exports  shall  be  complied with in respect of goods,
means of conveyance, passengers' luggage, and postal articles sent
from  foreign countries and areas  such as Hong Kong and Macao
(hereinafter referred to as areas abroad) via the Special Zones en
route to non-Special Zone destinations.
 @@  Article 7. Statistics shall be collected by the Customs office
in the Special Zones, on the inward and outbound goods, means of
conveyance, luggage  and  postal articles in terms of import, export
and traffic between the Special Zones and non-Special Zone areas
respectively.
CHAPTER II CONTROL OVER GOODS ENTERING OR LEAVING SPECIAL ZONES
 @@  Article 8. The consignee, consignor or their agents shall
make a written declaration to the Customs office in respect of goods
entering or leaving  the  Special Zones, and submit the licence
and  other relevant documents  and  papers  for  inspection,  in
accordance with the relevant regulations.
  @@  Article   9.   The  Customs  duties  and  Consolidated
Industrial  and Commercial  Tax (product tax or value added tax) on
goods imported, upon the approval  of  the competent authorities
specified by State regulations, by administrative organs, enterprises,
institutions  and  other units in the Special Zones for consumption
within the Special Zones, shall be dealt with as follows:
 (a)  Customs  duties  and  taxes  shall be exempted on imported
machinery,  equipment,  spare  parts,components,  raw  and  other
materials,  fuel  and  vehicles  for  transportation needed by
construction and production projects in  the Special Zones, and on
foodstuffs for tourism and the catering trade as well as articles for
office  use  and  means of transportation imported in reasonable
quantities 

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