PRC Customs Law

Statutory Power

Broad authority is granted to customs officers to inspect cargoes, search transport vehicles, and examine financial accounts. They can detain goods that are suspected of infringing intellectual property rights or violating import restrictions. These powers can be exercised without a judicial warrant inside designated customs control zones at ports, airports, and border crossings.

Tariff Administration

Assessment of duties is carried out according to the national tariff schedules and valuation rules established under this legislation. The law provides the legal mechanism for determining the transaction value of imported items and outlines the rules for duty exemption zones. It also governs the administration of bonded warehouses, which allow companies to defer tax payments until goods enter domestic circulation.

Enforcement Activity

Penalties for non-compliance are severe and can include the confiscation of illegally imported items and the suspension of business operations. The customs department works in coordination with the police and tax authorities to prosecute criminal smuggling syndicates. Even minor clerical errors can result in significant administrative fines if they affect the amount of duty collected by the state, prompting multinational firms to invest heavily in specialized compliance software and training for their local logistics managers to avoid administrative delays.