Interpretation of the new “Customs Inspection Regulations”: procedures, powers and obligations of the auditee

The newly revised “Customs Inspection Regulations” and its implementation methods provide a more complete framework for customs law enforcement, focusing on enhancing the scientificity, transparency and compliance of inspections. The following are the main contents of the regulations:

Improvement of audit procedures

The new “Customs Inspection Regulations” and “Customs Inspection Regulations Implementation Measures” ensure that law enforcement personnel faithfully perform their duties through a series of scientific program designs. These procedures mainly include:

1. Inspection Notification System: Clearly inform the content of the audit implementation to protect the right to know of the people being audited. The rights of the subject during an audit include being informed of the implementation of the audit, explanation of rights and notification of the audit conclusion [1].

2. Avoidance system: It stipulates that customs staff who have a direct interest in the person being inspected must actively recuse themselves from the situation to prevent unfair law enforcement [1].

3. Supervision and restriction mechanism: The internal approval process has been optimized, and the approval authority for major inspection powers has been changed from “approval by the director of customs” to “the director directly under the customs or the subordinate customs authorized by him”. “With the approval of the Chief Executive”, the law enforcement behavior has been further standardized and supervision measures have been strengthened [1].

Definition of audit powers

The new “Customs Inspection Regulations” clarifies the duties and powers that the Customs has in conducting inspections, including but not limited to:

• Inspect and copy the account books and related information of the person being audited.
• Inspect production operations and goods related to import and export activities.
• Ask the legal representative and other main responsible persons of the person being audited.
• Inquire about the deposit account of the person being audited in a financial institution, and seize and seize relevant materials and goods[2].

Obligations of the auditee

As an import and export enterprise, the auditee’s legal obligations include:

1. Accept audits in accordance with the law: truly reflect the situation of the import and export business and provide the required account books and documentary information.

2. Maintain the integrity of accounting data: Responsible for truly and accurately recording and reflecting import and export business, and keeping relevant data within the prescribed period.

3. Cooperate with customs work: Provide necessary working conditions and assistance. If the person being inspected fails to cooperate, the customs has the right to impose administrative penalties, and the new “Customs Inspection Regulations” also increase the severity of this penalty [2].

The implementation of the new “Customs Inspection Regulations” aims to further enhance the fairness and effectiveness of customs inspections through standardized procedures and clear powers and obligations.