(I) Nature of Customs

Article 2 of the Customs Law of the People’s Republic of China (hereinafter referred to as the Customs Law) stipulates: “The Customs of the People’s Republic of China is the state’s entry and exit supervision and management agency.” This provision clarifies the nature of customs, which includes the following meanings:

1. Customs is a state administrative agency

Customs is a direct agency of the State Council and is an administrative law enforcement agency that supervises and manages the entry and exit activities of means of transport, goods and articles entering and leaving the country on behalf of the state.

2. Customs is a state entry and exit supervision and management agency

The scope of supervision and management implemented by customs is: entry and exit of the customs territory and related activities. The objects of supervision and management implemented by customs are: all means of transport, goods and articles entering and leaving the customs territory.

3. Customs supervision and management activities are state administrative law enforcement activities

The basis for customs law enforcement is the Customs Law and other relevant laws and administrative regulations. The General Administration of Customs may also formulate regulations in accordance with laws and regulations, decisions and orders of the State Council as a supplement to the basis for law enforcement. The people’s congresses and people’s governments of provinces, cities, autonomous regions and municipalities directly under the Central Government shall not formulate customs laws and regulations, and the local laws and regulations formulated by them are not the basis for customs law enforcement.

(II) Customs’ tasks

According to the Customs Law, the basic tasks of the customs include supervision and management, collection of taxes and fees, investigation and crackdown on smuggling, and compilation of customs statistics.

1. Supervision

Customs supervision is the most basic task of the customs. It is an administrative management implemented in accordance with the law on the entry and exit of means of transport, goods and articles. It is a general term for all administrative law enforcement activities of the customs.

2. Taxation

Taxation work includes the collection of customs duties and the collection of taxes by customs on behalf of imports (taxes collected on behalf of customs include value-added tax and consumption tax), based on the Customs Law and the Regulations of the People’s Republic of China on Import and Export Tariffs.

3. Anti-smuggling

Customs is the competent authority for combating smuggling. In addition to customs, public security, industry and commerce, taxation, tobacco monopoly, etc. also have the right to investigate and crackdown on smuggling, but smuggling cases seized by these departments must be handled uniformly in accordance with legal provisions.

4. Statistics

Customs statistics are based on actual import and export goods as the object of statistics and analysis. Inbound and outbound articles exceeding the reasonable quantity for personal use are also included in customs statistics.

The above four basic tasks are a unified and organic whole. In addition, customs protection of intellectual property rights, customs anti-dumping and anti-subsidy investigations, etc. are also the tasks of today’s customs.