The Regulations on the Implementation of Customs Administrative Penalties are the main basis for customs to impose administrative penalties. There are two types of administrative penalties: smuggling and violation of customs supervision regulations. According to the Announcement No. 194 of the General Administration of Customs in 2018, the customs shall handle suspected smuggling violations in the cross-border e-commerce field in accordance with the law. The customs anti-smuggling department shall investigate, review and execute the case.
1. Penalties for smuggling
Articles 9, 10 and 11 of the Regulations on the Implementation of Customs Administrative Penalties stipulate penalties for smuggling, which include the following categories.
(1) Confiscate smuggled goods, articles and illegal proceeds. Illegal proceeds refer to the proceeds directly generated by smuggled goods and articles, including the proceeds from the sale of goods, profits obtained through smuggling, etc.
(2) A fine may be imposed concurrently. This means that a fine is imposed at the same time as the confiscation of smuggled goods, articles and illegal proceeds.
(3) Confiscate or destroy the tools used to commit the crime. Means of transport specially used for smuggling or goods and articles used to cover up smuggling, or means of transport specially used for smuggling or goods and articles used to cover up smuggling more than three times within two years, shall be confiscated; special equipment, interlayers, and secret compartments used to hide smuggled goods and articles shall be confiscated or ordered to be demolished.
(4) Cancellation of the qualification to conduct customs business. For enterprises that have committed smuggling crimes or have committed smuggling more than twice within one year and are allowed by the customs to engage in the transportation, storage, processing, assembly, consignment, display and other businesses of customs-controlled goods, the customs may revoke their registration; customs declaration enterprises and customs declaration personnel that meet the above circumstances shall be prohibited from engaging in customs declaration activities.
2. Violations of customs supervision regulations and their penalties
Article 12 of the Regulations on the Implementation of Customs Administrative Penalties stipulates: “Violations of the Customs Law and other relevant laws, administrative regulations and rules that do not constitute smuggling are violations of customs supervision regulations.”
According to the Regulations on the Implementation of Customs Administrative Penalties, cross-border e-commerce violations of customs supervision regulations mainly include the following: First, in violation of national management regulations, cross-border e-commerce channels import goods and articles prohibited from import by the country; second, in violation of national management regulations, cross-border e-commerce channels import national restricted import goods and articles and cannot provide licenses; third, false declaration or untrue declaration of “three orders” data; fourth, customs declaration companies and customs declaration personnel fail to conduct a reasonable review of the information provided by the client, or due to negligence in work, key information is not declared or declared falsely; fifth, unauthorized disposal of cross-border e-commerce goods without the consent of the customs; sixth, unauthorized storage of cross-border e-commerce goods outside the supervision area; seventh, in the process of operating cross-border e-commerce goods warehousing, goods are lost, the quantity is short, or the records are untrue, and no legitimate reasons can be provided.
In the practice of punishing violations, according to the specific behavior of the enterprise and the degree of damage caused, the customs can impose warnings, fines, confiscation of illegal gains, cancellation of registration and other penalties on the above-mentioned behaviors.