Detailed Rules for the Implementation of People's Republic of China (PRC) and Qingdao Customs Supervision on Goods, Articles and Means of Transport Entering and Leaving Qingdao Bonded Zone.

Chapter I General Provisions Article 1 These Detailed Rules are formulated in accordance with the Customs Law of People's Republic of China (PRC) and other relevant laws and regulations. Article 2 Qingdao Bonded Zone (hereinafter referred to as Bonded Zone) is an area under customs supervision. The Customs shall set up an office in the bonded area, exercise its functions and powers according to law, and supervise the means of transport and the goods and articles carried by individuals entering and leaving the bonded area; Collecting customs duties and other taxes and fees; Seize smuggling; Compile customs statistics and handle other customs business. Article 3 The boundary between the bonded area and the non-bonded area (referring to other areas in China, the same below) shall have perfect isolation facilities.

Vehicles carrying goods in and out of the bonded area must be approved by the customs and run along the route designated by the customs.

Goods, means of transport and articles carried by individuals entering or leaving the bonded area must be truthfully declared to the customs through the entrances and exits designated by the customs and subject to customs inspection. Article 4 Only administrative institutions and related enterprises can be established in the bonded area.

Except for security personnel, no other personnel may live in the bonded area. Article 5 Enterprises in the bonded area shall go through the registration formalities with the customs with the approval documents of the competent department designated by the Qingdao Municipal People's Government and the business license issued by the administrative department for industry and commerce.

The establishment of production projects restricted and controlled by the state in the bonded area must be approved by the competent department prescribed by the state.

Bonded goods and processed products in the bonded area must be transported out of the country. If it is necessary to transport the goods to the non-bonded area under special circumstances, an application shall be made to the customs, and after approval by the customs, the import and tax payment procedures shall be handled according to the regulations. Article 6 A reasonable amount of materials and articles imported by enterprises and administrative institutions in the bonded area for their own use shall only be used in the bonded area, and shall not be transported out of the bonded area without the approval of the customs. Article 7 The articles carried by persons entering or leaving the bonded area shall be limited to a reasonable amount for their own use. Articles prohibited by the state from entering or leaving the country shall not be transported into or out of the bonded area.

Goods to be sold to non-bonded areas shall not be transported into bonded areas. If there are special needs, it should be reported to the General Administration of Customs for approval. Article 8 Production and storage enterprises in the bonded area shall establish special account books on the import, processing, storage, use, export and sales of goods, and submit them to the customs for verification on a regular basis. The customs has the right to inspect the goods and related business premises in the bonded area. Relevant enterprises and administrative institutions shall provide office space and necessary facilities free of charge. Article 9 The Customs has the right to regularly or irregularly inspect the goods, articles and property of import and export enterprises, institutions and enterprises enjoying import and export tax reduction and exemption treatment, and related economic activities. The relevant units shall provide the Customs with authentic and effective contracts, invoices, account books, bills, records, documents, business correspondence, audio and video recordings and other relevant materials. Chapter II Supervision and Tax Preferences for Goods Entering and Leaving the Bonded Zone Article 10 Machinery and equipment, capital construction materials, production vehicles, vehicles and office supplies imported by the Bonded Zone for use in the bonded zone, raw materials, spare parts, components, fuels and packaging materials imported for processing export products, re-exported goods and products processed and exported in the Bonded Zone are exempted from import and export licenses. Article 11 Enterprises and administrative institutions in the bonded area shall be exempted from customs duties and consolidated industrial and commercial tax (product tax and value-added tax) when importing and exporting the following goods:

1. Imported machinery, equipment and other infrastructure materials needed for infrastructure construction in the bonded area;

2. Enterprises in the bonded area import building materials, production and management equipment, fuel for production, a reasonable number of production vehicles, means of transport and office supplies for their own use, as well as maintenance spare parts required for the above machines, equipment and vehicles;

3. The administrative agencies of the bonded area import a reasonable number of vehicles, management equipment and office supplies for their own use;

4. Bonded products exported by bonded enterprises. Article 12 The following goods in the bonded area shall be bonded:

1. Special raw materials, spare parts, components and packaging materials (hereinafter referred to as materials) needed by enterprises in the bonded area to produce and process export products;

Second, transit goods.

Articles outside the scope stipulated in Articles 10 and 11 of this chapter shall be taxed according to regulations. Chapter III Administration of Imported Goods in Bonded Zone Article 13 Goods imported from non-bonded zones to bonded zones shall be regarded as exports.

For the export goods brought into the bonded area from the non-bonded area, the consignor or his agent shall fill in the export goods declaration form in triplicate, and report to the customs with the export contract, commercial invoice (photocopy) and packing list (photocopy). Goods subject to export license management shall also be submitted for inspection. For commodities subject to export duties, the customs shall collect export duties according to regulations. Article 14 When imported goods are transported into the bonded zone through other ports, the relevant formalities shall be handled in accordance with the customs' supervision regulations on the transit of imported goods. Article 15 For imported goods, bonded goods and transit goods brought into the bonded area, the consignee in the bonded area or his agent shall fill out the Import Goods Declaration Form in triplicate (including the transit goods declaration form in quadruplicate); Bonded goods shall be stamped with the stamp of "bonded goods", re-exported goods shall be stamped with the stamp of "re-exported goods", and relevant documents such as import contract, commercial invoice (photocopy), packing list (photocopy) and bill of lading shall be submitted to the customs for declaration, and the customs shall examine and release them accordingly. Article 16 Imported goods and articles (including materials and parts needed for the production of export products) brought into the bonded area from the non-bonded area shall not be refunded after going through the import formalities.