(1) the Application for AA-classification Management;

(2) the Report on Assessing Enterprise Business Management Status.

Article 19 In case the customs where one enterprise is registered examines and checks the completeness of the materials submitted and in compliance with the prescribed form upon accepting the application for AA-classification and A-classification management, it should on the spot formulate and issue the Written Decision of Accepting Enterprise Classification Management Application and report to the directly competent customs entity for examination.

In case, for any application for AA-classification management, the directly competent customs entity deems it not necessary to conduct inspection, it should make a decision that AA-classification management shall not be applied within one month upon the acceptance of application; in case the directly competent customs entity deems it necessary to conduct inspection, it should make a decision on whether AA-classification management shall be applied or not within two months upon the conclusion of the inspection.

For any application for A-classification management, the directly competent customs entity should make a decision on whether A-classification management shall be applied or not within three months upon the acceptance of application.

Article 20 The directly competent customs entity shall surrender the application and make the decision that the AA-classification and A-classification management shall not be applied, where any enterprise that applies for AA-classification and A-classification management is subject to one of the following situations:

(1) failing to satisfy the requirements as prescribed in the measures at the time of application;

(2) failing to satisfy the requirements as prescribed in the measures during the period of examination;

(3) being on file for investigation or under investigation by the customs for being suspected of smuggling or transgressing customs control rules and the act of infringing the intellectual property right during the period of examination.

Article 21 In case the situations as prescribed in Article 8 or 14 of the measures do not occur to any C-classification enterprise within one year upon the classification adjustment by customs, the customs shall adjust it to B-classification one through its application.

In case the situations as prescribed in Article 9 or 15 of the measures do not occur to any D-classification enterprise within one year upon the classification adjustment by customs, the customs shall adjust it to C-classification one through its application.

In case any C-classification or D-classification enterprise applying for B-classification or C-classification management is subject to one of the situations as prescribed in Article 20 of the measures, the directly competent customs entity shall surrender the application and make the decision that adjustment is not allowed.

Article 22 In case any C-classification or D-classification enterprise applies for being adjusted into B-classification or C-classification one, it should submit to the directly competent customs entity via the customs where it is registered the Application of Enterprise Management Classification Adjustment. In case the customs where it is registered examines and checks the materials complete and in compliance with the prescribed form, it should on the spot formulate and issue the Written Decision of Accepting Enterprise Classification Management Application and report to the directly competent customs entity for examination.

The directly competent customs entity should make the decision on whether or not to make adjustment within one month upon the acceptance of application.

Article 23 The directly competent customs entity where it is registered should make the decision on adjusting its management classification in accordance with Chapter II of the measures within one month upon the day when finding one enterprise subject to one of the following situations of degrading classification:

(1) AA-classification or A-classification enterprise failing to meet the requirements for original management classification;

(2) B-classification enterprise coinciding with one of the requirements for C-classification or D-classification management;

(3) C-classification enterprise being subject to one of the requirements for D-classification management.

Article 24 In case the decision is made by the directly competent customs entity on whether or not to make adjustment of enterprise management classification, the customs where the enterprise is registered shall deliver the decision to the enterprise within 10 working days upon making the decision.

The customs shall implement corresponding administrative measures on the enterprise in accordance with the after-adjustment management classification upon making the decision of adjustment.

In case the enterprise withdraws the application for management classification before the customs makes the decision on whether or not to make adjustment of enterprise management classification, the customs shall terminate the examination and check of management classification adjustment and make the decision on terminating the examination and check of management classification adjustment.

Article 25 In case AA-classification or A-classification enterprise is on file for investigation or under investigation for being suspected of smuggling, the customs shall suspend the management measures corresponding to its management classification, during which time it shall be subject to the management measures for B-classification enterprises.

Article 26 In case only the title or the customs registration code of the enterprise alters, its management classification shall be continuously applied but adjusted under one of the following circumstances in the forms as follows:

(1) in case the surviving enterprise after division inherits major rights and obligations or the credits and debts of the enterprise before division, the management classification shall be applied to the one of the enterprise before division and the rest divided enterprises shall be regarded as the enterprise of initial registration;

(2) in case the enterprise is divided in the form of dissolution, the divided enterprise shall be regarded as the enterprise of initial registration;

(3) in case the enterprise is merged, it shall be subject to the management classification of the surviving enterprise after merger;

(4) in case the enterprise is consolidated, the consolidated enterprise shall be regarded as an enterprise of initial registration.