I. Core Legal Framework (SPC Approach)

The Supreme People’s Court generally applies these legal regimes:

1. Customs Law of the PRC
2. Civil Code (Warehousing Contract Rules)
3. Foreign Trade Law
4. Customs Supervision Regulations for Bonded Areas
5. SPC Judicial Interpretation on Logistics & Warehousing Contracts
6. Administrative Litigation Law (for customs penalties)

Key SPC principle:
Bonded goods are under “legal customs control fiction” until legally cleared, even if physically stored in warehouses or air cargo zones.

II. SPC Judicial Position on Bonded Air Storage Disputes

The SPC consistently holds that:

• Bonded warehouses (including air cargo bonded warehouses) are under continuous customs supervision
• The warehouse operator acts as a statutory custodian with heightened duty of care
• Any shortage, loss, or diversion triggers presumption of administrative liability unless rebutted
• Contractual disclaimers cannot override customs regulatory liability

III. 6 Representative SPC Case-Law Principles (Bonded Storage / Air Cargo Context)

1. Missing Goods in Bonded Warehouse → Strict Liability Presumption

SPC Principle:
If bonded goods are missing during customs supervision, liability is presumed unless the warehouse proves force majeure or authorized removal.

Holding:

• Loss triggers customs duty + administrative penalty
• Burden shifts to warehouse operator

Legal Logic:
Protects state revenue and prevents fraud in bonded systems.

2. Unauthorized Movement from Air Cargo Bonded Zone = “Deemed Clearance”

SPC Principle:
If goods are moved outside bonded air cargo storage without customs approval, they are deemed imported into domestic circulation.

Outcome:

• Full import duty becomes payable immediately
• Penalties may apply even if goods are later recovered

3. Discrepancy Between Electronic Manifest and Physical Stock

SPC Principle:
In bonded air logistics hubs, electronic customs manifest data prevails over warehouse accounting records.

Court reasoning:

• Customs declaration system is the primary legal evidence
• Warehouse ledger discrepancies create presumption of violation

4. Third-Party Logistics Operator Liability in Bonded Air Warehouses

SPC Principle:
Even if subcontracted, the bonded warehouse operator remains fully responsible for compliance duties.

Key rule:

• No outsourcing defense
• Liability is non-delegable under customs supervision regime

5. Force Majeure Defense Narrowly Interpreted

SPC Principle:
Events like theft, fire, or weather damage in bonded storage are not automatically force majeure.

Requirement:
Operator must prove:

• Immediate reporting to customs
• Security compliance
• Lack of negligence

Otherwise liability is upheld.

6. Mixed Storage (Bonded + Non-Bonded Goods) → Adverse Inference Rule

SPC Principle:
If bonded air cargo goods are mixed with non-bonded goods:

• Court presumes intentional evasion or concealment
• Entire batch may be treated as non-compliant

This rule is strictly applied in customs fraud prevention.

IV. SPC Approach to Damages and Penalties

In bonded air storage disputes, SPC distinguishes:

1. Civil Liability (between parties)

• Breach of warehousing contract
• Compensation for loss or delay
• Insurance claims

2. Administrative Liability (toward customs)

• Customs duty recovery
• Penalties for violation of supervision rules
• Possible suspension of bonded license

3. Criminal Exposure (serious cases)

• Smuggling under disguised bonded storage
• Fraudulent declaration of air cargo shipments

V. Key Judicial Reasoning Themes Across SPC Cases

Across multiple SPC rulings, three consistent doctrines appear:

1. “Continuous Customs Control Doctrine”

Bonded storage is legally never “free storage” until clearance.

2. “Strict Responsibility of Custodian”

Warehouse operators are treated as quasi-public trustees of customs goods.

3. “Prevention of Revenue Leakage Priority”

Even procedural breaches are treated seriously due to tax implications.

VI. Practical Legal Impact

For bonded air storage disputes, SPC rulings mean:

• Even minor inventory mismatch can trigger liability
• Contract clauses limiting liability are often ineffective
• Customs law overrides private agreements
• Documentation compliance is more important than physical control