The amendment, which will come into effect from October 1 this year, includes measures to facilitate inspections, optimise inspection procedures and punish violations, according to the decision by the State Council posted on the official website of the Chinese government.
Customs inspections are intended to supervise the authenticity and legitimacy of exports and imports after customs clearance.
China first unveiled regulations on customs inspections in 1997.
The amendment showed that customs authorities have the right to collect goods from industry associations, government organs and companies, as well as information on foreign trade activities from associations.
The amendment raised the penalty amount for violations discovered during the inspection, state-run Xinhua news agency reported.
The decision also restricted the conditions of inspection without prior notice to certain emergency situations, such as highly suspicious targets, and when goods and related documents could be transferred, hidden or destroyed.