No.14 Announcement of General Administration of Customs in 2009

IV The confirmation of time limit for levying interest

1、To the bonded materials and finished product in processing trade for domestic sales, the start date of levying interest on those articles under processing trade contract is stipulated as the date of importing the first bulk of materials. When the materials and finished product under class E electronic account books in processing trade sell in domestic market, the start date is the latest day of verification and cancellation on the electronic account books of materials and finished product for domestic sales.

The expired date of levying interest of delayed payment on the upward goods is stipulated as the date when the customs issues the letter of payment of duty.

2、For the bonded materials and finished product in processing trade which break customs supervision and sell without the approval from related department, the start date of levying interest of delayed payment on materials and finished product in processing trade is stipulated as the day when importing the first bulk of materials under the corresponding processing trade contract. For the goods for domestic sales and related to copies of contract, and the materials or finished product which can’t match the contract accordingly, the start date of levying interest is the day of importing first bulk of materials under the latest contract. If materials and finished product under the class E electronic account books in processing trade sell in domestic without the approval from government, the start date of levying interest is the latest day for verification and cancellation on the related electronic account books. If the start date of levying interest still can’t confirmed according to the upward ways, the interest on delayed payment will be not collected any more.

The expired date for levying interest on illegal sales in domestic is the date of the sales day of bonded materials and finished product. If the date of beginning to sell in domestic can’t confirm, the expired date is the day that discovered by the customs.

For the bonded materials and finished product in processing trade to sell in domestic in illegal way, the overdue fine shall be levied according the regulation on tariffs promulgated by General Administration of Customs.

For the bonded goods in processing trade which need a surcharge but the customs doesn’t take it as illegal act, the confirm of time limit for levying interest on delayed payment can conform to the upward stipulation.

3、For the leftover materials, surplus materials, inferior product, byproduct and destroyed bonded materials, the levying of interest on delayed payment shall conduct according to the upward stipulation.

V、For bonded goods in processing trade manual under the management of deposit cash transfer, and the interest rate of delayed payment collected by customs exceed the interest rate of cash deposit, when making the procedure of tax payment for domestic sales, Bank of China shall withdraw the letter of payment of duty after making a sign, and the customs will make two more letters of payment of duty, one for completely transferring the interest of cash deposit to interest on delayed payment, the other to charge enterprises’ tax payment for the supplementary of the shortage of cash deposit.