Decree No. 195 of the General Administration of Customs of the P. R. China
[2010-12-09 09:56:19]
The Measures of the Customs of the People's Republic of China on the Control of Processing-Trade Goods shall be revised as per this Decision and then be re-promulgated.
Article 2 These Measures apply to the formalities for the archival filing, import and export customs declarations, processing, supervision, verification and writing-off concerning processing-trade goods.
The archival filings, import and export customs declarations, verification and writing-off concerning processing-trade goods shall be conducted in the form of paper documents and electronic data.
Article 3 Meaning of the following terms used in these Measures:
The term "processing trade" refers to the business activities in which the operating enterprise imports all or part of the raw or ancillary materials, spare parts, components, and packaging materials (hereinafter referred to as materials/parts), and re-exports finished products after processing or assembling the materials/parts. It includes the processing with foreign client-supplied materials and the processing with imported materials.
The term "processing with foreign client-supplied materials" refers to the business activities in which the operating enterprise receives materials/parts imported from a foreign enterprise without needing to pay foreign exchange for the import, and carries out processing or assembling with the materials/parts as per the requirements of the foreign enterprise, only charging for the processing or assembling, while any finished products are to be sold and marketed by the foreign enterprise.
The term "processing with imported materials" refers to the business activities in which the operating enterprise imports materials/parts by paying foreign exchange for their processing, and exports finished processed products for sale abroad.
The term "processing-trade goods" refers to the processing trade-covered imported materials/parts, finished processed products, and leftover materials, inferior products, and byproducts generated from the processing, and so on.
The term "processing-trade enterprise" shall include the operating enterprises and the processing enterprises both registered with the Customs authorities.
The term "operating enterprise" refers to various import/export enterprises and foreign-funded enterprises that conclude the processing-trade import/export contracts with foreign parties, and the foreign-oriented processing/assembling service companies that have obtained the license for processing with foreign client-supplied materials.
The term "processing enterprise" refers to the manufacturing enterprises that, based on entrustment by the operating enterprise, assume processing or assembling of the imported materials/parts and have the status of legal person; and the factories that are established by the operating enterprise and that practice relatively independent accounting and have obtained the industrial and commercial business certificate (license), though without the status of legal person.
The term "unit consumption quantity of materials", shortly as "unit consumption", refers to the quantity of the imported materials/parts consumed through processing by the processing-trade enterprise per unit of finished export-oriented products under normal production conditions.
The term "transfer for deep processing" refers to the business activities in which the processing-trade enterprise transfers the products processed with bonded imported materials/parts to another processing-trade enterprise for further processing, and afterwards re-exports the finished products.
The term "undertaking enterprise" refers to the producing enterprise that concludes a processing contract with the operating enterprise so as to undertake the outward processing operations entrusted by the operating enterprise. The undertaking enterprise must register with the Customs authorities and have the corresponding production capacity.
The term "outward processing" means that the operating enterprise, owing to the restrictions by its own production characteristics and conditions, entrusts the undertaking enterprise to process the processing-trade goods on the strength of the Customs approval and relevant formalities, while the undertaking enterprise shall deliver the finished processed products back to the operating enterprise within a prescribed time limit for the purpose of final re-exportation by the operating enterprise.
The term "verification and writing-off" means the Customs authorities make verification on the application by the processing-trade operating enterprise for release from Customs supervision against prescribed documents/certificates after its completing the Customs formalities for re-exportation or domestic sale of its processed products, and then conduct the release from Customs supervision over the operating enterprise after confirming its application as genuine and compliant with relevant laws, administrative regulations and rules.
Article 4 Except when the State has otherwise provisions, where the imported materials/parts under processing trade fall within import restrictions imposed by the State, the operating enterprise may be exempt from submitting the import license to the Customs; where the finished export-oriented products under processing trade fall within the export restrictions imposed by the State, the operating enterprise shall submit the export license to the Customs.
Article 5 Where the imported materials/parts under processing trade are under the control on bonded goods, the Customs shall, after the finished processed products are exported, make verification and writing-off according to the verified quantity of the goods actually processed and exported. Where taxes are collected in advance pursuant to provisions, the Customs shall, after the finished processed products are exported, return the collected taxes according to the verified quantity of the goods actually processed and exported.
Where export duties shall be levied on the exported products under processing trade, the Customs shall levy the export duties pursuant to relevant provisions.
Article 6 The Customs shall apply the system of guarantee to processing-trade goods pursuant to relevant State provisions.
Article 7 Without prior approval by the Customs authorities, none of processing-trade goods may be mortgaged.
Article 8 The Customs may, according to the supervision needs, make inspections over the processing-trade enterprises. The inspected enterprises shall render cooperation. Customs inspections may not affect the normal business activities of the inspected enterprises.
Measures of the Customs of the People's Republic of China on the Control of Processing-Trade Goods
(Released by the GACC's Decree No. 113 on February 26, 2004, and amended as per both the Decision by the General Administration of Customs of China on Revising the "Measures of the Customs of the People's Republic of China on the Control of Processing-Trade Goods" released by the GACC's Decree No. 168 on January 14, 2008 and the Decision (Ⅱ) by the General Administration of Customs of China on Revising the "Measures of the Customs of the People's Republic of China on the Control of Processing-Trade Goods" released by the GACC's Decree No. 195 on November 1, 2010.)
Chapter I General Provisions
Article 1 In order to promote the healthy development of processing trade and standardize the Customs control on processing-trade goods, these Measures are formulated in accordance with the Customs Law of the People's Republic of China and other relevant laws and administrative regulations. Article 2 These Measures apply to the formalities for the archival filing, import and export customs declarations, processing, supervision, verification and writing-off concerning processing-trade goods.
The archival filings, import and export customs declarations, verification and writing-off concerning processing-trade goods shall be conducted in the form of paper documents and electronic data.
Article 3 Meaning of the following terms used in these Measures:
The term "processing trade" refers to the business activities in which the operating enterprise imports all or part of the raw or ancillary materials, spare parts, components, and packaging materials (hereinafter referred to as materials/parts), and re-exports finished products after processing or assembling the materials/parts. It includes the processing with foreign client-supplied materials and the processing with imported materials.
The term "processing with foreign client-supplied materials" refers to the business activities in which the operating enterprise receives materials/parts imported from a foreign enterprise without needing to pay foreign exchange for the import, and carries out processing or assembling with the materials/parts as per the requirements of the foreign enterprise, only charging for the processing or assembling, while any finished products are to be sold and marketed by the foreign enterprise.
The term "processing with imported materials" refers to the business activities in which the operating enterprise imports materials/parts by paying foreign exchange for their processing, and exports finished processed products for sale abroad.
The term "processing-trade goods" refers to the processing trade-covered imported materials/parts, finished processed products, and leftover materials, inferior products, and byproducts generated from the processing, and so on.
The term "processing-trade enterprise" shall include the operating enterprises and the processing enterprises both registered with the Customs authorities.
The term "operating enterprise" refers to various import/export enterprises and foreign-funded enterprises that conclude the processing-trade import/export contracts with foreign parties, and the foreign-oriented processing/assembling service companies that have obtained the license for processing with foreign client-supplied materials.
The term "processing enterprise" refers to the manufacturing enterprises that, based on entrustment by the operating enterprise, assume processing or assembling of the imported materials/parts and have the status of legal person; and the factories that are established by the operating enterprise and that practice relatively independent accounting and have obtained the industrial and commercial business certificate (license), though without the status of legal person.
The term "unit consumption quantity of materials", shortly as "unit consumption", refers to the quantity of the imported materials/parts consumed through processing by the processing-trade enterprise per unit of finished export-oriented products under normal production conditions.
The term "transfer for deep processing" refers to the business activities in which the processing-trade enterprise transfers the products processed with bonded imported materials/parts to another processing-trade enterprise for further processing, and afterwards re-exports the finished products.
The term "undertaking enterprise" refers to the producing enterprise that concludes a processing contract with the operating enterprise so as to undertake the outward processing operations entrusted by the operating enterprise. The undertaking enterprise must register with the Customs authorities and have the corresponding production capacity.
The term "outward processing" means that the operating enterprise, owing to the restrictions by its own production characteristics and conditions, entrusts the undertaking enterprise to process the processing-trade goods on the strength of the Customs approval and relevant formalities, while the undertaking enterprise shall deliver the finished processed products back to the operating enterprise within a prescribed time limit for the purpose of final re-exportation by the operating enterprise.
The term "verification and writing-off" means the Customs authorities make verification on the application by the processing-trade operating enterprise for release from Customs supervision against prescribed documents/certificates after its completing the Customs formalities for re-exportation or domestic sale of its processed products, and then conduct the release from Customs supervision over the operating enterprise after confirming its application as genuine and compliant with relevant laws, administrative regulations and rules.
Article 4 Except when the State has otherwise provisions, where the imported materials/parts under processing trade fall within import restrictions imposed by the State, the operating enterprise may be exempt from submitting the import license to the Customs; where the finished export-oriented products under processing trade fall within the export restrictions imposed by the State, the operating enterprise shall submit the export license to the Customs.
Article 5 Where the imported materials/parts under processing trade are under the control on bonded goods, the Customs shall, after the finished processed products are exported, make verification and writing-off according to the verified quantity of the goods actually processed and exported. Where taxes are collected in advance pursuant to provisions, the Customs shall, after the finished processed products are exported, return the collected taxes according to the verified quantity of the goods actually processed and exported.
Where export duties shall be levied on the exported products under processing trade, the Customs shall levy the export duties pursuant to relevant provisions.
Article 6 The Customs shall apply the system of guarantee to processing-trade goods pursuant to relevant State provisions.
Article 7 Without prior approval by the Customs authorities, none of processing-trade goods may be mortgaged.
Article 8 The Customs may, according to the supervision needs, make inspections over the processing-trade enterprises. The inspected enterprises shall render cooperation. Customs inspections may not affect the normal business activities of the inspected enterprises.
Source: ETCN
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