GACC Announcement No.33, 2014 on Processing-Trade Goods Destruction Matters

In accordance with China Customs administrative measures on supervision of processing-trade goods (GACC Decree No.219) and on processing-trade leftover materials, defective goods, by-products and damaged bonded goods (GACC Decrees No.111 and No.218), hereby announced are the matters on destruction of processing-trade goods:

1. The destruction of processing-trade goods refers to the disposal by processing-trade firms of the leftover materials, defective goods, by-products or damaged bonded goods that cannot be sold domestically nor returned through entrustment to qualified agencies after customs declaration by means of incineration, landfill or other harmless treatment to change their physical, chemical and biological characteristics.

2. The processing-trade firms shall entrust the destruction to the legally-qualified agencies engaging in waste disposal in accordance with relevant law or regulations.

3. Upon their declaration to the customs, the processing-trade firms shall submit the following documents concerning the destruction:

(1) Customs Declaration for Destruction of Processing-Trade Goods (with Income from Destruction) (see Annex 1), Customs Declaration for Destruction of Processing-Trade Goods (No Income from Destruction) (see Annex 2), and the Destruction Scheme;

(2) Explanation for the Inability to Domestic Sale or Return;

(3) Certificate for Qualification of the Destroying Agency, and the entrustment contracts between the agency and the processing-trade firms;

(4) Others required.

As regards destruction of the goods processed with foreign client-supplied materials, the submission shall include the Destruction Statement by the goods owner; as regards the defective products, the submission shall include their unit consumption data and the list of original imported materials consumed by them as per their unit consumption.

4. The firms shall finish the destruction within prescribed time-limit and shall declare to the customs within their handbook expiring date or electronic account verification period.

(1) Where the firms earn no income from the destruction, as regards the materials or defective goods, the applicable supervision mode shall be "destruction of materials (code 0200)" (the defective goods shall be converted into materials as per their unit consumption and be declared as materials); as regards the leftover materials or by-products, the applicable supervision mode shall be "destruction of leftover materials (code 0400)".

(2) Where the firms earn certain income from the destruction, they shall declare to the customs as per the goods inspection status after the destruction, and the applicable supervision mode shall be "domestic sale of imported leftover materials (code 0844)" or "domestic sale of client-supplied leftover materials (code 0845)", which shall be subjected to customs taxation.

5. The customs may onsite supervise the destruction of the processing-trade goods.

6. Upon their declaration to the customs, the processing-trade firms shall submit the Customs Declaration for Destruction of Processing-Trade Goods, the receipts issued by the destroying agencies, the Certificate of the Destruction of the Processing-Trade Goods (see Annex 3) and other relevant declaration forms.

(1) Where the firms earn no income from the destruction, the customs shall conduct verification and cancel based on the destruction declarations.

(2) Where the firms earn certain income from the destruction of the leftover materials and by-products, the customs shall conduct verification and cancel based on the specified list of goods and declaration forms.

(3) Where the firms earn certain income from the destruction of the materials and defective goods that need verifying as materials in handbooks/accounts, the customs shall conduct verification and cancel as materials or converted materials based on the specified list of goods and declaration forms.

7. Where the firms give any untrue declaration for the destruction, the customs shall dispose in accordance with the Customs Law of the P. R. China and the China Customs Regulations on Administrative Penalty.

This Announcement shall enter into force on May 1, 2014 along with simultaneous repeal of GACC Announcement No.56 of 2009.


Annex 1. Customs Declaration for Destruction of Processing-Trade Goods (with Income from Destruction) (omitted)

Annex 2. Customs Declaration for Destruction of Processing-Trade Goods (No Income from Destruction) (omitted)

Annex 3. Certificate of the Destruction of the Processing-Trade Goods (omitted)



The General Administration of Customs of China (GACC)

April 26, 2014