GACC Announcement No.56, 2016 on Processing Trade Regulatory Implementation

[2016-11-02 15:21:34]

In order to ensure processing-trade operation after canceling processing-trade business approval by commerce administrations, regulatory implementation matters are hereby announced in the light of MOFCOM-GACC Announcement No. 45 of 2016:

1. Processing-Trade Manual/Account-Book Setup/Alteration

(1) With regard to the manual setup or alteration, applicants shall submit the following documents instead of “Processing Trade Business Approval”:

“Processing-Trade Business Capacity Certificate” issued by local commerce administrations;

Other documents required as per GACC Decrees No. 219 (on processing-trade cargo control measures) and No. 150 (on processing-trade enterprise control measures)

(2) Applicants shall, as per the Business Capacity Certificate-specified HS codes, declare materials, parts, and finished-products information; the Customs may compare first 4 digits of the HS codes and the information of materials, parts and finished products.

(3) Applicants shall declare manual expiring date as per that of contract, but within one year in principle; upon Customs permission, the expiry may be extended by two years at most.

2. Domestic Sale under Processing Trade

Regarding domestic sale of import-bonded materials and parts, applicants may be free from submitting relevant Domestic Sale Approval.

3. Commodities to be Approved by the Ministry of Commerce (MOFCOM)

The commodities “banned or restricted in processing trade” refer to copper concentrate, raw hide, satellite TV receiving devices, petroleum products, precursor chemicals, etc. Eligible applicants shall obtain approvals for such commodities from MOFCOM before declaration to the Customs.

4. Control within Customs Special Control Areas

Processing-trade enterprises located in Customs special control areas shall apply for processing-trade manual/account setup or alteration by submitting their Business Capacity Certificate issued by the board of the special control areas. The Customs will compare declared information of materials and products as per first 4 digits of the HS codes that are specified in the Business Capacity Certificate.

5. Customs Control during Transitional Period from 1 September 2016 through 31 August 2017

(1) Alteration of established manuals: the processing trade manuals, set up before 1 September 2016, may keep in force till their expiring dates. During the transitional period, where new commodity items are added and relevant HS codes have changes in first 4 digits, the applicants shall submit a new version of Business Capacity Certificate (i.e. the version issued after 1 Sept 2016) or the older version within its validity attached with a commodity list containing first 4 digits of HS codes).

(2) Setup of new manuals: for new manual setup after 1 September 2016, the applicant shall submit new-version Business Capacity Certificate. If the new version cannot be provided, the applicant may, within the transitional period, apply for manual setup by submitting valid old-version Business Capacity Certificate attached with a commodity list (containing first 4 digits of HS codes) issued by commerce administrations.

General Administration of Customs of China (GACC)
September 18, 2016
Source: ETCN