GACC Announcement No.29, 2017 on Enterprise Processing-Trade Control Mode Reform

In order to improve Customs control and service for processing trade, the GACC has decided to select some enterprises with electronic account book to conduct the pilot “enterprise-specific processing-trade control mode” (hereinafter as the “new control mode”).

Relevant matters as follow:

Ⅰ Pilot Customs and Business:

(1) Pilot Customs Districts: Tianjin, Shenyang, Nanjing, Hangzhou, Wuhan, Gongbei, Huangpu, Chongqing, Chengdu;

(2) The new control mode refers to Customs control over processing trade that is specific to individual enterprises in the light of their processing-trade account books, based on Customs commodity codes (material number or item number) corresponding to enterprises’ material codes, including turnover control and regular write-off.

(3) The pilot business includes account setup (alteration), export/import, outward processing, deep processing transit, domestic sale, residual materials transit, verification and write-off.

Ⅱ. Main Contents

(1) Account setup: a processing trade enterprise may choose to set up its account with material number or with item number; the maximal import quantity in the account should be the capacity provided in the “processing trade enterprise capacity certificate”, i.e. import materials-corresponding value.

(2) Write-off cycle: a processing trade enterprise may self-choose reasonable write-off cycle and unit-consumption declaration time.

(3) Outward processing: a processing trade enterprise may no longer submit cargo dispatch/receipt list, but should keep relevant data on record for verification.

(4) Domestic sale: a processing trade enterprise should, no later than the 15th day each month, finish paying duties/fees on bonded cargos for domestic sale that occur in the preceding month, without span between years.

(5) Deep processing transit: a processing trade enterprise should, no later than the 15th day each month, finish declaring the deep processing transit that occur in the preceding month; may no longer submit cargo dispatch/receipt list, but should keep relevant data on record for verification.

(6) Residual materials transit: a processing trade enterprise should, before declaration, transfer actual stock residuals into new account.

Within write-off cycle, a processing trade enterprise may self-declare to the Customs for write-off; regarding more-than-one-year cycle, the enterprise should make annual declaration.

(1) Self-Declaration: the enterprise may use the unit consumption list, work orders and other bonded materials accounting methods to declare current accounting results to the Customs for verification procedures.

(2) Annual Declaration: For the write-off cycle more than one year, the enterprise should, at least once a year, report the amount of bonded materials consumption. The cumulative amount of annual declared data is used as the total consumption amount of bonded materials for this write-off cycle.

Before the end of current write-off cycle, where the enterprise make supplementary declarations arising from emergencies and internal self-check, the Customs will make concentrated disposal of all declarations concerned.

The enterprise should, according to the material number or item number in its account, declare its export and import under the control of processing with imported materials or foreign-supplied materials.

The enterprise should submit and save relevant electronic data and paper documents.

The pilot enterprises must be manufacturing enterprises with processing trade business in their own names and must meet one of the following conditions:

(1) Customs credit rating is general certification and above;

(2) Customs credit rating is general creditable business, with processing-trade cargo flow and data flow transparent and clear, logical chain integral, consumption traceable, so as to meet Customs requirements.

Regarding the enterprises under one of the following circumstances, the Customs will no longer control them in the new mode:

(1). Rating is reduced to dishonest business;

(2). Internal information system is not complete, with processing-trade cargo flow and data flow not complete and consumption management below Customs requirements;

(3). Incompliant with customs formalities, failing to timely submit and save relevant data, documents and information;

(4). Initiative to apply for exclusion from the new control mode;

(5). Others free from the new control mode.

Where the Customs decides not to give the new control mode, the enterprises should, within 30 days upon the decision, go through the account write-off with the Customs.

Ⅲ. Miscellaneous Matters

(1) Upon the formal implementation of this Announcement, for the processing-trade manual which has not yet been completed, the enterprise may transfer un-exported processing-trade goods into new account book.

(2) Regarding those indefinite issues, general processing-trade regulations shall prevail.

The contents of this Announcement shall enter into force on 1 August 2017.







General Administration of Customs of China (GACC)
July 13, 2017