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China Customs Q&A: Disposal of Bonded Goods

[2009-04-01]

During the production of imported bonded goods, mass of waste material will also appear. These materials not only occupied warehouse spaces, but also affect the general environment of factories.

Q: Can these waste materials be disposed without application?
A: No matter you are the owner or the user, as long as the material is imported bonded goods, apart from processing exporting product, any disposal of these materials should subject to the approval of the Customs.

Q: What are included in bonded goods?
A: Bonded goods not only include the goods themselves, but also all types of ramifications. Apart from the above mentioned waste materials, it also includes half-finished products, byproducts, second-rate products, remainder materials and goods damaged by disasters.

Q: What are the proper ways of disposal for bonded goods?
A: Firstly, export again. No matter the goods are finished products or any other type of byproducts, if they are exported from legal channel, you can dispose them at will.

Secondly, sell domestically by tariff repay. It is permitted to sell bonded goods domestically; no matter the goods are original materials or byproducts. Applications for disposal must be submitted to the Customs first, and upon being approved by the Customs and repay the required tariff, the goods can be legally sold domestically. If the goods subject to the special license administration, and relevant approval must be got before applying for tariff repay.

Thirdly, enter internal recycling. (For example, plastic tailings.) It also should be noted that the recycling should be reported to the Customs first and the products should be filed in the Customs.
Fourthly, Destroy. Upon the destruction application of the company, the Customs would require the company to transport the goods to the appointed place. If the goods are to be destroyed, destruction record has to be made according to relevant regulations of the Customs for inspection.

Q: Under what situations, the company can dispose bonded goods?
A: After submission of destruction application, the company can dispose the part that is confirmed by the Customs to be of no commercial worth.
Source: ETCN
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