No.14 Announcement of General Administration of Customs in 2009

In accordance with the Regulation of the People’s Republic of China on Import and Export Duties and the No.13 Announcement of the General Administration in 2009, the relevant issues about the collection and refund the interest on tax delayed payment on bonded goods in processing trade are formulated as follows.

(1) For the bonded goods in processing trade wholly exported in the valid time limit, the customs shall notify Bank of China to refund all the cash deposit and interest of current deposit.

(2) To the bonded materials and finished product in processing trade for domestic sales, the customs shall levy interest of delayed payment except the former stipulated tax according to the law. The detailed measures of collecting interest on delayed payment are stated as follows:

I The rate of interest on delayed payment shall be implemented according to the interest on current deposit of 0.36 percent at present released by People’s Bank of China. The customs will make an adjustment in conformity with the interest rate of current deposit released by People’s Bank of China.

II Application scope of interest rate

The customs will levy the interest on delayed payment according to the rate filed in the letter of payment of duty.

III The collection and calculation formula on interest of delayed payment

The interest on delayed payment in processing trade shall be levied by the day according to the latest interest rate of delayed payment revised by General Administration of Customs when filing customs letter of payment of duty. The calculation formula of interest on delayed payment is stated as follows:

Interest rate of delayed payment = tax amount ×time limit of collecting interest ×interest rate of delayed payment／360