On May 29, 2018, the General Administration of Customs promulgated the Decision of the General Administration of Customs on Amending Some Regulations (Decree No. 240 of the General Administration of Customs), amending the relevant provisions of the Regulations of the People's Republic of China on Customs Processing Trade Goods (hereinafter referred to as the Measures). The amendments are made in conjunction with the revised contents of the decree and the contents of the previous announcements, and the following announcements are reissued:

I. Article 2 of the Measures

The business enterprise shall go through customs formalities such as bonded materials or finished products for domestic sale, carry-over and return within the validity period of the manual.

Article 6 of the Measures

(1) In any of the following circumstances, the mortgage formalities shall not be handled:

1. Mortgage affects the normal production of processed trade goods;

2. Mortgage processing of trade goods or bonded materials used by them involves the administration of import and export licenses;

3. Mortgage processing trade goods belong to incoming processing goods;

4. If the contract is administered as a unit, the term of mortgage exceeds the period of validity of the manual;

5. If the mortgage period is longer than one year, the mortgage period is managed by the enterprise as a unit.

6. Operating enterprises or processing enterprises suspected of smuggling or violation of regulations have been investigated and investigated by the Customs, and the cases have not been concluded;

7. Operating enterprises or processing enterprises are required by the Customs to rectify due to confusion in management, and during the rectification period;

8. Other circumstances in which the Customs considers it unapproved.

(2) When applying for the mortgage formalities for processing trade goods, an operating enterprise shall submit the following materials to the competent customs:

1. Formal written application;

2. Written intentions of bank mortgage loan.

(3) Upon examination and verification, the competent Customs shall allow the operating enterprise to mortgage the processed trade goods to the domestic banks after paying the corresponding margin or guarantee letter from banks or non-bank financial institutions (hereinafter referred to as "margin or guarantee letter"), and keep copies of the mortgage contract and loan contract for the record of the competent Customs.

The margin or bond shall be charged according to the amount of tax payable on all bonded materials used in the finished products for bonded goods of mortgaged processing trade.

3. On Article 9 of the Measures

(1) Separate management means that processed trade goods should be kept separately from non-processed trade goods and accounted for separately. If goods cannot be stored separately, the competent Customs shall verify the internal information management system of the enterprise, confirm that it can separate the data and information flow of processed and non-processed trade goods through the network supervision system, and confirm that it meets the requirements of "separate management". Enterprises should ensure the consistency of bonded goods flow and data information flow.

(2) "Place for Customs Recording" means the place where processing trade enterprises register with Customs and record processing trade business with Customs.

(3) Processing and trading enterprises shall obtain approval from the competent customs authorities for changing or adding storage places. The competent Customs shall require processing trade enterprises to submit a written application indicating the storage address, time limit and other relevant contents, and a copy of the ownership certificate of the storage place. If they belong to a leasing place, they shall also submit a leasing contract.

Processing trade goods shall not be deposited across directly under the jurisdiction of the Customs except for business needs such as processing.

Article 21 of the Measures

(1) If an enterprise fails to declare the receipt and dispatch of goods and customs declarations in accordance with the relevant provisions when conducting deep processing carry-over business, the Customs shall no longer accept the new Declaration Form for Deep Processing Carry-over before completing the relevant formalities, and may suspend the use of the Declaration Form for Deep Processing Carry-over in accordance with the actual situation.

(2) The enterprise shall revoke or amend the deep processing carry-over declaration in accordance with the relevant provisions; the released deep processing carry-over declaration cannot be amended, but can only be revoked.

(3) If a transferred or transferred enterprise violates the relevant provisions, the Customs shall deal with it in accordance with the Customs Law of the People's Republic of China and the Regulations of the People's Republic of China on the Implementation of Customs Administrative Penalties; if the case constitutes a crime, it shall be investigated for criminal responsibility according to law.

Article 22 of the Measures

(1) An enterprise shall file with the Customs the basic information of the processing of the goods for outward delivery within three working days from the date of the first outward shipment; it shall declare to the Customs within 10 days from the date of the outward shipment of the goods the actual situation of the receipt and delivery of the goods, and the same hand (account) book and the same contractor can be combined to handle the situation of the receipt and delivery of the goods.

Where the enterprise's outward processing and filing information changes, the relevant information shall be changed to the Customs.

(2) In the case of contract-based unit management, the first outsourcing refers to the outsourcing of processing business to the same contractor for the first time under this manual; in the case of enterprise-based unit management, the first outsourcing refers to the first outsourcing of processing business to the same contractor within the current write-off cycle.

(3) Where the whole process is outsourced, the enterprise shall pay a deposit or letter of guarantee equivalent to the amount of tax payable on the outgoing processed goods at the time of filing for the outgoing processed goods. When an enterprise changes its outward processing information, if the amount of outward processing margin payable by the enterprise increases, the enterprise shall make up the margin or guarantee letter.

(4) If an enterprise fails to go through the export processing formalities to the Customs as required, or if the actual export situation is inconsistent with the declaration situation, it shall be punished in accordance with the relevant provisions of the Regulations of the People's Republic of China on the Implementation of Customs Administrative Penalties.

Article 25 of the Measures

Enterprise Application for Internal Material String

    Customs head office

    13 August 2018