Cancel the approval of Canadian trade business and establish and improve the supervision mechanism during and after the process

[Issuing unit] General Administration of Customs, Ministry of Commerce

【Issue No.】2016 No. 45

【Release date】2016-8-25

【Implementation Date】2016-9-1

According to the requirements and The State Council’s overall plan for the reform of administrative approval is to cancel the approval of processing trade business nationwide and establish and improve an ongoing and ex-post supervision mechanism. The relevant matters are hereby announced as follows:

1. Cancel the approval of processing trade contracts by the commerce authorities and the approval of bonded imported materials or finished products for domestic sales in processing trade. Competent commerce departments at all levels will no longer issue the “Processing Trade Business Approval Certificate”, the “Processing Trade Business Approval Certificate for Network Supervised Enterprises”, the “Processing Trade Bonded Imported Materials Domestic Sales Approval Certificate”, and the “Processing Trade Unpriced Equipment Approval Certificate”. The Customs Special Supervision Area Management Committee will no longer issue the “Export Processing Zone Processing Trade Business Approval Certificate” and the “Export Processing Zone Deep Processing Carryover Business Approval Certificate.”

2. Enterprises that carry out processing trade business shall go to the customs with a valid “Certificate of Business Status and Production Capacity of Processing Trade Enterprises” issued by the competent commerce department or the Customs Special Supervision Area Management Committee (see the attachment for the printed form). For the procedures for establishing (changing) the processing trade manual (account), the customs will no longer verify the relevant license documents, and will proceed according to the tax item range listed in the “Certificate of Business Status and Production Capacity of Processing Trade Enterprises” (i.e., the first 4 digits of the commodity code) Manual Setup (Change). For commodities that are prohibited or restricted from processing trade, enterprises should go to the customs to handle relevant business after obtaining approval documents from the Ministry of Commerce.

3. If bonded imported materials or finished products for processing trade outside the special customs supervision area need to be sold domestically, the customs will collect taxes and deferred tax interest in accordance with the law. If the imported materials involve license management, the enterprise shall also submit relevant licenses to the customs.

When going through the domestic sales procedures for agricultural products with tariff quotas under processing trade, the customs shall verify the original tariff quota certificate for the trade mode of “general trade” or the original preferential tariff rate quota certificate for additional tariff quotas (hereinafter referred to as the “general trade quota certificate”) , taxes and tax deferral interest are calculated according to the tariff quota rate or the temporary preferential tariff rate outside the tariff quota. If there is no general trade quota certificate, tax and tax deferred interest will be calculated at the extra-tariff quota rate.

4. Strictly inspect the operating status and production capacity of processing trade enterprises. Competent commerce departments at all levels and administrative committees of special customs supervision areas must strictly implement the verification system for the operating status and production capacity of processing trade enterprises and issue “Certificate of Operational Status and Production Capacity of Processing Trade Enterprises” to enterprises.

5. Commercial authorities at all levels and customs should strengthen connection and close cooperation, formulate processing trade management operating procedures or service guidelines, standardize services, facilitate enterprises, and create a good environment for the development of processing trade.

6. This announcement will be effective from September 1, 2016.

Attachment: Printing form of “Proof of Business Status and Production Capacity of Processing Trade Enterprises”

Ministry of Commerce and General Administration of Customs

August 25, 2016

AAA

Disclaimer:

Disclaimer: Some of the texts, pictures, audios, and videos of some articles published on this site are from the Internet and do not represent the views of this site. The copyrights belong to the original authors. If you find that the information reproduced on this website infringes upon your rights and interests, please contact us and we will change or delete it as soon as possible.