CHINA INDUSTRIAL DIGEST
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BONDED AREA INTRODUCTION
China has various types of bonded areas that offer favourable incentives
on import business at the state, province, city and district level.
In the attached article, you will realise the unique functions of different
kinds of bonded areas.
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BONDED AREA INTRODUCTION
TIANJIN Tianjin Dongjiang Free Trade Port
DALIAN Dalian Dayaowan Free Trade Port
SHANGHAI Shanghai Yangshan Deep Water Port
NINGBO Ningbo Meishan Free Trade Port
XIAMEN Xiamen Haicang Free Trade Port
QINGZHOU Qingzhou Free Trade Port
HAINAN Hainan Yangpu Free Trade Port
CHINA INDUSTRIAL DIGEST
Free Trade Zone (FTZ)
Free-trade zones (FTZs) are specialized areas
for international trade, foreign investment,
bonded warehouses, and export processing.
They are the new junctures welding China's
economy with the world's economy.
Bonded Logistics Park (BLP)
China has several types of bonded areas which After the entrance of the logistics market, the
offer more favourable import conditions at the advantages in bonded function and import &
state, provincial, city, and district levels. Both export business of FTZs are reducing. To
foreign and Chinese companies may set up in all enhance and integrate the advantage of FTZ
types of zones shown as follows: functions and port location, the Central
Free-trade zones (FTZs); Government approved a new functional
area—bonded logistic parks - which suggests
Export-processing zones (EPZs); that the FTZ is turning into the free trade port
Bonded logistics parks (BLPs); area.
Free trade port areas (FTPAs); Free Trade Port Area (FTPA)
The Free Trade Port Areas (FTPAs), which are
Export Processing Zone (EPZ) subject to Customs regulations, enjoy current
The establishment of EPZs was one of the major policy preference for free trade zones, export
steps taken by China to expand its involvement in processing zones and bonded logistics parks as
the international market and further open its a whole and mainly deal with international
market to the outside world. It is most helpful in trade, distribution and purchase, transit trade,
the promotion of export, improvement in the and export processing businesses, as well as
management of processing trade, utilization of expanded related functions. Currently, there
foreign capital in a more active, practical, and are six FTPAs in China. They are Shanghai
effective way, and development of the local Yangshan Port, Dalian Dayaowan Port,
economy. Export-processing zones (EPZs) are Tianjing Dongjiang Port, Hainan Yangpu Port,
special enclosed areas supervised by the General Ningbo Meishan Port and Guangxi Qinzhou
Administration of Customs. Port, among which, only Yangshan FTPA is in
CHINA INDUSTRIAL DIGEST
No Need of Verification of Collection and
Payment of Foreign Exchange
Foreign exchange revenue and expenditure
under the account of inbound and outbound
trade between the enterprises in the area and
their counterparts overseas can be delivered via
banks upon relevant documents without having
to file with the foreign exchange administration
Bonded Area for verification of collection and payment of
Upon entry of imported goods into this area, foreign exchange; the enterprises outside of the
they can be classified as bonded goods which area need to file with the foreign exchange
can be stored in the area indefinitely. administration for verification of collection and
payment of foreign exchange generated by the
Tariff & VAT Free flow of goods in and out of the area.
Imports of equipment used in the area are free Enterprises in the area shall go through the
of tariffs & VAT procedures of declaration of international
revenue and expenditure statistics when they
Tax free transactions by enterprises engage in any foreign transaction.
Product transactions between enterprises in
the area are exempted from value-added tax Easing Purchase of Foreign Exchange
and consumption tax The enterprises in the area that are registered
with capital in RMB are allowed to purchase
Tax Refund foreign exchange equivalent to less than actual
Flow of domestic goods into the area are contributed capital in RMB; the goods
treated equally as exports and may enjoy tax distribution enterprises in the area are allowed
rebates as per relevant regulations on export to purchase foreign exchange equivalent to less
rebates as well as the construction materials than the amount of import of goods in the
tax. current year; the processing enterprises in the
area are allowed to purchase foreign exchange
Domestic goods equivalent to less than the amount of approved
Domestic goods into the area are treated domestic sale of their products. Enterprises out
equally as exports and can enjoy tax rebates as of the area are allowed to purchase foreign
per relevant regulations on export rebates. exchange to pay overseas enterprises upon
related documents in terms of inconsistency
Tariff and import linkage tax are levied on between goods flow and cash flow.
domestically-sold products produced by
processing enterprises in the area in
proportion of foreign-produced materials to
all materials used in a unit product.
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Bonded Export Processing
Purchase of materials both domestically and
overseas, provision of value-added processing,
and import or export from the free port.
Import Distribution Centre
Packing & repacking of domestically imported
goods, simple value-added processing, then
import to domestic.
Asia Distribution Centre International Repairing Centre
Storage for overseas goods for future Equipment, both domestic and overseas, will
distribution to countries outside China. be repaired in the Free Port, then sent back to
the original countries.
Operations include container loading and Domestic Goods Re-Import
unloading, piling, international transit, and Exported goods are re-imported domestically
deconsolidation and consolidation, import and with little or no value add.
export goods transit, and container multimodal
Multi-Countries Purchase Centre
Storage and management of domestic and
exported goods for future integration and
value-adding, before exporting.
Operations such as cargo transit, commodity
transaction, bonded commodity exhibition and
corresponding technical services.
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Free Trade Zone Bonded Logistics Park Export Processing Free Trade Port Area
• International Trade, • International • Only Export Processing • All
• Bonded Warehouse, Trans-shipping,
• Export Processing by • International distributing,
order • International purchasing,
• International Entrepot
• No Port • BLP direct connection • No Port • Within Port
Bonded Warehouse • Yes • Yes • Public warehouse only • Yes
Workshop • Yes • No • Yes • Yes
• Imports of equipment • Not applicable • Imports of equipment • Imports of equipment used in
Tariff used in the area are free used in the area are free the area are free of tariff
of tariff of tariff
• Through an intermediate • No • No more than 30% of • No
Sell Products to vendor with trading rights total finishing products
domestic market can be sold to the
• Exempted from • Not allow • Exempted from • Exempted from value-added
Transaction inside area value-added tax and value-added tax and tax and consumption tax
consumption tax consumption tax
Tax • No • No • No • No
VAT Refund • Refund after export • Refund upon entering • Refund regularly • Refund every 2 weeks
• Total enclosure, 8 • Total enclosure, 24 • Total enclosure, 24 • Total enclosure, 24 working
working hours working hours working hours hours
Custom Inspection •2 •2 •2 •1
• Customs clearance after • Priority to Customs • Priority to Customs • Priority to Customs clearance
• C/C to Customs • C/C to Customs • C/C to Customs • Free Move after C/C to
CHINA INDUSTRIAL DIGEST
VMI (Vendor Managed Inventory) decision on criteria of inventory and strategy for
The vendor delivers materials to designated location continuing goods supplemented by negotiated
for management by a third party logistics company delivery of payment after the use of the goods.
(3PL). However, ownership of the materials still
belongs to the vendor. The manufacturer, together The core idea is JIT (Just in Time), that is, delivery of
with the vendor, makes goods upon demand and no inventory without
Customs Other Bonded
Bonded Warehouse Monitoring Aera
Truckers Bonded Aera
Import and Distribution Pattern
Customers purchase goods to be entered into the First delivery upon guarantee (guarantee funds and
area in a centred basis, and then distribute them letter of guarantee) before centralized customs
when necessary. declaration.
Bonded Warehouse Overseas
Manufactory No. 1
No. 1 ：：：
Local Assembling Warehouse
Manufactory No. 34
CHINA INDUSTRIAL DIGEST
Global Purchasing Centre
Enterprises purchase the products from both The ownership of the products belongs to the
overseas and local vendors and deliver the products enterprises that purchased the products when
to a 3PL’s warehouses in FTPA. The 3PL will deliver the products are delivered to the 3PL’s
the products to different overseas or local warehouses in FTPA. The ownership of the
manufactories according to the production plan. products transfers to the manufactory when the
(Please refer to the picture below for details) products leave the FTPA.
CHINA INDUSTRIAL DIGEST
Regulations affecting development zones and cities
Provisional Rules on Customs Bonded Port Areas in China
Promulgated by the General Administration of Customs on September 3rd 2007 and effective from October 3rd
Translation: China Economic News
CHAPTER I General Provisions
Article 1 Article 6
This set of rules is formulated in accordance with the Administration departments of bonded port areas shall
Customs Law of the People’s Republic of China establish an information-sharing public computer
(hereinafter referred to as the “Customs Law”) and information platform, and realize exchange of electronic
other laws and administration regulations. statistics between enterprises and the customs inside
the areas through e-customs.
Bonded port area mentioned in this set of rules refers Article 7
to special areas under customs supervision and Infrastructure facilities, monitoring and supervision
monitoring with functions such as port, logistics and facilities and the grounds of a bonded port area shall be
processing set up in the state open port areas and built in keeping with the Inspection Standards on
specific areas linking with the port areas with approval Infrastructure and Supervision and Monitoring facilities
from the State Council. in Areas under Special Customs Supervision. After
passing the inspection jointly conducted by GAC and
Article 3 relevant departments of the State Council, the bonded
The customs conduct supervision over means of port area is allowed to start business.
transport, cargo, goods entering and leaving the bonded
port area, and enterprises and grounds inside the area. Article 8
A bonded port area is allowed to conduct the following
A bonded port area implements closed management.
Customs pass, fences, video monitoring and control
1. Storage of import and export goods, and cargos
system and other facilities needed by customs shall be
which have not gone through customs procedures;
set up between the bonded port area and other areas
of the People’s Republic of China (hereinafter referred
2. Foreign trade, including entrepot trade;
as “other areas”) in accordance with the requirements
of the customs supervision stations.
3. International procurement, sales and distribution;
4. International transshipment;
No residence is permitted inside the bonded port area.
Apart from non-profit-making facilities for guaranteeing
5. Inspection, testing, after-sales service, and
the normal work and life of people in the bonded port
maintenance and repair;
area, the area is not allowed to construct commercial
facilities for people’s living and consumption nor
6. Commodity show;
conduct commercial retail business.
7. Research and development, processing and
Office places of customs and other administrative
organs shall be built in designated areas of bonded port
areas, and comprehensive office areas outside.
8. Port operation;
9. Others approved by the customs.
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Article 9 financial management in accordance with the
Enterprises inside the bonded port area shall have Accounting Law of China, other laws and administrative
qualified legal person status with the capability to pay regulations, open account books and sheets and put on
taxes to the customs and other legal obligations. Under record the enterprise financial performance, cargos into
special circumstances, corporate enterprises outside the and out of the bonded port area, storage, transfer, shift,
area can set up branches inside the bonded port area as sales, processing and use of goods in keeping with the
approved by the competent customs department of the customs supervision requirements. The enterprises shall
bonded port area, and they shall report to the customs truthfully fill in relevant documents, and account books,
for putting on record. and make accounts and accounting with legal and
The customs adopt an on-line control system and Article 12
customs examination system for enterprises inside the Operation and other activities of port and shipping
bonded port area. enterprises inside a bonded port area shall be in
keeping with relevant laws, administrative regulations
Enterprises inside the bonded port area shall use a and customs supervision regulations.
computer management system which conforms to the
customs requirements, and provide terminal equipment
and applied computer software access to the customs
Cargo and articles banned by the state in import and
for the convenience of data examination. They shall
export shall not enter the bonded port area.
connect their computer system with that of the
customs according to the accepted way and statistics
standards provided by the customs, and ensure Article 14
truthfulness and actuality and effectiveness of the data. Production and operation activities of enterprises inside
a bonded port area shall meet the requirements of
The customs conduct examination over enterprises industrial development of China, and are not permitted
inside the bonded port area, and enterprises inside the to conduct processing trade business of high energy
area shall standardise their management, abide by laws consumption and pollution making products and
and regulations, and be self disciplined. resource-based products, and commodities listed in the
Catalogue of Commodities Banned for Processing
Article 11 Trade.
Enterprises inside a bonded port area shall standardise
CHAPTER II Supervision over cargo between bonded port area and other countries
Article 15 Article 17
Cargo going between a bonded port area and another With the exception of those covered by other laws and
area shall go through the customs procedures of the administrative regulations, the following goods entering
bonded port area; and cargo not under the jurisdiction or leaving the bonded port area from other countries
of the bonded zone customs for import and export are exempted of import duties and import linkage tax
shall conduct the customs procedures at the port collected by the customs as agent.
customs with approval of the competent department of
the bonded port area. 1. Machinery and equipment needed by
production-type infrastructure facilities construction
Article 16 projects inside the bonded port area, and capital
Cargo going between a bonded port area and another construction materials needed for the construction of
area shall be put under the management for putting on workshops and storage facilities;
record, giving bonded treatment to goods entering the
bonded port area from outside the country with the 2. Machinery, equipment moulds and parts for
exception to circumstances mentioned in Article 17, 18 maintenance and repair needed for production of
and 39. enterprises inside the bonded port area;
In accordance with the putting on record system 3. Office articles of a reasonable quantity for self-use of
management mentioned in the previous articles, cargo enterprises and administrative organs inside the bonded
receivers and suppliers or agents shall fill in list port area.
documents truthfully on entry and exit goods for
putting on record in the customs.
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Article 18 Article 20
Imported transport tools and daily-use consumer goods Cargo into and out of a bonded port area to and from
entering the bonded port area for self use by other countries are not covered by import and export
enterprises and administrative organs shall go through quota and license management, except those covered
customs procedures as imported goods in accordance by other laws and administrative regulations.
with relevant regulations, and the customs levy import
duties and import linkage tax in accordance with For cargo under the same quota and license item, the
relevant regulations. customs shall not require enterprises to present original
copies of quota and license documents in cases where
Article 19 the customs have already examined and verified the
Products shipped from the bonded port area to other quota and license when the cargo entered the area.
countries are exempted of export duties, except those
covered by other laws and administrative regulations.
CHAPTER III Supervision over goods shipping between bonded port areas and outside
Article 21 outside the areas with their written application
For goods shipping between a bonded port area and approved by the customs, and the customs shall collect
outside the area, enterprises inside the bonded port taxes according to their actual status. Commodities
area and receivers and suppliers outside the area shall under import quota and license management do not
apply for customs procedures to the customs of the need to get an import quota and license; and
bonded port area in accordance with relevant commodities belonging to waste materials and other
regulations on the import and export goods. For goods dangerous wastes listed in the Catalogue of Banned
required to pay duties, enterprises inside the bonded Waste Materials for Import need to be disposed of
port area and receivers and suppliers outside the area outside the bonded area. Enterprises concerned shall go
shall pay the tax according to actual status of the goods; through customs procedures for shipping out of the
for goods under the quota and license management, bonded area with approved documents provided by
enterprises inside the bonded port area and receivers administrative organ of the bonded port area and the
and suppliers outside the area shall present quota and local city-level environmental protection department.
license documents to the customs. For cargo under the
same quota and license item, the customs shall not In cases where defective products and sideline products
require enterprises to present original copies of quota which emerged in the process of processing and
and license documents if the customs have already production of enterprises inside the bonded port area
examined and verified the quota and license when the are to be shipped out of the areas for domestic sales,
cargo entered the area. the customs shall levy taxes on the products according
to their actual status. For products under import quota
Enterprises inside the bonded port area which conduct and license management, enterprises shall present
foreign trade and in cases where the goods are actually import quota and license documents to the customs.
not going into or out of the area can go through the
customs procedures at the place of the goods receiver Article 24
and supplier or the actual entry and exit port of the Goods included in a favourable trade agreement which
goods. are to be shipped outside bonded port areas and are in
keeping with the administration regulations on place of
Article 22 origin can apply for enjoying conventional tax rate or
For cargo under supervision of the customs being preferential tax rate.
shipped into and out the bonded port area, the
competent customs of the bonded port area shall Article 25
require them to provide relevant guarantee. Approved by the customs, enterprises inside the
bonded port area can conduct concentrated application
procedures. Enterprises inside the area conducting
Article 23 concentrated application shall make an aggregate total
For leftover bits and pieces, waste materials made in the of applied materials and figures in one natural month, fill
process of processing and production of enterprises in customs declaration forms on import and export
inside the bonded port area, and packaging materials goods, and then conduct the concentrated application
made in the process of processing, production, storage to the customs by the end of the next month.
and transport, enterprises inside the area can ship them
CHINA INDUSTRIAL DIGEST
The concentrated application is applicable to the tax port areas, enterprises in the areas may organise
rate and exchange rate on the date of conducting the commodity display activities at special exhibition places
concentrated application. Concentrated application is of the comprehensive office areas in the bonded port
not allowed to be carried over to the next year. areas. The exhibits shall be put on record with the
Customs in charge, and be under the supervision of the
Article 26 Customs.
For shipment of goods into bonded port areas from
outside and the procedures for paying taxes shall be When enterprises in the bonded port areas organise
conducted according to relevant regulations on commodity show activities in places other than in the
exportation of goods, and the certification page of the bonded port areas, they should go through related
declaration form of exported goods used for export tax procedures in light of the administrative provisions of
refund shall be issued according to the following the Customs on temporary import of goods.
1. For domestically manufactured goods and packaging The machines, equipment, moulds and office supplies
materials thereof transported into the bonded port that are under the supervision of the Customs and are
areas from outside for enterprises in the areas to carry used in bonded port areas can, in accordance with
out business, the Customs shall handle it according to relevant regulations on fixing goods within the territory
the relevant provisions on exported goods, and issue of China, be transported out of the areas for testing and
the certification page of the declaration form of maintenance. When enterprises in the areas transport
exported goods. If the goods are exported in transit, their moulds outside the areas for testing and
the Customs in the place of consignment shall issue the maintenance, they should keep the samples or pictures
certification page of the declaration form of exported of the products.
goods after receiving the electronic return receipt of the
Customs in charge in the bonded port areas so as to Machines, equipment, moulds and office supplies that
confirm that the goods in transit have been transported are transported out of the areas for testing and
into the areas; maintenance may not be kept in the outside areas for
processing, production and use, and shall be
2. For the domestically manufactured materials for transported back to the bonded port areas within 60
capital construction, machines, loading and unloading days from the day when they are transported out. If
equipment, management facilities, and office articles, etc. they cannot be transported back as required due to
that are transported into the bonded port areas from special circumstances, enterprises concerned or the
outside for use by the administrative organs and administrative organs of the bonded port areas should
enterprises in the areas, the Customs shall handle them apply in written form for extension of the time limit
according to the relevant provisions on exported goods, with Customs in charge within 7 days before the term
and issue the certification page of the declaration form expires, and the term extended may not exceed 30
for export goods; days.
3. For the living consumption goods, office supplies, and Machines, equipment, moulds and office supplies that
means of transport that are transported into the are transported back to the bonded port areas after
bonded port areas from outside for use by completion of testing and maintenance should be the
administrative organs and enterprises in the areas, the originals. If any parts and components or accessories are
Customs shall not issue the certification page of the replaced, the original parts and components or
declaration form for exported goods; accessories should be transported back to the bonded
port areas along with them. For domestically
4. For the originally imported goods, packaging materials, manufactured parts and components or accessories
equipment, and capital construction materials that are replaced outside the areas, if it is necessary to refund
transported into the bonded port areas from outside, tax, enterprises in or outside the areas may file an
enterprises outside the areas are required to present application in this regard, and the Customs in charge will
the lists of the foresaid goods or articles to the Customs, handle it according to relevant provisions on exported
and go through declaration formalities according to goods, and issue the certification page of the declaration
relevant provisions on exported goods, and the form for exported goods.
Customs shall not issue the certification page of the
declaration form for exported goods, and the tariff Article 29
duties, and tax on imported goods collected by Enterprise in the bonded port areas that need to
Customs in the link of import cannot be refunded. transport their moulds, raw materials and semi-finished
products out for processing should, before starting the
Article 27 outward processing, go through outward processing
Upon approval of the Customs in charge in the bonded procedures at Customs in charge with the processing
CHINA INDUSTRIAL DIGEST
contracts/agreements, the copies of the business license The leftover materials, wastrels, defective products and
of the undertaking enterprise, and materials concerning byproducts generated in the processing carried out
the production capacity situation of the undertaking outside the areas do not need to be transported back
enterprises confirmed by the seal of the enterprise in to the bonded port areas, and the Customs shall levy
the bonded port areas. taxes according to the actual conditions. Enterprises in
the bonded port areas are required to go through the
The term for entrusted processing cannot exceed 6 procedures of clearance and cancellation after
months, and the processed goods should be verification with Customs with their processing
transported back to the bonded port areas on schedule. applications and related documents.
Chapter IV Supervision over Goods within the Bonded Port Areas
Article 30 Article 34
Goods in the bonded port areas may be circulated For goods enterprises inside the bonded port areas
freely. When enterprises transfer the goods or they are have applied to be discarded, after being examined and
conveyed within the areas, the two parties concerned approved by the Customs and competent department,
should, without delay submit e-data on the name of the will be sold off by the Customs in charge according to
goods, quantity, and volume to the Customs. law, and the income from the sale will be disposed of by
the Customs in light of the related provisions.
Article 31 Exception is given to goods whose discard is forbidden
Enterprises in the bonded port areas do not practice a by laws, administrative rules and Customs General
bank deposit account and contract cancellation system Administration.
for processing trade, and the Customs do not exert unit
energy consumption standard management over goods Article 35
for processing trade in the bonded port areas. From the In cases where the goods in the bonded port areas are
day of starting business, enterprises in the bonded port damaged, destroyed or lost due to force majeure,
areas should regularly report the situation of the goods related enterprises in the bonded port areas should
into and out of the areas and in storage to Customs in immediately report in written form to the Customs in
charge. charge in the bonded port areas, to explain the reasons
for it and provide relevant proof provided by the
Article 32 disaster appraisal departments. After the said proof is
Enterprise that apply to engage in maintenance business verified and confirmed by the Customs in charge, the
in the bonded port areas should have the qualification goods will be handled according to the following
of a legal entity, and should be registered for file with applicable stipulations:
Customs in charge in the bonded port areas. The
products under the maintenance of enterprises in the 1. If the goods are destroyed or lost or are not lost or
park are strictly restricted to be only those seeking destroyed but have completely lost their usage value ,
after-sales services and maintenance after being the Customs will go through verification and
exported by China; the replaced components and parts, cancellation and tax exemption procedures for them.
as well as the materials produced during the process of
maintenance should be shipped out of China. 2. If the entry goods are destroyed and have partly lost
their usage value, enterprises concerned in the bonded
Article 33 port areas may go through procedures with the
When enterprises in the bonded port areas need to Customs in charge for direct return shipment. If the
produce, operate and transport dangerous chemicals goods are not to be returned out of China and are
and flammables and explosives, they should obtain required to be transported out of the bonded port
administrative permits from related departments of areas, enterprises concerned may file an application, and
safety supervision, and communication, and report to after being confirmed by the Customs in charge, taxes
the Customs in charge in the bonded port area for the will be collected according to the prices verified by the
Facilities such as storage tanks, devices, and equipment 3. If the goods that are transported into the bonded
must meet the supervision requirements of Customs. port areas from outside are destroyed and have partly
Goods that are transported into and out of the bonded lost their value of use, and there is the necessity to
port areas through pipelines shall be equipped with replace them or return them to the export enterprises,
measuring and testing devices, and other facilities and they may be replaced by identical or similar goods, and
equipment for the convenience of Customs supervision. enterprises concerned are required to go through
return shipment procedures with Customs in charge.
CHINA INDUSTRIAL DIGEST
If the goods need to be returned to the outside, and Article 37
the export tax refund procedures are not yet gone No storage term will be imposed on goods stored in
through, enterprises concerned may go through return the bonded port areas. When the term exceeds two
shipment procedures with Customs in charge; if the years, however, the enterprises concerned are required
export tax refund procedures have been completed, to report to the Customs for the record every year.
stipulations of Item Two of Clause One of this article When sustained storage will influence the public
apply. security, environmental hygiene or human health in the
bonded port areas due to the goods’ nature and actual
Article 36 condition factors, the Customs should order enterprises
In cases where goods are damaged, destroyed, or lost concerned to go through related Customs procedures
due to inappropriate storage and factors other than and ship the goods out of the bonded port areas.
force majeure, enterprises concerned in the bonded
port areas should, without delay, report in written form Article 38
to the Customs, and explain the situation. After being The Customs exerts bonded supervision over goods
verified and confirmed by the Customs in charge, the that are shipped between the bonded port area and
goods will be handled according to the following other special Customs supervision and the bonded
applicable provisions: supervision areas, and will not issue them the
certification page of the declaration form for export
1. For goods that are transported into the bonded port goods for the use of export tax refund. When goods
areas from foreign countries, the enterprises in the are shipped from the Customs supervision and the
areas should, according to the provisions on goods bonded supervision areas where the export tax refund
imported under general trade and the duty-paid value system does not work to the bonded port areas, it will
assessed by the Customs before the goods are be regarded as export of goods in reality, and the
destroyed or lost, pay tariffs and the taxes collected by Customs in the place of consignment will issue the
Customs in the link of import at the tariff rate and certification page of the declaration form for export
exchange rate applicable on the day when the goods goods for the use of export tax refund.
are damaged or lost; Goods flowing between the bonded port areas and the
Customs supervision and the bonded supervision areas
2. For goods that are transported into the bonded port will be exempted from the taxes in the link of import
areas from outside, the enterprises in the areas should and export.
again pay taxes in the domestic link that have been
refunded due to export, and the Customs will based on Means of transportation that are used to transport
the tax payment certificates handle the verification and goods between bonded port areas and Customs
cancellation procedures. Export tax that has already supervision and the bonded supervision areas should
been paid cannot be refunded. meet the supervision requirement of the Customs.
CHAPTER V Supervision over Goods that are Imported and Exported directly and over
the Means of Transportation and the Goods and Articles Carried by Individuals Entering
and Exiting the Bonded Port Areas
Article 39 Article 40
For the goods that are directly imported and exported Means of transportation and individuals that enter or
through bonded port areas, the Customs will conduct leave the bonded port areas should accept the
supervision according to relevant regulations on import supervision and examination of the Customs.
and export; the consigner or its agent may declare to
the Customs before the arrival of the goods at the Article 41
bonded port areas; after the arrival of the export goods, For inbound and outbound means of transportation
the Customs will receive the declaration and give service personnel and individuals that carry personal use
customs clearance, and issue the certification page of articles into and out of the bonded port areas, the
the declaration form for exported goods according to Customs will exert supervision according to related
related regulations. regulations on inbound and outbound luggage and
articles carried by passengers.
CHINA INDUSTRIAL DIGEST
When the following goods are transported into and out 3. Goods with import tax paid;
of the bonded port areas, enterprises concerned may
appoint special persons to carry them or transport 4. Goods for which enterprises do not require export
them on their own upon approval of the Customs: tax refund; and
1. Small amount of goods valued below US$10,000; 5. Other goods as approved by the Customs.
2. Goods transported back to suppliers out of the
bonded port areas due to inconformity of the quality;
CHAPTER VI Supplementary Provisions
Article 43 regulations and have constituted smuggling, and other
Goods that are shipped into the bonded port areas activities that violate the Customs Law, in accordance
from foreign countries and goods that are shipped to with provisions of the Customs Law and the
foreign countries from the bonded port areas will be Regulations of the People’s Republic of China on the
listed on the Customs import and export statistics, Implementation of Customs Administrative Punishment;
except those on which there are other stipulations as if a crime is committed, criminal liabilities will be
prescribed by laws, administrative regulations and pursued according to law.
Customs rules. Goods that are transported into the
bonded port areas from the outside and goods that are Article 45
transported outside from the bonded port areas will be This set of measures applies to the management of
listed on Customs single-item statistics. comprehensive bonded areas that have the functions of
bonded port area established in the inland area in China
Goods that are transferred and conveyed among the with the approval of the State Council.
enterprises in the bonded port areas and the goods that
are shipped between the bonded port areas and other Article 46
Customs special supervision or bonded supervision The interpretation right of this set of measures is with
areas will not be put on the Customs statistics. the General Administration of Customs.
Article 44 Article 47
The Customs will handle the activities that run against The Measures will go into effect as of October 3rd
this set of measures and Customs supervision 2007.
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