The Annoucement has been effective since September 1, 2016. The key points are summarised as follow:

  1. The first is to cancel the approval for both processing trade contracts and the domestic sales of bonded imported materials or finished products for processing trade with the competent authorities of commerce. Authorities of commerce at all levels shall no longer issue the Approval Certificate for Processing Trade Business, the Approval Certificate for Networked Surveillance of Enterprises’ Processing Trade Business, the Approval Certificate for Domestic Sales of Bonded Imported Materials for Processing Trade, the Approval Certificate for Non-priced Equipment for Processing Trade, and the Administrative Commission for Special Customs Surveillance Zones shall no longer issue the Approval Certificate for Processing Trade Business in Export Processing Zone and the Approval Certificate for Deep Processing Carry-over Business in Export Processing Zone. 
  2. The enterprises operating processing trade business can proceed with the formalities for establishment (change) of the processing trade manual (account book) at customs by presenting a valid Certificate of Operation and Production Capacity of Processing Trade Enterprises issued by the competent authorities of commerce or the Administrative Commission for Special Customs Surveillance Zones. The customs shall no longer verify relevant approval certificates and shall establish (change) the manual in accordance with the scope of tax items ( i.e. the first 4 digits of HS code) prescribed in the Certificate of Operation and Production Capacity of Processing Trade Enterprises. In case of prohibited or restricted processing trade goods, the enterprise shall handle the relevant formalities after obtaining the approval documents from the Ministry of Commerce. 
  3. Where bonded imported materials or finished products for processing trade outside the Special Customs Surveillance Zones are to be sold domestically, the customs shall collect tax and tax-deferred interest according to law. In case of the imported materials involving approval certificate administration, the enterprise shall refer the relevant approval certificates to the customs.