On 30 December 2016, the GAC issued Announcement [2016] No. 86 (Announcement 86) which lays down new rules for the transfer of bonded goods between two enterprises located in different customs special supervised zones or Type B bonded logistics centers (Bonded Transfer).

1. Declaration Form for Transfer of Bonded Goods between Different Zones (Bonded Transfer Form) (海关保税货物区间流转申报表)

Enterprises engaging in Bonded Transfer must have a customs e-account and go through a recordal process by submitting a Bonded Transfer Form to the competent customs. Generally, the validity period of a Bonded Transfer Form is six months, and would not exceed 12 months. The basic requirements of filing the Bonded Transfer Form are as follows:

• Each Bonded Transfer Form must correspond to one e-account of the transfer-out enterprise and one e-account of the transfer-in enterprise.

• The description, tariff code and unit of measurement of the goods entered in the Bonded Transfer Form must be consistent with that recorded in the corresponding e-account.

• The unit of measurement and the quantity declared to customs by the transfer-out enterprise and the transfer-in enterprise must be consistent. Where the above is not consistent, the quantity required by law must be consistent.

• The first eight digits of tariff code of the same goods correspondingly declared by the transfer-out enterprise and the transfer-in enterprise must be consistent.

2. Batch delivery, centralized declaration method

Under a Bonded Transfer arrangement, enterprises can deliver or receive goods on a batch basis according to their business arrangement. Enterprises are required to report to the competent customs house for each batch of delivery or receipt within 30 days from the day of delivery or receipt. All deliveries made within 30 days are allowed to be combined such that only one centralized declaration has to be made. However, cross-calendar-year declarations are not permitted.

3. Restrictions for engaging in Bonded Transfer

The customs authority will not accept the Bonded Transfer Forms of the following enterprises:

• Enterprises which have failed to comply with the relevant customs supervision requirements and were ordered by customs to make rectification, but have not completed the rectification.

• Enterprises placed under customs investigations due to suspected involvement in any cases of smuggling or breach of regulations, where the investigations have not yet been concluded. Enterprises which have obtained customs agreement and paid a guarantee sum are not so restricted.

• Enterprises which have not made customs declaration or have not delivered the goods in accordance with the relevant regulations.

• Enterprises which have their relevant e-account frozen by customs for import and export.

• Enterprises classified as a "dishonest enterprise" in the customs credit authentication system.

Announcement 86 came into effect on 30 December 2016. It is anticipated that it will help to simplify the procedures, reduce costs and improve the efficiency of Bonded Transfer.