The Ministry of Finance, the General Administration of Customs and the State Administration of Taxation jointly issued a circular on July 2, 2014 to address issues concerning the bonded policies for the importation of steel materials under processing trade. This circular primarily contains two aspects of requirements.
- The bonded policies for imported steel materials under processing trade are cancelled for the first batch of imported hot rolled plates, cold rolled plates, narrow strips, rods and wires, profiles, steel wires, electrical steel, etc. under 78 tax IDs, which can be completely produced domestically with quality meeting the needs of downstream processing enterprises. The levy of tariffs and import linkage taxes commenced on July 31, 2014. For a contract executed prior to July 31, 2014 with actual imports prior to December 31, 2014, bonded processing trade is still permitted within the term of the contract.
- The above policy measures apply to special customs supervision zones such as comprehensive bonded zones with the temporary exception of enterprises which have set up and engaged in the processing trade of the products enumerated in the Annex within the zones before July 31, 2014.