The GAC has amended the Measures for Customs' Supervision Over and Administration of Processing Trade Goods (“Processing Trade Measures”) through releasing the Decisions of the General Administration of Customs on Amending the Measures of the People's Republic of China for Customs Supervision over Processing Trade Goods (II). The amended version of the Processing Trade Measures came into effect on December 5, 2010.

The Processing Trade Measures were first released by the GAC on February 26, 2004, and has been amended by the Decisions of the General Administration of Customs on Amending the Measures of the People's Republic of China for Customs Supervision over Processing Trade Goods released on January 14, 2008. In comparison with the 2008 amendments, there are several changes contained in the current round of amendments, as described below:

  • Article 7 of the Processing Trade Measures is amended to be: processing trade goods shall not be mortgaged without the customs’ approval;
  • The following content has been added to the Processing Trade Measures to be Paragraph 3 of Article 9: Processing trade enterprises shall separately store processing trade goods and non-processing trade goods; processing trade goods shall be stored at places that have been filed for record with the customs and different categories of goods shall be stored in different zones; enterprises which intend to change the places where processing trade goods are stored shall obtain approval from the customs.
  • Article 24 of the Processing Trade Measures is changed to Article 25 thereof, and Article 25 of the Processing Trade Measures is changed to Article 24 thereof and has been substantially amended as follows:
    • Under any of the following circumstances, the enterprise applying for engaging in outward processing business shall provide the customs with deposit or bank guarantee equivalent to the amount of tax payable on the outward processing goods:
  1. The outward processing business involves more than one customs jurisdiction;
  2. All production procedures are under outward processing;
  3. Goods are exported directly after outward processing other than being transported back; or
  4. Although the goods under application for outward processing are not involved therein, the operation enterprise or the contractor is suspected of smuggling or other non-compliance, and the case has been placed on file for investigation by the customs but is still pending.
  • Measures for Customs' Supervision Over and Administration of Processing Trade Goods
  • Issuing Authority: the General Administration of Customs
  • Date of Issuance: November 1, 2010 / Effective Date: December 5, 2010