I. Registration of Processing Trade Contract

(I) Conditions for registration application:

1. Operation enterprises in processing trade must be import and export enterprises with import-export operations right, foreign-funded enterprises and foreign processing and assembly services companies with approved business license for processing trade with client-offered materials.

2. Processing enterprises in processing trade must be manufacturing enterprises with legal personality and factories which are established by operation enterprises, have obtained business license, are not qualified for legal personality but implement relatively independent accounting.

3. Operation and processing enterprises must complete registration with the Customs.

4. The processing trade contract for registration application has been reviewed and approved by competent authorities of commerce.

(II) Documents to be submitted for registration application:

1. Valid Approval Certificate for Processing Trade Business (excluding import accessories worth of less than USD 10,000) issued by competent authorities of commerce;

2. Certificate for Production Capacity of Processing Enterprise in Processing Trade (or its copies with corporate seal affixed if the enterprise applies for registration during period of validity of the Certificate for Production Capacity of Processing Enterprise in Processing Trade) issued by competent authorities of commerce if the operation enterprise is capable of processing;

3. Certificate for Production Capacity of Processing Enterprise in Processing Trade (or its copies with corporate seal affixed if the enterprise applies for registration during period of validity of the Certificate for Production Capacity of Processing Enterprise in Processing Trade) issued to the processing enterprise by competent authorities of commerce at or above county level at the location of the processing enterprise if the operation enterprise consigns processing;

4. Registration certificate from the departments of state taxes (excluding processing with client-offered materials);

5. Processing trade contract signed by the operation enterprise;

6. Contract on consigned processing entered into by and between the operation enterprise and processing enterprise if the operation enterprise consigns processing;

7. License issued by corresponding competent authorities for import and export goods in processing trade subject to restrictive provisions of the state;

8. Blank registration handbook of processing trade with corporate seal affixed;

9. Application Form for Registration of Processing Contract;

10. Application Form for Registration of Import Materials;

11. Registration Form for Processed Export Finished Products;

12. Application Form for Registration of Unit Consumption;

13. Report Form for Registration of Processing Contract of Enterprises subject to pre-entry;

14. Production process flow of the product;

15. Data needed to determine unit consumption and attrition rate;

16. Application Form for Processing Trade at Places Other Than the Place of Entry with Customs of the People’s Republic of China with comments of local supervisory customs at the location of the operation enterprise in case of registration of processing trade contract at places other than the place of entry;  

17. Other supporting documents and materials required by the Customs  

(III) Registration procedures:

1. Material acceptance

The applicant submits materials to the Customs. After acceptance, the Customs conduct preliminary review.

2. Review by the Customs

The Customs review the processing trade contract and other data of the enterprise to see whether they comply with relevant provisions of the state and customs.

3. Account establishment

For contracts which pass the review of the Customs, security accounts are to be established in Bank of China (excluding all contracts of Class AA enterprise and contracts of Class A and B enterprises which are worth less than USD 10,000).

4. Handbook verification and distribution

For contracts with security account established in the bank or not required to establish security account, the local supervisory customs distribute registration handbook of processing trade after verification. The enterprise goes through import and export procedures for processing trade goods with the handbook.

(IV) Time limit:

Registration is to be handled within five working days after the Acceptance Notice is issued.

II Change of Processing Trade Contract

(I) Conditions for application of change of contract:

1. Operation and processing enterprises have obtained the registration handbook of processing trade from the Customs.

2. Operation enterprises have signed the contract on change of processing trade.

3. The processing trade contract applied for change has been reviewed and approved by competent authorities of commerce.

4. The change of contract shall be within the period of validity of the original contract.

(II) Documents to be submitted for change application:

1. Valid Certificate for Change of Approval Certificate for Processing Trade Business issued by competent authorities of commerce;

2. The contract on change of processing trade signed by operation enterprises;

3. Registration handbook of processing trade from the Customs;

4. Application for change of contract;

5. Application Form for Registration of Processing Contract, Application Form for Registration of Import Materials, Registration Form for Processed Export Finished Products and Application Form for Registration of Unit Consumption (with the part in relation to change filled in);

6. Report Form for Registration of Processing Contract of Enterprises subject to pre-entry (with the part in relation to change filled in);

7. Data needed to determine unit consumption and attrition rate after change;

8. Other supporting documents and materials required by the Customs.  

(III) Procedures:

1. Material acceptance

The applicant submits materials to the Customs. After acceptance, the Customs conduct preliminary review.  

2. Review by the Customs

The customs review the contract on change of processing trade and other data of the enterprise to see whether they comply with relevant provisions of the state and customs.

3. Account change

For contracts which pass the review of the Customs, security accounts are to be changed in Bank of China (excluding all contracts of Class AA enterprise and contracts of Class A and B enterprises which are worth not more than USD 10,000 after change).

4. Handbook verification and distribution

For contracts with security account changed in the bank or not required to change security account, the local supervisory customs distribute the changed registration handbook of processing trade after verification. The enterprise goes through import and export procedures for processing trade goods with the changed handbook.

(IV) Time limit:

Change is to be handled within twenty working days after the Acceptance Notice is issued.

III Processing Trade Verification and Cancellation

(I) Conditions for application:

1. Operation enterprises in processing trade with legal personalities;

2. Re-export of materials under processing trade with imported materials under the processing trade contract has been completed.

3. Excess materials, leftover materials, finished products, defective products and byproducts have been accounted for after fulfillment of contract and can be declared truthfully with the Customs.

4. Excess materials, leftover materials, finished products, defective products and byproducts after fulfillment of contract have gone through procedures for taxation on domestic sale, return, abandonment, transfer of excess materials, etc.

5. Filed within 30 days after the export of the final batch of finished products under the handbook of processing trade or the expiry date of the handbook of processing trade;

6. Filed within 30 days after the date of termination of contract in case of early termination of the processing trade contract for some reasons.

(II) Documents to be submitted for application:

1. Application form for contract verification and cancellation;

2. Registration handbook of processing trade, including fascicule and renewed handbooks;

3. Complete and valid import/export declaration form (listed by the import/export record order in the Registration Handbook);

The sheet number and relevant content of the import/export declaration form shall match the import/export records in the import/export registration column of the Registration Handbook.

4. Verification, Cancellation and Accounting Table;

5. Copies of tax receipt and supporting documents if excess materials, leftover materials, finished products, defective products and byproducts after fulfillment of contract have gone through procedures for taxation on domestic sale, abandonment, destruction, etc.

6. Instructions from competent authorities of commerce where the performance of the contracts is suspended after registration or the contracts are to be canceled without occurrence of import/export;

7. Retention copy and reissued copy of the declaration form or duplicates of declaration form with seal of the original customs affixed if the import/export declaration form is lost;

8. Written statement on loss if the Registration Handbook is lost; Certificate for loss of handbook when necessary;

9. Other data required by the Customs, such as material arrangement diagram, course diagram and formula table.

(III) Procedures:

1. Acceptance of reporting for verification and cancellation

Enterprises submit necessary documents for verification and cancellation to the Customs. The customs accept the documents after review.

2. Verification and cancellation by the Customs

The customs review the contracts reported for verification and cancellation and issue contact list of account cancellation. Enterprises go to Bank of China for account cancellation with the contact list of account cancellation.

3. Cancellation and closure

The customs issue closing notice on processing trade contract after receiving the notice on account cancellation issued by the bank.

(IV) Time limit:

Within twenty working days after the date of acceptance of reporting for verification and cancellation.