Measures of the Customs of the People's Republic of China for the Administration of Comprehensive Bonded Zones

Chapter I      General Provisions

Article 1 For the purposes of regulating the administration of the comprehensive bonded zones by the Customs and promoting the high-standard opening up and high-quality development of comprehensive bonded zones, these Measures are formulated in accordance with the Customs Law of the People's Republic of China, the Law of the People's Republic of China on Import and Export Commodity Inspection, the Law of the People's Republic of China on the Entry and Exit Animal and Plant Quarantine, the Frontier Health and Quarantine Law of the People's Republic of China, the Food Safety Law of the People's Republic of China, and other relevant laws, administrative regulations and relevant rules of the state.

Article 2 The Customs shall, in accordance with these Measures, supervise and administrate the means of transportation, goods and their outer packaging, containers, and articles entering and leaving comprehensive bonded zones, as well as enterprises in comprehensive bonded zones (hereinafter referred to as “in the zones”).

Article 3 Comprehensive bonded zones shall be subject to closed administration.

There shall be no resident allowed to inhabit in the zones except for the security guards..

Article 4 The infrastructure and the supervision and control facilities in the comprehensive bonded zones shall comply with the setting standards for the infrastructure and the supervision and control facilities in the comprehensive bonded zones and pass the acceptance inspection by the Customs in conjunction with the relevant departments.

Article 5 Enterprises in the zones may carry out the following business in accordance with the law:

(1)    research and development, processing, manufacturing and re-manufacturing;

(2)    testing and maintenance;

(3)    storage of goods;

(4)    logistics distribution;

(5)    financial leasing;

(6)    cross-border e-commerce;

(7)    exhibition of commodities;

(8)    international entrepot trade;

(9)    international transit business;

(10) port operation;

(11) bonded delivery of futures; and

(12) other business that may be carried out in the zones as prescribed by the state.

Article 6 The Customs shall implement computer network management of enterprises in the zones to improve the information-based and intelligent management of comprehensive bonded zones.

Chapter II    Administration of Goods Transported between Comprehensive Bonded Zones and Overseas Areas

Article 7 Unless as otherwise prescribed by laws and regulations, goods and articles prohibited by the state to be imported and exported shall not be transported between comprehensive bonded zones and overseas areas.

Article 8 Goods and articles transported between comprehensive bonded zones and overseas areas shall not be subject to tariff quotas and license control, unless as otherwise prescribed by laws, regulations or any international treaty or agreement to which China is either a contracting party or an acceding party.

Article 9 Consignees and consignors of goods transported between comprehensive bonded zones and overseas areas or their agents shall truthfully declare the goods to the Customs, complete the Recordation List for Inbound and Outbound Goods and handle the relevant formalities in accordance with the rules of the Customs.

Article 10 Goods transported to comprehensive bonded zones from overseas areas and their outer packaging and containers shall be subject to quarantine inspection at the entry port by the Customs according to the law. For restrictions on the port conditions and other reasons, the Customs may implement quarantine inspection at qualified places (sites) in the zones.

Goods transported from comprehensive bonded zones to overseas areas and their outer packaging and containers shall be subject to quarantine inspection by the Customs according to the law.

Means of transport moving between comprehensive bonded zones and overseas areas shall be subject to quarantine inspection by the Customs in accordance with the relevant provisions on inbound and outbound means of transport.

Article 11 Goods transported from overseas areas to comprehensive bonded zones shall be bonded, except under the circumstances as specified in Articles 12 and 14 of these Measures.

Article 12 Unless as otherwise prescribed by laws and regulations, the following goods transported from overseas areas to comprehensive bonded zones shall be exempted from import duties and taxes in the import link:

(1)    Machines and equipment required for infrastructure construction projects related to production and infrastructure materials required for the construction of production plants and storage facilities in the zones;

(2)    Machines, equipment, and molds required by enterprises in the zones to carry out the business listed in Article 5 of these Measures, and their maintenance spare parts;

(3)    Reasonable amount of office supplies for self-use by the administrative authorities of the comprehensive bonded zones and enterprises in the zones;

From the date when the State Council approves the establishment of comprehensive bonded zones, the machines and equipment transported from overseas areas to comprehensive bonded zones for self-use by enterprises in the zones shall be governed by the provisions of the preceding paragraph.

Article 13 The term of supervision and control of goods listed in Article 12 of these Measures shall be governed by the provisions on the term of supervision and control of imported goods subject to duty reduction or exemption, and the supervision shall be automatically terminated upon expiry of the term , and an enterprise applying for early termination before expiry of the term of supervision and control shall handle the formalities according to the relevant provisions on payment of tax arrears of imported goods subject to duty reduction or exemption, and obtain relevant licenses for goods subject to license control.

Article 14 For means of transport and consumer goods from overseas areas to comprehensive bonded zones for self-use by enterprises in the zones and administrative authorities, the Customs shall levy import duties and taxes in the import link in accordance with the law.

Article 15 Unless as otherwise prescribed by laws and regulations, goods transported from comprehensive bonded zones to overseas areas shall be exempted from export duties.

Chapter III    Administration of Goods Transported between Comprehensive Bonded Zones and an Outer Area

Article 16     For goods transported between comprehensive bonded zones and any other areas within the territory of the People's Republic of China (hereinafter referred to as the “outer area”), the enterprises in the zones or the consignees and consignors in the outer areas shall handle the relevant formalities with the Customs in accordance with the provisions.

Where the goods are subject to duty quotas and license control, the enterprises in the zones or the consignees and consignors in  the outer areas shall obtain such tariff quotas and licenses; the Customs shall verify the tariff quotas and conduct automatic system comparison and verification on the electronic data of licenses.

Article 17 Unless as otherwise prescribed by laws and regulations, the Customs shall not implement quarantine inspection on goods transported between comprehensive bonded zones and the outer areas and their outer packaging and containers.

Article 18 For goods transported between comprehensive bonded zones and the outer areas, the enterprises in the zones or the consignees and consignors in  the outer areas shall, according to law, pay customs duties and taxes in the import link in terms of  the actual conditions of the goods at the time when entering or exiting the bonded zones .

When the goods processed and produced by enterprises in the zones exit the zones for domestic sales, the enterprises in the zones or the consignees and consignors in the outer areas may choose to pay customs duties corresponding to their imported materials and parts, and pay the tax-deferred interest in arrears; the taxes in the import link shall be paid, in accordance with relevant provisions,  based on  the actual conditions of the goods exiting the bonded zones.

Article 19 Goods under the preferential trade agreement that are transported from comprehensive bonded zones to the outer areas, may apply the agreed rate or preferential tax rate if they comply with the relevant provisions on management of origin. .

Article 20 Goods entering the comprehensive bonded zones by export declaration shall be bonded; machines and equipment, among others, purchased by enterprises in the zones from the outer areas,  shall be managed by reference to the provisions on the term of supervision and control of imported goods subject to duty reduction or exemption, and the supervision shall be automatically terminated upon expiry of the term, and submission of licenses may be exempted; and an enterprise applying for early termination before expiry of the term of supervision and control shall handle the relevant formalities by reference to the relevant provisions on payment of tax arrears of imported goods subject to duty reduction or exemption, and be exempted from submitting the licenses.

The export tax refund of the goods specified in the preceding paragraph shall be handled in accordance with the relevant regulations of the state.

Article 21 When the leftover materials, defective products and by-products engendered by enterprises in the zones with bonded materials in the process of production and processing and the packaging materials produced in the process of production, processing, storage, transportation, etc. are transported to the outer areas for sale, enterprises in the zones shall pay taxes according to the actual conditions of the goods exiting the zones. Where the defective products and by-products are subject to tariff quotas and  license control, enterprises in the zones or the consignees and consignors in  the outer areas shall obtain such tariff quotas and licenses; the Customs shall verify the tariff quotas, and conduct automatic system comparison and verification on the electronic data of licenses.

Article 22 Solid waste engendered by enterprises in the zones that has not been re-shipped out of the territory of China shall be managed in accordance with the relevant domestic provisions on solid waste. Where it needs to be transported to the outer areas for storage, use or disposal, formalities for exiting the zones shall be processed  with the Customs as required.

Article 23     An enterprise in a zone that destroys and disposes of the goods in the zone according to law shall handle the relevant formalities and assume the cost of destruction and disposal. The formalities shall be processed in accordance with Article 22 of these Measures for solid waste generated from destruction when it leaves the zone.

Article 24 Enterprises in the zones may handle centralized declaration formalities in accordance with the rules of the Customs.

Unless as otherwise prescribed by the General Administration of Customs, enterprises in the zones shall handle centralized declaration procedures for goods each quarter before the 15th day of the month following the end of that quarter, but not later than the deadline for the verification and writing-off of the account books, and the formalities shall not be postponed to the next year.

The tax rate and exchange rate for tax collection implemented on the date when the enterprise undergoes the formalities for the payment of taxes  shall apply to centralized declaration.

Article 25 Goods transported between the comprehensive bonded zones and any other comprehensive bonded zones such as special areas under the supervision and control of the Customs or any other bonded places under the supervision and control of  the Customs shall be bonded.

Goods circulating between the comprehensive bonded zones and any other comprehensive bonded zones such as special areas under the supervision and control of the Customs or any other bonded places under the supervision and control of  the Customs  are exempt from customs duties and taxes in the import link.

Chapter IV Administration of Goods in Comprehensive Bonded Zones

Article 26 Goods within the comprehensive bonded zones may freely circulate. In cases of conveyance or transfer of goods between the enterprises within the area, the two parties concerned shall submit to the Customs in a timely manner the relevant electronic data, such as the name, quantity and amount of the goods to be conveyed or transferred.

Article 27 Enterprises within the zones may use the duty-free equipment within the supervision period to accept the entrustment of enterprises in  the outer areas to carry out the processing business.

When carrying out entrusted processing business, the enterprises in the zones shall set up special electronic account books for entrusted processing. If bonded materials need to be used for the entrusted processing, the enterprises in the zones shall report to the customs for the recordation.

For solid waste generated from the entrusted processing, formalities shall be processed in accordance with Article 22 of these Measures when it exits the zones.

Article 28 Where enterprises in the zones transport machines, equipment, parts and components, molds or office supplies for their own use to the outer areas for inspection,test or maintenance according to customs regulations, they shall not be used for processing, manufacturing or use in  the outer areas during inspection or repair, and shall be transported back to the comprehensive bonded zones within 60 days from the date when they are transported to the outer area. Where they cannot be transported back as scheduled for some reason, enterprises in the zones shall apply to the Customs in writing for an extension within 7 days before the expiry of the period, and the extension shall not exceed 30 days.

Where, under special circumstances, the goods specified in the preceding paragraph cannot be inspected or repaired and transported back to the comprehensive bonded zones within the above specified time limit, they may be transported back to the comprehensive bonded zones within the inspection or repair contract period with the approval of the customs.

For the replacement of spare and accessory parts,  the original spare parts and accessory parts shall also be transported back to the comprehensive bonded zones; if it is necessary to dispose of them in the outer areas, the customs shall levy taxes according to their actual conditions.. Where the domestic spare parts and accessory replaced in  the outer areas need to be tax-refunded, the enterprises shall handle the formalities in accordance with the relevant regulations.

Article 29 Where the enterprises in the zones transport molds, raw materials, semi-finished products, etc. to an outer area for outward processing according to the customs regulations, the outward processing period shall not exceed the validity period of the contract, and the processed goods shall be transported back to the comprehensive bonded zones as scheduled.

For the leftover scraps, defective products or by-products that are not transported back into the bonded area, the Customs shall levy taxes and duties in the light of their actual conditions. . Where the defective products and by-products are subject to tariff quotas and license control, the enterprises in the zones or the consignees and consignors in the outer areas shall obtain such tariff quotas and licenses; the Customs shall verify the tariff quotas and conduct automatic system comparison and verification on the electronic data of licenses.

Article 30 In case of losses or damages of the goods as a result of force majure the enterprise in the zones shall report to the Customs in a timely manner . After due examination and verification by the Customs, enterprises in the zones may handle the formalities in accordance with the following provisions:

(1)Where the goods are lost, or goods, though not lost, have wholly lost their value for use, the formalities for writing them off after verification and exempting them from any taxes or duties shall be processed;

(2)    Where the goods entering the comprehensive bonded zones from abroad or entering the comprehensive bonded zones from outer areas and the goods for which the export tax refund formalities have been undergone are damaged and have lost part of their use value, the formalities for domestic sales or return shall be processed.

(3)Where the goods entering the comprehensive bonded zones from outer areas without undergoing the export tax refund formalities are damaged and have lost part of their use value and need to be returned to or replaced by the export enterprises, the return formalities shall be processed.

Article 31 In case of losses or damages of the goods as a result of mismanagement or other non force majeure factors,, the enterprise in the zones shall report to the Customs in a timely manner and give an explanation. After due examination and verification by the Customs,  the enterprise may handle the formalities in accordance with the following provisions:

(1) For goods entering the comprehensive bonded zones from overseas areas, the enterprise in the bonded zones shall abide by the general provisions on import goods and pay the customs duties and the taxes to be withheld by the Customs at the import links on the basis of the taxable prices before the loss or damage determinedby the Customs and according to the applicable duty rate and exchange rate for tax collectionon the date of the occurrence of the loss or the damage;

(2)    For goods entering the comprehensive bonded zones from an outer area, the relevant domestic link taxes refunded due to export shall be repaid,  and the export customs duties already paid shall not be refunded.

Article 32 After being approved by the Customs and relevant competent departments, goods for which enterprises in the zones apply for abandonment shall be taken and sold by the Customs according to law, and the sale proceeds shall be handled in accordance with the relevant provisions issued by the state, except under the circumstances that they cannot be abandoned as prescribed by any law or regulation.

Article 33 Unless as otherwise prescribed by any law or regulation, there shall be no storage period set for goods in the zones.

Chapter V     Administration of Enterprises in the Zones

Article 34 Enterprises in the zones and their branches shall obtain the qualification of market entities and handle the registration or recordation formalities with the Customs according to law.

Enterprises engaged in food production in the zones shall obtain a domestic production license according to law.

Article 35     Enterprises in the zones shall regulate financial management in accordance with the laws and regulations and set up customs electronic account books in accordance with Customs regulations. The recordation, modification and verification of electronic account books shall be carried out in accordance with relevant Customs regulations.

Article 36 The Customs shall implement an audit and verification system for enterprises in the zones.

Enterprises in the zones shall cooperate with the Customs for the audit and verification and truthfully provide relevant account books, documents as well as other relevant information and electronic data.

Article 37     Enterprises in the zones that carry out business involving customs affairs guarantee shall be governed by the relevant provisions on customs affairs guarantee.

Chapter VI  Supplementary Provisions

Article 38     Inspection of goods entering or leaving the comprehensive bonded zones shall be governed by the relevant provisions.

Article 39     The means of transportation and personnel entering and leaving the comprehensive bonded zones shall enter and exit through designated channels, and the Customs shall conduct inspections as required.

Where service personnel of the means of transport moving between the comprehensive bonded zones and overseas areas carry personal belongings to enter and leave the comprehensive bonded zones, the Customs shall conduct supervision and control in accordance with the relevant provisions on the luggage of inbound and outbound passengers.

Article 40     The lawful implementation of supervision and control by the Customs in the comprehensive bonded zones shall not affect the performance of corresponding duties by the local governments and other departments in accordance with the law.

Article 41     Unless as otherwise prescribed by any law or regulation, the Customs shall keep statistical compilation of imported and exported goods transported between overseas areas and the comprehensive bonded zones; individual Customs statistical reports and Customs business statistical reports shall be made according to the management needs; and Customs business statistical reports shall be filed for Customs supervision and management activities and internal management affairs related to the comprehensive bonded zones.

Article 42     Where a pilot program for the qualification of general value added tax payers is implemented in the zones, the relevant provisions of the pilot policies for the qualification of general value added tax payers shall apply.

Article 43     For domestic goods entering the zones that involve no export duties and licenses, require no tax rebates and are not included in customs statistics, the Customs shall implement convenient entry and exit management.

Article 44     Any act in violation of these Measures shall be punished by the Customs in accordance with relevant laws and regulations; if the case constitutes a crime, criminal responsibility shall be investigated according to law.

Article 45     The requirements for establishment review, construction acceptance, supervision and management of comprehensive bonded zones shall be governed by the relevant provisions issued by the state.

Article 46     These Measures shall be subject to interpretation by the General Administration of Customs of the People's Republic of China.

Article 47     These Measures shall come into force on April 1, 2022. The Interim Measures of the Customs of the People's Republic of China for the Administration of Bonded Port Areas promulgated in the form of Decree No. 164 of the General Administration of Customs on September 3, 2007 and amended by Decree No. 191 of the General Administration of Customs on March 15, 2010, Decree No. 235 of the General Administration of Customs on December 20, 2017, Order No. 240 of the General Administration of Customs on May 29, 2018 and Decree No. 243 of the General Administration of Customs on November 23, 2018, and the Measures of the Customs of the People's Republic of China for the Administration of Bonded Logistic Parks promulgated in the form of Decree No. 134 of the General Administration of Customs on November 28, 2005 and amended by Decree No. 190 of the General Administration of Customs on March 15, 2010, Decree No. 235 of the General Administration of Customs on December 20, 2017, Decree No. 240 of the General Administration of Customs on May 29, 2018 and Decree No. 243 of the General Administration of Customs on November 23, 2018 shall be abolished simultaneously.