Processing trade service

Processing Trade

I. What is Processing Trade

Processing trade mainly refers to forms such as outward processing and assembly, small - and medium - sized compensation trade, and processing with imported materials.

II. Description of the Processing Trade Process

1. Basic Procedures for Contract Filing

• Approval by the economic and trade department
• Purchase blank "Registration Manual" from the customs service center
• Pre - entry of the contract
• The customs issues a "Contact Note for Opening a Margin Account" after review
• Apply to the Bank of China to establish an account
• The customs verifies and records the "Account Registration Notice" issued by the bank
• The customs conducts computer - based off - site transmission
• Issue the "Registration Manual" after receiving the successful transmission receipt.

2. Documents Required for Contract Filing

1. Application report of the operating unit.
2. "Approval Certificate" from the foreign economic and trade competent department. For processing with imported materials, it needs to be stamped by the tax department.
3. Import and export contracts signed with foreign parties.
4. Proof of the establishment of the basic account of the operating unit.
5. "Processing Production Capacity Certificate" issued by the economic and trade department at the location of the processing enterprise.
6. In case of entrusted processing, a commission processing contract (agreement) that complies with the "Contract Law of the People's Republic of China" signed between the operating unit and the processing enterprise should be provided.
7. For off - site processing trade, a customs seal issued by the customs at the location of the operating unit should be provided, containing a "Off - site Processing Application Form" in duplicate.
8. For the first - time processing trade, copies of the "Business License", "Tax Registration Certificate" and "Customs Registration Notice" of the operating unit and the processing enterprise should be provided.
9. Letter of introduction or power of attorney of the operating unit.
10. Processing technology description.
11. If import and export customs declaration is required at off - site ports, the "Off - site Customs Declaration Application Form" should be filled out.
12. Other materials required by the customs.
    
13. Notes:
    

1. The customs implements a factory - inspection system for enterprises that carry out processing trade for the first time. For enterprises with complete documents and passing the factory inspection, the customs will issue the "Registration Manual" within 3 working days.
2. For enterprises filing processing trade contracts that are classified as AA - class, no margin account is required; for A - class enterprises, a margin account is required and it is "emptily transferred"; for B - class enterprises, a margin account is required. For general commodities, it is "emptily transferred", and for restricted commodities, it is "physically transferred"; for C - class enterprises, a margin account is required and it is "physically transferred" without exception; D - class enterprises are not allowed to carry out processing trade business. When the operating unit and the processing enterprise are not of the same classification, the customs manages them according to the principle of taking the lower classification. For imported auxiliary materials provided by foreign merchants within the specified scope and with an amount of less than 5,000 US dollars, no manual is required and it is not included in the margin account management.
3. Documents Required for Filing Procedures of 78 Types of Customer - Supplied Auxiliary Materials under 5,000 US Dollars

4. Contract Cancellation

1. Basic Process: The enterprise applies to the customs for cancellation within one month after the completion of the contract
   

• Pre - entry
• Customs review
• Issue the "Margin Account Cancellation Contact Note"
• The Bank of China writes off the account
• The customs cancels the case
• Print the case - closing notice.
  
• Note: The enterprise must handle the cancellation procedures with the customs within the time limit specified by the customs. For enterprises that fail to handle the cancellation procedures with the customs without justifiable reasons, the customs will impose penalties in accordance with relevant regulations.
  

1. Required Documents