Six departments, including the General Administration of Customs, adjusted relevant management measures for special customs supervision zones, bonded supervision sites, and processing trade outside the zones

Six departments, including the General Administration of Customs, have adjusted the management measures related to special customs supervision zones, bonded supervision areas, and off-site processing trade. It is mentioned that for goods subject to tariff hikes imposed for the purpose of collecting retaliatory tariffs, after relevant exclusion measures are applicable and the tariff hikes are excluded, they can be imported into existing bonded ledgers, unless the goods are also subject to other measures. For enterprises within special customs supervision zones that utilize tax-exempt equipment within the customs supervision period to undertake commissioned processing businesses for corn, wheat, rice, and cotton provided by enterprises outside the zones, when corn, wheat, rice, and cotton enter the zones from outside the domestic bonded areas, no export license verification is required. The announcement will come into effect on June 10, 2025.

The full text of the announcement is as follows:

To strengthen the management of goods subject to tariff rate quota management, trade remedy measures, suspension of tariff reduction obligations, tariff hikes, and tariff hikes imposed for the purpose of collecting retaliatory tariffs (hereinafter collectively referred to as the four categories of measures) in special customs supervision zones, bonded supervision areas, and off-site processing trade, with the approval of the State Council, the relevant matters are hereby announced as follows:

I. Scope of Goods Covered by This Announcement

(1) Goods subject to tariff rate quota management. According to the "Protocol on the Accession of the People's Republic of China to the World Trade Organization" and relevant regulations, wheat, corn, rice, cotton, sugar, wool, wool tops, and chemical fertilizers subject to tariff rate quota management in China.

(2) Goods subject to trade remedy measures, suspension of tariff reduction obligations, tariff hikes, and tariff hikes imposed for the purpose of collecting retaliatory tariffs. The goods subject to the above-mentioned measures refer to goods subject to anti-dumping measures, countervailing measures, and safeguard measures, goods subject to the suspension of tariff reduction obligations and tariff hikes, and goods subject to tariff hikes imposed for the purpose of collecting retaliatory tariffs, in accordance with relevant laws and regulations of China.

II. Relevant Management Measures

(1) For bonded businesses conducted by enterprises in special customs supervision zones, bonded supervision areas, and off-site processing trade involving the import of goods under the four categories of measures from overseas, a special ledger shall be established. Goods under the four categories of measures imported from overseas that are not entered into the special ledger shall not be bonded.

For goods subject to tariff hikes imposed for the purpose of collecting retaliatory tariffs, after relevant exclusion measures are applicable and the tariff hikes are excluded, they can be imported into existing bonded ledgers (hereinafter referred to as general ledgers), unless the goods are also subject to other measures.

(2) Goods under the four categories of measures imported from overseas and their finished products after bonded processing can be transferred between special ledgers on a bonded basis, but they cannot be transferred to general ledgers on a bonded basis.

Commodities subject to the four categories of measures imported from overseas that have not been processed may be sold domestically, in accordance with current regulations. Finished products made from bonded processing of commodities subject to the four categories of measures imported from overseas that have not undergone bonded circulation may be sold domestically. When sold domestically, customs duties shall be levied on all bonded imported materials and components, and import-link VAT and consumption tax shall be collected in accordance with current regulations, with the four categories of measures being implemented. If bonded circulation has occurred, domestic sales are not permitted, but the products may be exported overseas.

(3) Non-four-category-measure commodities used in the processing of commodities subject to the four categories of measures imported from overseas shall be included in the management of special account books. Non-four-category-measure commodities that have not been fully utilized may be transferred to general account books through bonded circulation.

The aforementioned non-four-category-measure commodities include commodities directly imported from overseas that are not subject to the four categories of measures, commodities that have been exported with tax refunds and purchased domestically, and commodities transferred from general account books to special account books.

(4) Off-cuts, defective products, and by-products from processing trade under special account books shall not be sold domestically. They may be re-exported or destroyed in accordance with current regulations.

(5) Special account books shall not be used for conducting commissioned processing businesses within the area.

(6) Cross-border e-commerce commodities shall be managed under cross-border e-commerce account books in accordance with current regulations. However, cross-border e-commerce commodities subject to the four categories of measures shall not be transferred to general account books that are not of the cross-border e-commerce type.

(7) For imported materials and components within a special customs supervision area that are not subject to the four categories of measures, but whose finished products after processing are subject to the four categories of measures, selective collection of customs duties shall not apply when sold domestically. Instead, import customs duties shall be levied based on the actual state of the goods (finished products), and import-link VAT and consumption tax shall be collected in accordance with current regulations, with the four categories of measures being implemented.

III. Other Matters

(1) For enterprises within a special customs supervision area that utilize tax-exempt equipment within the customs supervision period to undertake commissioned processing businesses provided by enterprises outside the area using corn, wheat, rice, and cotton, no export license verification is required when the corn, wheat, rice, and cotton enter the area from outside the domestic bonded area.

(2) For commodities subject to the four categories of measures that have already entered special customs supervision areas, bonded supervision sites, and general account books for processing trade outside the area before the official implementation date of the announcement, current regulations shall apply. After the official implementation date of the announcement, if commodities are newly classified as subject to the four categories of measures due to policy adjustments and have already entered special customs supervision areas, bonded supervision sites, and processing trade account books outside the area, no adjustments to management measures will be made.

(3) If the commodities managed under this announcement are subject to entry-exit prohibitive or restrictive management measures, they shall be implemented in accordance with current national regulations.

(4) The special customs supervision areas referred to in this announcement include comprehensive bonded zones, bonded ports, bonded areas, and the Zhuhai Park of the Zhuhai-Macao Cross-border Industrial Zone. The bonded supervision sites referred to include bonded logistics centers, bonded warehouses, and export supervision warehouses.

(V) This announcement shall come into force on June 10, 2025. In the event of any inconsistency between the existing regulations and this announcement, this announcement shall prevail. Joint Announcement No. 44 of 2024 by the General Administration of Customs, National Development and Reform Commission (NDRC), Ministry of Finance, Ministry of Agriculture and Rural Affairs, Ministry of Commerce, and State Taxation Administration (Announcement on Adjusting the Management Measures for Sugar in Special Customs Supervision Zones and Processing Trade Outside These Zones) is hereby abolished.

It is hereby announced.

General Administration of Customs, National Development and Reform Commission, Ministry of Finance

Ministry of Agriculture and Rural Affairs, Ministry of Commerce, State Taxation Administration

May 9, 2025