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Processing Trade in China (2018 Update)

By EU SME Centre | Guidelines      04.06.2018     Tags:

Processing trade refers to the business activity of importing all, or part of, the raw and auxiliary materials, parts and components, accessories, and packaging materials from abroad in bond, and re-exporting the finished products after processing or assembly by enterprises within mainland China. China has a bonded system on processing trade. Under this system, the amount of materials and components imported for the purpose of processing trade is exempt from tariffs. This document outlines the legal framework of processing trade, the advantage of taxation and customs supervision.

Key Contents

General Overview 
  • Tariffs and Non-Tariffs Measures that Affect Processing Trade 
  • Location of Processing Trade Enterprises 
  • Regulation Trends 
Business Models
  • Processing with Supplied Materials 
  • Processing with Imported Materials 
Operating Models 
  • Fully Bonded Model 
  • Semi-Bonded Model 
  • Summary 
Processing Trade Supervision in China 
  • Related Authorities 
  • Handbook and E-Account Supervision 
  • Bonded Supervision 
  • Classification of Imported Products for  Processing Trade 
  • Management of Enterprises by Category 
  • Domestic Sale in China
  • Verification and Cancellation of Exports
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