Processing Trade Business Related Procedures (II)

Note: 1) Customs implements a factory inspection system for enterprises engaging in processing trade for the first time; for enterprises with complete documents and that pass the factory inspection, Customs will issue the "Registration Manual" within 3 working days.

2) Enterprises applying for filing of processing trade contracts that are Class AA are exempt from establishing an account; Class A enterprises need to establish an account, implementing a "virtual transfer"; Class B enterprises need to establish an account, with general commodities implementing "virtual transfer" and restricted commodities implementing "actual transfer"; Class C enterprises need to establish an account, all implementing "actual transfer"; Class D enterprises are not allowed to conduct processing trade. If the operating unit and the processing enterprise are not in the same classification, Customs will manage them according to the principle of following the lower classification. For auxiliary materials provided by foreign businessmen that fall within the specified scope and amount to less than USD 5,000, the manual is exempted, and it is not included in account management.

3. Required documents for handling the filing procedures of 78 types of buyer-supplied auxiliary materials amounting to less than USD 5,000:

1. Application report.

2. Import invoice, packing list (in duplicate).

3. Export contract (in duplicate).

4. Letter of introduction or power of attorney from the operating unit.

4. Contract Verification and Write-off

(I) Basic Process:

Within one month after the execution of the contract is completed, the enterprise applies to customs for verification and write-off. 

--> Pre-entry

--> Customs review

--> Issuance of "Account Verification Contact Note"

--> Bank of China account write-off

--> Customs verification and case closure 
 
--> Print case closure notice. 

Note: Enterprises must complete the verification and write-off procedures with customs within the specified time limit. Enterprises that fail to do so without justifiable reasons will be penalized by customs according to relevant provisions.

(II) Required Documents 

1. Application report from the operating unit for verification and write-off. 
 
2. Import and export customs declarations.

3. "Registration Manual".

4. Other documents required by customs, such as calculation tables, material cutting diagrams, and other materials reflecting actual processing conditions.