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Processing trade business process in China

[Processing trade business process]

 

 

 

Processing trade is processed generally in accordance with the above diagram, its focus as below: (Other processes will be mentioned in detailat their parts.)

 

 

Process Description

 

Signing contract applying for processing trade permit and production capacity approval at business department in charge recording and registering processing trade permit at State Administration of taxation recording processing trade contract at customs processing products customs clearance for import and export goods contract write-off applying for "processing trade permit" write-off

 

If necessary, deposit account for processing trade is required to set up.

 

 

Application for approval of processing trade enterprises operating conditions and production capacity

 

Main parts of application

 

3 types of application form for approval:

 

Operating conditions of processing unit: filled and applied by import and export operating enterprises.

 

approval of processing trade enterprises operating conditions and production capacity: filled and applied by production enterprises with import and export operating right

 

approval of processing trade production capacity: filled and applied by processing enterprises without import and export operating right.

 

Valid period and competent authority

 

approval of processing trade enterprises operating conditions and production capacity is valid for one year and supervised by local competent authority.

 

 

Application of processing trade permit and issuing

 

Materials for application

 

Processing trade permit is a necessary precondition for processing trade, the following documents and materials should be provided to competent authority:

 

Application Form for processing trade Permit

Certificate of business enterprises import and export business registration (or foreign-invested enterprises approval certificate);

"approval of processing trade enterprises operating conditions and production capacity" issued by the processing trade enterprises or production enterprise business competent authority.

Business licence of business enterprises or processing enterprises (copy);

Enterprises import and export contracts signed with foreign enterprises(original);

Processing agreement or contract signed by business enterprises and processing enterprises (original);

 

Foreign-invested enterprises as business enterprises or processing enterprises should provide contracts recognized by competent authorities to describe the scope and scale of production, regulations and proof of received investment funds and certificate of joint annual review evidence.

 

* Not for first application

 

Application not for the first time is only required to provide for the application form for processing trade, signed import and export contract, processing agreement signed by business enterprises and processing enterprises.

 

Review and issuing

 

The first time for applying processing trade enterprises is required to receive site appraisal by the competent authority.

 

The processing period is 15 working days for the first application, and three working days for re-application.

 

Prepare all required application materials and submit to processing trade business department in charge of review. Qualified enterprises will be issued processing trade permit and stamped with the special seal of processing trade permit.

 

 

Record processing trade contract at State administration of taxation

 

Business enterprises should prepare all below materials for registering processing trade contract at State administration of taxation:

 

Processing trade permit;

Application of imported materials and parts record list

Application of export of finished products record list

Imported materials and parts and corresponding export of finished products Material quantity applied per unit record list

Import and export contract, processing contract, commissioned processing contract;

Proof of production capacity of processing enterprises

Other materials required by State administration of taxation

 

 

Customs processing trade contract recording and issuing of manuals

 

In order to manage the processing trade imported materials and parts properly, the State establishes and implements processing trade record system with the customs as main objects (customs supervision measures of processing trade goods of China).

 

According to this system, the processing trade enterprises can apply from the customs for registration manuals of processing trade, and record thedetails occurred during processing trade process in the manuals, such as materials and parts import and products export.

 

Processing trade enterprises should provide below materials for customs processing trade contract record and issuing of manuals:

 

Processing trade permit;

Proof of production capacity of processing enterprises

Record proof issued by taxation institution;

Processing trade contract

Commissioned processing contract

Import and export permits issued by related national authorities (if necessary);

Application form for processing trade contract record;

Application form for imported materials and parts record;

Processing import and export products record form;

Material quantity applied per unit record form

Business processing contract submission application;

Description of production technology

Description materials of determined Material quantity applied per unit and loss;

Application form for foreign-invested processing trade (if necessary);

Other materials required by customs.

 

 

Change of processing trade contract

 

The change of contract must be applied within the valid period of processing trade permit.

 

Required materials are original processing trade manuals, official sealed "Application form for the change of processing trade permit" and contract after the change.

 

 

< Electronic network of processing trade business processes >

 

Apply for electronic keys of CA certificate for identification at local representative office

 

Online application for proof of operating conditions and production capacity of processing trade enterprises

 

Contact with local representative office for “Processing trade business permit” declaration procedures

 

Use processing trade procedures to fill in the application and change of “Processing trade business permit”

 

Approval at approving authority

 

Inquire the approval status by processing trade software

 

 

Summary

 

Since 2001, the State has developed a "Processing trade enterprise electronic network approval management system of temporary implementation methods," and carried out the electronic network management of processing trade approval system.Designated management enterprises of electronic networking system by Government will be implemented the following preferential policies:

 

Without the implementation of bank deposit account system

 

Foreign trade management institution will not review imported materials and parts with contract in detail and specify the processing trade business scope in accordance with the enterprises’ credibility and capacity.

 

The competent customs will not supervise registration manuals but implement management of network.

 

 

Materials required for electronic networking system application

 

Business licence of processing trade enterprises (copy);

"Acceptance certificate for the Customs implementation of enterprises networking system management"

Import and export permit documents or approval certificate of foreign-invested enterprises (copy);

Annual inspection records (not including the newly established enterprises which not yet reached the time of inspection);

Original proof of processing capacity issued by county level above foreign trade authorities in the area of local processing enterprises registered

 

 

Supervision methods

 

Foreign trade management institution accepts application of designated enterprises electronic network system management and issues processing trade business permit of electronic networking system management after reviewing.

According to the processing trade business permit of electronic networking system management, the customs sets up processing trade electronic account books and supervises electronic networking system.


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