< Management of processing trade equipment provided free of charge>

■ What is the processing trade equipment provided free of charge?

Equipment provided free of charge means equipments provided by processing trade enterprises engaged in processing trade or foreign-invested enterprises which do not need to pay foreign exchange for imported equipment or equipment without paying for processing fees or repaying the difference.

■ Application process for registration manuals of equipment provided free of charge

Enterprises applying for equipment provided free of charge registration manuals should first submit application form to competent commercial department. After approval processing trade contract and processing trade permit, application list for equipment provided free of charge will be issued by Foreign Trade and Economic department for import exemption record at competent customs.

Specific procedures as below:

Enterprises submit relevant materials and declare electronic data →Approval of commercial department →Applying for record at customs by enterprises →proval of customs →issuing of registration manuals

■ Materials should be submitted for equipment provided free of charge registration manuals application

Below materials should be submitted to customs for equipment provided free of charge registration manuals application:

ㅇProcessing trade contract record form, Processing trade registration manuals

ㅇImport contract of processing trade equipment provided free of charges ;

ㅇApplication Form for processing Trade equipment provided free of charge and processing trade equipment provided free of charge permit;

ㅇApplication list of processing trade equipment provided free of charge record;

ㅇInformation notes of enterprises;

ㅇOther materials required by customs

※ Processing trade equipment provided free of charge is approved by the competent economic and trade department.

※ As for processing trade contract, the relevant provisions of imported equipment provided free of charge must be clearly recorded.

■ Management of processing trade Equipment provided free of charge

☉ Supervision period

Processing trade equipment provided free of charge is supervised by customs since import date to export sending back or the date of customs deregulation, and the supervision period is 5 years.

Within the supervision period, the equipment is forbidden for domestic sales, exchange, transfer, mortgage or use. It must be used for the processing trade business.

☉ Extension of equipment provided free of charge registration manuals

The valid period for equipment provided free of charge registration manual is usually one year approved by the customs. After the expiration, if the enterprises need to continue using the imported equipment provided free of charge, extension application should be applied to the competent customs.

■ Write off of equipment provided free of charge registration manuals

ㅇ Write off of equipment provided free of charge registration manuals after the expiration of supervision period

If equipment provided free of charge has exceeded the supervision period of customs, business enterprises should promptly apply for deregulation procedures. Application form for deregulation, registration manuals of equipment and other relevant materials should be submitted for deregulation. After the review and approval of customs, proof of deregulation will be issued to the enterprises.