Promulgation Authorities:  General Administration of Customs

Promulgation Date:  2022.01.01

Effective Date:  2022.04.01

Validity Status:  valid

Document Number:  Decree No. 256 of the General Administration of Customs (“GAC")

Administrative Measures of the Customs of the People's Republic of China on Comprehensive Bonded Zones

Administrative Measures of the Customs of the People's Republic of China on Comprehensive Bonded Zones

Decree No. 256 of the General Administration of Customs ("GAC")

(Promulgated on 1 January 2022 under GAC Decree No. 256, and effective 1 April 2022)

Chapter 1 General Principles

Article 1  These Measures are enacted pursuant to the Customs Law of the People's Republic of China, the Law of the People's Republic of China on Import and Export Commodity Inspection, the Law of the People's Republic of China on Entry-exit Quarantine of Animals and Plants, the Border Health Quarantine Law of the People's Republic of China, the Food Safety Law of the People's Republic of China and related laws, administrative regulations and the relevant provisions of the State for the purposes of standardising Customs administration of comprehensive bonded zones, and promoting high-level opening up and high-quality development of comprehensive bonded zones.   

Article 2  The Customs shall conduct supervision and administration of transportation vehicles, goods and their external packaging, containers and articles entering and exiting comprehensive bonded zones, as well as enterprises in comprehensive bonded zones (hereinafter referred to as the "bonded zones") pursuant to these Measures.   

Article 3  Comprehensive bonded zones are under closed administration.   No one may reside in a bonded zone except for security personnel.

Article 4  The infrastructure and regulatory facilities of a comprehensive bonded zone shall conform to the standards for establishment of infrastructure and regulatory facilities of comprehensive bonded zones and shall pass the acceptance inspection by the Customs in conjunction with the relevant authorities.   

Article 5  Enterprises in a bonded zone may carry out the following businesses pursuant to the law:   (I) R&D, processing, manufacturing and remanufacturing;

(II) testing and repair;

(III) storage of goods;

(IV) Distribution of logistics;

(V) finance lease;

(VI) cross-border e-commerce;

(VII) commodity exhibition;

(VIII) international entrepot trade;

(IX) international transshipment;

(X) port operations;

(XI) bonded delivery of futures; and

(XII) other businesses that may be carried out in a bonded zone pursuant to the provisions of the State.

Article 6  The Customs shall exercise computer networking management over enterprises in bonded zones and improve the informatization and intelligent management level of bonded zones.   

Chapter 2 Management of Inbound and Outbound Goods between Bonded Zones and Overseas

Article 7  Unless otherwise stipulated by laws and regulations, goods and articles prohibited by the State from importation and exportation shall not be imported or exported between a comprehensive bonded zone and overseas.   

Article 8  Inbound and outbound goods between a bonded zone and overseas shall not be subject to tariff quota and licensing administration, unless otherwise stipulated by laws and regulations, or international treaties and agreements concluded or acceded to by the State.   

Article 9  For inbound and outbound goods between a bonded zone and overseas, the consignee and consignor or their agents shall declare to the Customs truthfully, complete the filing list of inbound and outbound goods pursuant to the provisions of the Customs and complete the relevant formalities.   

Article 10  Overseas goods and their external packaging and containers entering a bonded zone shall be quarantined by the Customs at the port of entry pursuant to the law. Due to restricted port conditions etc., the Customs may conduct quarantine at a place (site) in a bonded zone which satisfy the criteria.   The Customs shall conduct quarantine pursuant to the law for goods and their external packaging and containers shipped overseas from a bonded zone.

The Customs shall conduct quarantine pursuant to the relevant provisions on inbound and outbound transportation vehicles between a bonded zone and overseas pursuant to the relevant provisions.

Article 11    Goods entering bonded zones from overseas shall be treated as bonded goods, except for the circumstances stipulated in Article 12 and Article 14 hereof.

Article 12    Unless otherwise stipulated by laws and regulations, the following goods entering a bonded zone from overseas will be exempted from import duties and import-linked taxes by the Customs:

(I) Machinery and equipment required for production infrastructure construction projects within the zone, as well as capital construction materials for construction of production workshops and storage facilities;

(II) Machinery, equipment, moulds and spare parts for maintenance that are necessary for enterprises in the zone to carry out businesses listed in Article 5 hereof; and

(III) Reasonable quantity of office supplies to be used by administrative organs and enterprises in the zone.

From the date of approval of the State Council for the establishment of a bonded zone, the provisions of the preceding paragraph shall apply to the self-use machinery and equipment of enterprises in the bonded zone entering the bonded zone from overseas.

Article 13    The period of supervision over imports entitled to duty reduction or exemption shall apply mutatis mutandis with respect to the period of supervision over goods listed in Article 12 hereof, and the supervision will be automatically lifted upon expiry of such period; where an enterprise applies for lifting of supervision in advance before expiry of the period of supervision , the relevant provisions on retrospective payment of taxes for imports entitled to duty reduction or exemption shall apply mutatis mutandis; where the goods are subject to licensing administration, the relevant licence is required.

Article 14    The Customs shall lawfully levy import duties and import-linked taxes on the means of transport and consumer goods for daily use brought into the bonded zones from abroad for the self-use of the enterprises and administrative agencies in the bonded zones.

Article 15    Unless otherwise stipulated by laws and regulations, goods shipped overseas from bonded zones shall be exempted from export duties.

Chapter 3 Administration of Inbound and Outbound Goods between Bonded Zones and Areas outside Bonded Zones

Article 16    For inbound and outbound goods between bonded zones and other parts of the People's Republic of China (hereinafter referred to as the "areas outside the bonded zones"), enterprises in the bonded zones or consignors and consignees outside the bonded zones shall complete the relevant formalities with the Customs as required.

Where the goods are subject to tariff quota or licence administration, the enterprises in the bonded zones or consignors and consignees outside the bonded zones shall obtain the tariff quota or licence; the Customs shall verify the tariff quota, and conduct system automatic comparison and verification for the electronic data of the licence.

Article 17    Unless otherwise stipulated by laws and regulations, the Customs will not quarantine inbound and outbound goods and their external packaging and containers between bonded zones and areas outside the bonded zones.

Article 18    For inbound and outbound goods between bonded zones and areas outside the bonded zones, enterprises in the bonded zones or consignors and consignees outside the bonded zones shall pay Customs duties and import-linked taxes  pursuant to the law based on the actual conditions of the goods at the time of entry into or exit from the bonded zones.

When the goods processed and manufactured by an enterprise in a bonded zone are sold in China outside the bonded zone, the enterprise in the bonded zone or the consignors and consignees outside the bonded zones may opt to pay Customs duties based on the corresponding imported materials, and pay Customs duties and deferred tax interest retrospectively; import-linked taxes shall be paid pursuant to the provisions based on the actual conditions of the goods at the time of exit from the bonded zone.

Article 19    With respect to the goods transported via a bonded zone to an area outside that falls under a preferential trade agreement, the conventional tax rate or preferential tax rate may apply if such goods comply with the relevant administrative provisions on place of origin.

Article 20    Goods which enter a bonded zone by way of export declaration shall be bonded; To be specific, machinery and equipment procured by an enterprise in a bonded zone from outside the bonded zone shall be subject to administration according mutatis mutandis to the period of supervision for imports entitled to tax reduction or exemption, and supervision will be automatically lifted upon expiry of the period of supervision, and the enterprise shall be exempted from submission of permit; where the enterprise applies for lifting of supervision in advance before the period of supervision expires, the relevant formalities shall be completed according mutatis mutandis to the relevant provisions on retrospective tax payment for imports entitled to tax reduction or exemption, and the enterprise shall be exempted from submission of permit.

Export tax refund for goods stipulated in the preceding paragraph shall be subject to the relevant provisions of the State.

Article 21    Where the trimmings, defective products and by-products generated from bonded materials used in the processing and manufacturing process by an enterprise in a bonded zones, as well as packaging materials generated in the process of processing and manufacturing, storage, transportation etc., are transported to areas outside the bonded zone for sale, the enterprise in the bonded zone shall pay taxes based on the actual conditions of the goods at the time of exit from the bonded zone; if defective products and by-products are subject to tariff quota or licence administration, the enterprise in the bonded zone or the consignors and consignees outside the bonded zone shall obtain tariff quota or licence; the Customs shall verify the tariff quota and conduct system automatic comparison and verification for the electronic data of the licence.

Article 22    Solid waste generated by enterprises in a bonded zone and not transported overseas shall be managed pursuant to the relevant provisions on domestic solid waste. Where there is a need to transport such waste to areas outside the bonded zone for storage, utilisation or disposal, formalities for exiting the bonded zone shall be completed with the Customs pursuant to the provisions.

Article 23    Where an enterprise in a bonded zone destroys goods pursuant to the law, the relevant formalities shall be completed, and the destruction and disposal expenses shall be borne by the enterprise itself. Article 22 of these Measures shall apply when the destroyed solid waste is transported out of the bonded zone.

Article 24    Enterprises in a bonded zone may complete consolidated declaration formalities pursuant to the provisions of the Customs.

Unless otherwise stipulated by the GAC, enterprises in a bonded zone shall complete consolidated declaration formalities for goods in each quarter before the 15th day of the month following the end of the said quarter, provided that the formalities shall not be later than the cut-off date for verification and cancellation of accounts, and shall not be completed across years.

The tax rate and exchange rate prevailing on the date of acceptance of consolidated declaration by the Customs shall apply to consolidated declaration.

Article 25    Goods inbound and outbound between a bonded zone and another bonded zone, any special Customs supervision areas or a bonded supervision site shall be bonded.

Goods circulated between a bonded zone and another bonded zone, any special Customs supervision areas or a bonded supervision site shall not be subject to Customs duties and import-linked taxes.

Chapter 4 Administration of Goods in Bonded Zones

Article 26    Goods in a bonded zone may be circulated freely. For transfer and movement of goods between enterprises in a bonded zone, both enterprises shall promptly submit electronic data information such as description, quantity and amount of the goods to the Customs.

Article 27    Enterprises in a bonded zone may use duty-free equipment within the period of supervision to carry out processing business consigned by enterprises outside the bonded zone.

An enterprise in a bonded zone engaging in consigned processing business shall set up a dedicated electronic account book for consigned processing. Where bonded materials are used for consigned processing, the enterprise in the bonded zone shall file record with the Customs.

Solid waste generated from consigned processing shall be subject to the provisions of Article 22 hereof when it is transported out of the bonded zone.

Article 28    An enterprise in a bonded zone which transports self-use machinery, equipment and their parts, moulds or office supplies to an area outside the bond zone for testing and maintenance pursuant to the provisions of the Customs shall not use them for processing, production and use in the area outside the bond zone during the testing and maintenance period and shall transport them back to the bonded zone within 60 days from the date of transport out. Where the goods cannot be transported back as scheduled for some reason, the enterprise in the bonded zone shall apply to the Customs in writing within seven days before expiry of the time limit for extension, and the extension period shall not exceed 30 days.

Where the goods stipulated in the preceding paragraph cannot be tested, maintained and transported back to the bonded zone within the aforesaid stipulated time limit due to special circumstances, upon approval by the Customs, they may be transported back to the bonded zone within the term of the testing and maintenance contract.

Where parts and components are replaced, the original parts and components shall also be transported back to the bonded zone; where there is a genuine need to dispose of such parts and components in an area outside the bond zone, the Customs shall levy tax pursuant to the actual conditions of the original parts and components; where there is a tax refund for domestically-manufactured parts and components replaced in an area outside the bonded zone, the enterprise shall complete the formalities pursuant to the relevant provisions.

Article 29    Where an enterprise in a bonded zone transports moulds, raw materials, semi-finished products etc. to an area outside the bonded zone for outsourced processing pursuant to the provisions of the Customs, the outsourced processing period shall not exceed the validity period of the contract, and the processed goods shall be transported back to the bonded zone by the stipulated deadline.

Where the trimmings, defective products and by-products generated from the outsourced processing are not transported back to the bonded zone, the Customs shall levy tax pursuant to the actual conditions of the goods; if the defective products and by-products are subject to tariff quota and licence administration, the enterprise in the bonded zone or the consignee/ consignor outside the bonded zone shall obtain the tariff quota and licence; the Customs shall verify the relevant tariff quota and carry out system automatic comparison and verification for the electronic data of the licence.

Article 30    Where goods in a bonded zone are damaged or lost due to force majeure, the enterprise in the bonded zone shall promptly report to the Customs. Upon verification by the Customs, the enterprise in the bonded zone may complete the formalities pursuant to the following provisions:

(I) where the goods are lost, or where the goods are not lost but have completely lost use value, verification and tax exemption formalities shall be completed;

(II) where the goods brought into a bonded zone from overseas or from an area outside the bonded zone for which export tax refund formalities have been completed are damaged or have lost part of use value, formalities of domestic sale or return shipment out of the bonded zone shall be completed; and

(III) where the goods brought into a bonded zone from an area outside the bonded zone  for which export tax refund formalities have not been completed yet are damaged or have lost part of use value, and there is a need to return the goods to the export enterprise for replacement, return shipment formalities shall be completed.

Article 31    Where goods in a bonded zone are damaged or lost due to non- force majeure factors such as improper care etc., the enterprise in the bonded zone shall promptly report to the Customs and provide explanation. Upon verification by the Customs, the enterprise in the bonded zone may complete the formalities pursuant to the following provisions:

(I) For overseas goods entering the bonded zone, the relevant formalities shall be gone through in accordance with the provisions on general trade import goods, and duties and import-linked taxes shall be paid based on the dutiable value assessed by the Customs before the goods were damaged or lost and the tax rate and exchange rate applicable on the date when the goods are damaged or lost; or

(II) goods brought from an area outside the bonded zone into the bonded zone shall repay the relevant domestic taxes refunded due to exportation; export tariffs paid shall not be refunded.

Article 32    Where an enterprise in a bonded zone applies to abandon goods, upon approval by the Customs and the relevant competent authorities, the Customs shall sell off the goods pursuant to the law, and the proceeds from the sale shall be dealt with pursuant to the relevant provisions of the State, except where the laws and regulations stipulate that abandonment is prohibited.

Article 33    Unless otherwise stipulated by laws and regulations, there is no storage period for goods in a bonded zone.

Chapter 5 Administration of Enterprises in a Bonded Zone

Article 34    Enterprises in a bonded zone and their branches shall obtain market entity status, and complete registration or filing formalities with the Customs pursuant to the law.

Enterprises engaging in food manufacturing in a bonded zone shall obtain a domestic manufacturing permit pursuant to the law.

Article 35    Enterprises in a bonded zone shall standardise financial management pursuant to the provisions of laws and regulations and set up Customs electronic account books pursuant to the provisions of the Customs. Filing, change and cancellation of electronic account books shall be carried out pursuant to the relevant provisions of the Customs.

Article 36    The Customs shall implement an inspection and verification system for enterprises in a bonded zone.

Enterprises in a bonded zone shall cooperate in Customs inspection and verification, and provide the relevant accounts books, documents and other relevant materials and electronic data truthfully.

Article 37    Enterprises in a bonded zone engaging in guarantee businesses which involve Customs matters shall comply with the relevant provisions on guarantee for Customs matters.

Chapter 6 Supplemental Provisions

Article 38    Inspection of goods entering and exiting a bonded zone shall be conducted pursuant to the relevant provisions.

Article 39    Transportation vehicles and personnel entering and exiting between a bonded zone and an area outside the bonded zone shall enter and exit the bonded zone through designated channels, and the Customs shall conduct inspection as needed.

Service personnel of transportation vehicles entering and exiting a bonded zone with personal items brought into and out of a bonded zone shall be subject to Customs supervision pursuant to the relevant provisions on luggage and items of inbound and outbound tourists.

Article 40    Customs supervision and administration implemented pursuant to the law in a bonded zone shall not affect performance of the corresponding duties by local governments and other authorities pursuant to the law.

Article 41    Unless otherwise stipulated by laws and regulations, the Customs shall conduct import and export trade statistics for goods entering and exiting between overseas and a bonded zone; conduct Customs single item statistics and Customs business statistics for goods entering and exiting between an area outside a bonded zone and the bonded zone as required by administration; and conduct Customs business statistics for Customs supervision and administration activities and internal management matters relating to a bonded zone.

Article 42    The pilot scheme for general VAT taxpayer status in a bonded zone shall be subject to the relevant provisions of the pilot scheme policies for general VAT taxpayer status.

Article 43    Goods which enter a bonded zone from an area outside the bonded zone which do not involve export tariff or licensing, do not require tax refund and are not included in Customs statistics shall be subject to administration of convenient entry and exit of the bonded zone by the Customs.

Article 44    Any violation of the provisions of these Measures shall be punished by the Customs pursuant to the provisions of the relevant laws and regulations; where the case constitutes a criminal offence, criminal liability shall be pursued in accordance with the law.

Article 45    The requirements for establishment examination and approval, construction acceptance upon inspection, supervision and administration of a bonded zone shall comply with the relevant provisions of the State.

Article 46    The GAC shall be responsible for interpretation of these Measures.

Article 47    These Measures shall be implemented with effect from 1 April 2022, repealing simultaneously the Provisional Measures of the Customs of the People's Republic of China on Administration of Bonded Ports promulgated under GAC Decree No. 164 on 3 September 2007 and revised under GAC Decree No. 191 on 15 March 2010, GAC Decree No. 235 on 20 December 2017, GAC Decree No. 240 on 29 May 2018 and GAC Decree No. 243 on 23 November 2018, and the Administrative Measures of the Customs of the People's Republic of China on Bonded Logistics Parks promulgated under GAC Decree No. 134 on 28 November 2005 and revised under GAC Decree No. 190 on 15 March 2010, GAC Decree No. 235 on 20 December 2017, GAC Decree No. 240 on 29 May 2018 and GAC Decree No. 243 on 23 November 2018.