I. Definition
Bonded maintenance refers to the business activity in which enterprises, operating outside customs special supervision zones, import goods or transportation tools from overseas that have issues such as damaged components, functional failures, or quality defects. These items are inspected and repaired domestically and then re-exported.
II. Conditions for Enterprises to Conduct Bonded Maintenance Operations
1. The enterprise's credit status, as determined by customs, must not be classified as "untrustworthy".
2. The enterprise must possess the necessary facilities and equipment to manage repaired goods, goods awaiting repair, irreparable goods, repair materials, old or defective parts replaced, and scrap materials generated during the repair process.
3. The enterprise must establish management systems and computer management systems that comply with customs supervision requirements. These systems must enable full tracking of repair-related information and ensure proper declaration as required by customs.
4. The enterprise must meet other conditions necessary for customs supervision.
III. Types of Bonded Maintenance Operations
1. Operations permitted by laws, administrative regulations, State Council provisions, and departmental rules.
2. Operations approved by the State Council and relevant national authorities.
IV. Customs Supervision of Bonded Maintenance Operations
1. Customs will establish dedicated bonded maintenance ledgers (or manuals) for qualified enterprises. These ledgers will include electronic records of goods awaiting repair, repaired goods, and irreparable goods. For repair materials imported under bonded status, the ledgers will also include electronic records of such materials. Goods recorded in these ledgers are not subject to the prohibited goods list for processing trade.
2. The ledger cancellation cycle is determined based on customs supervision needs and the enterprise's production realities, with a maximum period of one year. For bonded maintenance enterprises involved in large-scale equipment manufacturing, such as aircraft or ships, the ledger cancellation cycle may be adjusted based on the actual contract validity period, subject to approval by the supervising customs authority.
3. Enterprises conducting bonded maintenance operations must conduct an annual inventory check and accurately declare information on old or defective parts replaced during the ledger cancellation period (including name, specifications, model, and quantity). Enterprises importing repair materials under bonded status must also declare information on scrap materials generated during the repair process (including name, specifications, model, and quantity).
4. The supervising customs authority will conduct batch supervision or random inspections of enterprises engaged in bonded maintenance. Customs will perform risk analysis on the import, export, transfer, storage, and consumption data of bonded maintenance operations and conduct on-site inspections based on enterprise inventory checks. The frequency of on-site inspections will be determined by factors such as the enterprise's credit status, business operations, and risk level as assessed by customs.
V. Customs Clearance for Bonded Maintenance Goods
1. When declaring bonded maintenance goods for import or export, the "product name (to be repaired)" for materials and the "product name (repaired)" or "product name (irreparable)" for finished goods should be declared under the "bonded maintenance (1371)" customs supervision mode.
2. Repair materials imported under bonded status should be declared under the corresponding "processing with imported materials" or "processing with supplied materials" customs supervision mode. For re-exported materials, the corresponding "re-export of imported materials" or "re-export of supplied materials" mode should be used. For materials transferred for further use, the corresponding "carry-over of imported materials" or "carry-over of supplied materials" mode should be applied.
3. Old or defective parts replaced during repairs, as well as scrap materials generated during the repair process, should be declared under the actual inspection status using the "re-export of scrap from imported materials" or "re-export of scrap from supplied materials" mode. These items should be re-exported under the corresponding material item number. If no corresponding material item number exists or if repair materials were imported under non-bonded status, the items should be re-exported under the corresponding item number of the goods awaiting repair.
4. Goods awaiting repair, repaired goods, irreparable goods, scrap materials generated during repairs, and replaced old or defective parts should, in principle, all be re-exported. If re-export is not possible, these items must not be sold domestically. Enterprises must handle such items in accordance with the Announcement of the General Administration of Customs on Issues Concerning the Destruction and Disposal of Processing Trade Goods (CACC Announcement No. 33 [2014]).
5. Remaining repair materials imported under bonded status should be handled in accordance with the Measures of the Customs of the People's Republic of China for the Administration of Leftover Bits and Pieces, Surplus Materials and Parts, Defective Products, By-products and Disaster-hit Bonded Goods in Processing Trade.
Disclaimer：The above content is translated from Chinese version of China Inspection and Quarantine Times. The China Inspection and Quarantine Times version shall prevail.