In recent years, with the development of China's cultural industry, numerous international artworks have entered the country to engage in bonded exhibition and trading activities. Bonded exhibition and trading refer to business activities where enterprises registered with the customs in special customs control areas transport bonded goods from within the area to outside for display and sale. For bonded exhibition and trading artworks sold domestically, taxes are only required to be paid when declaring their exit from the area. This model allows enterprises to fully leverage bonded exhibition and trading to ease financial burdens. This article will provide an overview of the process for bonded exhibition and trading of artworks.
I. Requirements for Enterprises Engaged in Exhibition and Transaction
1. Complete customs registration within special customs control areas and ensure the enterprise is not categorized as dishonest.
2. Submit details of the exhibition site, including address, size, geographical location map, and booth design.
3. Submit relevant documents such as exhibition contracts, agreements, and invitation letters.
4. Provide guarantee certification materials, such as cash deposits, bank guarantees, and similar documentation.
5. Submit an itemized list of goods, including product names, specifications, models, prices, and other relevant details.
6. Maintain detailed records of the entry, exit, storage, and sales of bonded exhibition goods through account book management.
7. Submit approval documents or certifications issued by the cultural management authority.
II. Venues for Bonded Exhibition and Transactions
1. It must be within a special customs control area or a supervised bonded place.
2. To conduct bonded exhibition and transactions outside the aforementioned locations, fixed business premises are required, along with compliance with customs supervision requirements.
III. Bonded Exhibition and Transaction Procedures
(I) Import into the special customs control areas.
For artworks entering special customs control areas from overseas, enterprises must declare an entry filing list to the customs, noting "bonded exhibition" in the remarks section. Artworks are marked as "uniqueness" upon entry into the area.
(II) Exhibition outside the special customs control areas.
1. Prior to conducting bonded exhibition and trading activities, enterprises must submit an application form to customs, specifying information such as exhibition goods, guarantee numbers, exhibition locations, and exhibit duration.
2. Operating enterprises may only transport artwork out of the designated special area for exhibition purposes after providing a guarantee to customs.
3. Upon exit from the area, customs will conduct marking and verification of the "uniqueness" of the artwork as required.
4. During the exhibition period, the exhibition enterprise is required to maintain detailed account book management for the artworks, thoroughly recording information on goods' entry, exit, storage, and sales during this period. The enterprise must also submit monthly reports to customs, including details on artwork sales, inventory, and storage locations.
5. Any changes to the exhibition location during the exhibition period must be approved by customs.
(III) Return to the special customs control areas.
1. Upon the expiration of the exhibition period, enterprises may either return the artworks to the special customs control areas or complete the necessary import customs clearance procedures, after which the guarantee amount will be refunded.
2. Artworks must be returned to the special customs control areas within 6 months from the date of leaving the area. If an extension is required, the enterprise shall submit a written application for extension to the customs within 15 days before the expiration of the extension. The extension shall not exceed 3 times at most, and each extension period shall not exceed 6 months.
3. When returning to the area, customs will mark and verify the "uniqueness" of the artwork as needed.
(Chen Naibin)
Disclaimer：The above content is translated from Chinese version of China Inspection and Quarantine Times. The China Inspection and Quarantine Times version shall prevail.