An Overview of the Supervision Model for the Processing Trade of Business Groups

 

 

The supervision model for processing trade of business groups is an important measure implemented by the General Administration of Customs to further promote the reform of "delegating power, streamlining administration and optimizing government services", further comply with the development needs of processing trade enterprises, and activate the vitality of market entities. This model meets the group operation needs of processing trade business groups, allows the circulation of production factors such as materials and equipment within the group, further streamlines business procedures, effectively revitalizes production resources, and helps enterprises reduce burdens and increase efficiency.

I. Definitions

The supervision mode for processing trade of enterprise groups refers to the supervision model for the processing trade implemented by the customs, aiming at implementing the overall supervision of the business groups with the "enterprise groups" as the unit, the information system as the carrier, and the actual business needs of the business groups as guide.

A leading enterprise refers to the enterprise that authorized by member enterprises to take the lead in applying to the customs for the application of the appropriate supervision model for the processing trade of the business group. The leading enterprise shall be familiar with the internal operation and management model of the business group, understand the situation of the member enterprises, and coordinate the member enterprises to carry out relevant business.

Member enterprises refer to the enterprises in the same group that authorize leading enterprises to apply for the supervision model for the processing trade of business groups.

The supervision model for processing trade of business groups is applicable to the processing trade groups operated in a group manner. Enterprises within the group can set up manuals (account books) respectively to carry out processing trade without changing the original development model of processing trade, and at the same time enjoy the facilitation measures of the supervision model for processing trade of business groups. For a business group with a high degree of collectivization, one enterprise can set up a manual (account book), and one enterprise can coordinate the import and export business activities of processing trade goods within the group, and flexibly allocate and use the production capacity of enterprises within the group.

II. Policy Incentives

(I) Bonded materials for processing trade

Such materials may be transferred and utilized within the group by means of surplus material carry-over or through deep processing transfers.

(II) Processing trade goods may be stored independently at locations filed with Customs by enterprises within the group.

(III) Bonded materials meeting the requirements of swap supervision can be swapped or disposed of by enterprises within the group according to their production.

(IV) Enterprises within the group will no longer go through the filing procedures with the customs for the outsourcing processing business, and no guarantee will be provided to the customs if all processes are outsourced for processing.

(V) For the non-priced equipment imported by the enterprise, which is still in the supervision period, carrying forward procedures can be handled for equipment to allow it to be redeployed for use among the enterprises within the group.

III. Application Requirements

(I) The customs credit rating of the leading enterprise is an advanced certified enterprise, and the customs credit rating of the member enterprises is not a dishonest enterprise;

(II) Enterprises in the fields of information technology, artificial intelligence, biomedicine, new energy, new materials, and major equipment manufacturing that are not listed as dishonest enterprises may act as leading enterprises.

(III) The enterprise has standardized internal management and a complete information system. With transparent and clear logistics and data flow of processing trade goods and complete logical chain, the material consumption can be traced, meeting the requirements of customs supervision;

(IV) It does not involve agricultural products with tariff quotas, crude oil, copper ore and its concentrate, satellite TV receiving facilities, raw hides and other processing trade commodities having specific requirements for qualification or quantity of processing trade.

IV. Handling Procedures

(I) In accordance with the requirements set by the General Administration of Customs, the leading enterprise shall apply to the competent customs office in the place where the leading enterprise is located for handling and submit the following materials:

1. Filing Form of the Supervision Model for the Processing Trade of Business Groups;

2. The power of attorney signed and sealed by the legal representatives of all member enterprises;

3. Shareholding certificate, capital contribution certificate or other supporting materials of member enterprises.

(II) If the customs agrees to implement the supervision model for the processing trade of business groups, the enterprise shall go through the procedures for the creation of processing trade manual (account book) with the competent customs according to the current relevant provisions of processing trade through the Filing Form of the Supervision Model for the Processing Trade of Business Groups. "Business Group" shall be indicated in the remarks column of the processing trade manual (account book), and the full name and customs code of the leading enterprise shall also be indicated. The processing trade manual (account book) can be created by the business group according to its own operation needs or created by an enterprise within the group on a uniform basis.

(III) When new member enterprises are added, the leading enterprise should promptly complete the change procedures with the local competent customs office.

Upon the confirmation of the leading enterprise and the involved member enterprises, the relevant member enterprises can apply to withdraw from the supervision model for the processing trade of the business groups; Upon confirmation by the leading enterprise and all member enterprises, the business group may apply for withdrawal from the supervision model for the processing trade of business groups.

V. Disqualification

Member enterprises having the following circumstances may have their leading enterprise or member enterprise's qualification been canceled by the customs:

(I) Member enterprises fail to meet the requirements for joining the processing trade supervision of business groups.

(II) Member enterprises fail to handle the customs procedures such as the circulation, storage and outsourcing processing of bonded goods as required, or fail to keep relevant documents and data as required.

 

 

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Disclaimer：The above content is translated from Chinese version of this website. The Chinese version shall prevail.