Announcement on the Supervision of Bonded Maintenance in Special Customs Surveillance Zones
(Issue date: December 14, 2015)
The Announcement is issued for the purpose of regulating the management of bonded maintenance activates in special customs surveillance zones (SCSZs).
I. This Announcement shall apply to the following bonded maintenance activities occurring at bonded zones, export processing zones, bonded logistics parks, bonded port areas, free trade zones, Zhuhai-Macau Cross-Border Industrial Zone Zhuhai Park, and Sino-Kazakhstan Khorgos Border Cooperation Center Chinese Area:
(I) Goods with damaged parts, disabled functions or quality defects (hereinafter collectively called “goods to be maintained”) are transported from abroad to SCSZs to be detected and maintained in a bonded way, and then exported.
(II) Goods to be maintained are transported to SCSZs from other places within China to be detected and maintained, and then transported out of SCSZs.
This Announcement shall not apply to the customs supervision of foreign vessels and aircrafts that are declared for entry into China for maintenance as means of transport.
II. Enterprises in SCSZs may carry out the following boned maintenance activities, including:
(I) Maintenance activities allowed by laws, regulations and rules;
(II) Maintenance activities approved to be carried out by the State Council and relevant national agencies;
(III) Maintenance of products (including products manufactured by enterprises in SCSZs and their domestic subsidiaries out of SCSZs) sold by enterprises in SCSZs domestically out of SCSZs.
Unless otherwise permitted by the State Council and relevant national agencies, goods prohibited to be imported or exported cannot be maintained.
III. To carry out bonded maintenance activities, an enterprise shall create an H account (account for export processing enterprises) and an electronic original account for goods to be maintained, goods maintained (including goods failing to be repaired), and materials and parts for maintenance. To create an account for bonded maintenance, an enterprise shall satisfy the following conditions:
(I) It has established management rules and a computer management system satisfying the regulatory requirements of the customs, for the whole-process tracking of maintenance consumption and other information.
(II) It has networked with the customs for data exchange according to the regulatory requirements of the customs.
(III) It is able to conduct special management of goods to be maintained, goods maintained, materials and parts for maintenance, damaged parts replaced in maintenance (hereinafter referred to as “damaged parts”), and the leftovers (hereinafter referred to as “maintenance leftovers”) of materials and parts for maintenance generated in the process of maintenance.
Where the approval of the regional administration is required by any law, regulation or rules, the enterprise shall provide such approval.
IV. Enterprises shall truthfully declare the entry, exit, transfer, storage, and consumption of goods under bonded maintenance to the customs and apply to the customs for corresponding write-off.
V. Goods to be maintained transported to SCSZs from abroad shall be exported after being detected and maintained, or found to be unrepairable. The Recording List of Import Goods and Recording List of Export Goods shall be filled out by enterprises in SCSZs when goods to be maintained enter SCSZs from abroad and are exported. This supervision method shall be “bonded maintenance” (code No. 1371).
VI. The Export Declaration shall be filled out by enterprises in or outside SCSZs when goods to be maintained enter SCSZs from other places within China, and this supervision method shall be “repaired goods” (code No. 1300). Besides, enterprises in SCSZs shall also fill out the Recording List of Import Goods, and this supervision method shall be “bonded maintenance” (code No. 1371).
VII. The Import Declaration shall be filled out by enterprises in or outside SCSZs when goods to be maintained leave SCSZs for other places within China, and this supervision method shall be “repaired goods” (code No. 1300). Information concerning goods maintained and maintenance costs shall be included in the list. The number of maintained goods shall be the number of goods that have left SCSZs after maintenance, and tax on such goods shall be exempted. The number of maintained goods shall be accurate to 0.1, and the tax exemption method shall be “levy according to regulations”. The codes of goods shall be written in the box of “Product Codes”. Tax rate and exchange rate shall be subject to those adopted on the day when goods maintained are declared for leaving SCSZs for other places within China upon the permit of the customs.
Enterprises in SCSZs shall fill out the Recording List of Export Goods, and this supervision method shall be “bonded maintenance” (code No. 1371). The real name of goods maintained shall be provided.
Enterprises shall submit such documents as the maintenance contract (or domestic sales contract with warranty terms), and maintenance invoices to the customs. The duty-paid value of maintenance fee arising from bonded maintenance activities shall be reviewed according to bonded material cost and repair cost. Maintenance fee occurring outside SCSZs may be deducted from the duty-paid value if the fee can be listed independently.
VIII. Where centralized declaration is required when goods to be maintained enter SCSZs from other places within China, and leave SCSZs for other places within China, enterprises shall go through relevant formalities in line with the Interim Measures of the Customs of the People's Republic of China for the Administration of Bonded Port Areas (Decree No. 191 of the General Administration of Customs).
IX. Materials and parts for maintenance shall be managed as bonded goods. Enterprises shall, in accordance with the Regulations on the Filling of Import/Export Declaration and Recording List of Import/Export Goods at Special Customs Surveillance Zones, and Regulations on the Filling of Import/Export Declaration of the Customs of the People’s Republic of China, declare the import, export and transit of materials and parts for maintenance.
十、 对从境外进入区域的待维修货物产生的维修坏件和维修边角料原则上应复运出境，监管方式为“进料边角料复出”（代码0864）或“来料边角料复出”（代码0865）。确实无法复运出境的，可参照《海关总署 环境保护部 商务部 质检总局关于出口加工区边角料、废品、残次品出区处理问题的通知》（署加发〔2009〕172号）办理运至境内（区域外）的相关手续。
X. Damaged parts and maintenance leftovers generated during the maintenance of goods entering SCSZs from abroad shall be, in principle, exported, and the supervision method shall be “export of import maintenance leftovers” (code No. 0864), or “export of supplied maintenance leftovers” (code No. 0865). Damaged parts or maintenance leftovers that cannot be exported may be transported to other places within China in line with the Notice of the General Administration of Customs, Ministry of Environmental Protection, Ministry of Commerce, and General Administration of Quality Supervision Concerning the Treatment of leftovers, Wastes, and Damaged Parts from Export Processing Zones (S. J. F.  No. 172).
Damaged parts and maintenance leftovers generated during the maintenance of goods entering SCSZs from other places within China may be transported to other places within China after being registered in the assistant management system.
Solid damaged parts and maintenance leftovers shall be treated in line with the Administrative Measures for the Import of Solid Waste (Decree No. 12 of the Ministry of Environmental Protection) jointly issued by the Ministry of Environmental Protection, Ministry of Commerce, National Development and Reform Commission, General Administration of Customs, and General Administration of Quality Supervision.
XI. During import and export declaration, enterprises shall fill out the box of “Mode of Transportation” on the Recording List of Import Goods and Recording List of Export Goods with the real modes of transportation. For the declaration of goods from or leaving for other places within China, the box of “Mode of Transportation” on the Import Declaration or Export Declaration and Recording List of Import Goods or Recording List of Export Goods shall be filled out according to the Regulations on the Filling of Import/Export Declaration and Recording List of Import/Export Goods at Special Customs Surveillance Zones.
XII. Where goods to be maintained need to be partly maintained outside SCSZs due to technical reasons, enterprises shall go through relevant formalities in line with Article 28 of the Interim Measures of the Customs of the People's Republic of China for the Administration of Bonded Port Areas (Decree No. 191 of the General Administration of Customs).
XIII. The write-off period of a bonded maintenance account shall not exceed two years.
XIV. In any of the following circumstances, an enterprise is required to correct its behavior without carrying out any new maintenance activity.
(I) The enterprise carry out maintenance activities that violate the regulations specified in “II” and “III” of the Announcement;
(II) The enterprise is investigated by the customs on suspicion of smuggling;
(III) The enterprise violates regulations twice in one year; or
(IV) The enterprise fails to treat goods maintained, goods to be maintained, damaged parts or maintenance leftovers as required within the time limit.
“Time limit” mentioned in “(IV)” shall be determined by the competent customs according to the bonded maintenance contract and actual situation.
An enterprise subject to correction shall only carry out new maintenance activities after its correction results are recognized by the competent customs.