Laws of the People's Republic of China

The General Administration of Customs

Circular of the General Administration of Customs on Releasing the Measures of the Customs of the People's Republic of China for the Administration of Third Place Processing Trade

ShuShui [1999] No.648

September 22, 1999

Guangdong Customs Bureau and all customs bureaus directly under the General Administration of Customs:

In order to implement the Circular of the General Office of the State Council on Transmitting the Comments by the State Economic and Trade Commission and Other Relevant Governmental Agencies on Further Improving the Deposit Account System for Processing Trade (GuoBanFa [1999] No.35), the General Administration of Customs has drawn up the Measures of the Customs of the People's Republic of China for the Administration of Third Place Processing Trade, which, as released hereby, shall be promulgated as Decree No.74 of the General Administration of Customs of the People's Republic of China. Some relevant issues are clarified as follows:

I.

For third party processing trade, the customs authority administers the two parties involved differently. Once there occurs an adjustment of the administrative mode of either party, the competent customs bureau shall, in accordance with the Circular of the General Administration of Customs on Printing and Distributing the Detailed Rules of the Customs of the People's Republic of China for the Implementation of Classified Administration of Enterprises (ShuJian [1999] No. 345), make timely notification to its foreign counterpart on relevant stipulations so that appropriate supervisory measures can be taken.

II.

The competent customs bureau of the processing party should consolidate the follow-up supervision over the filed contract, and shall, within one month calculated from the date of the cancel upon verification and settlement of the contract, inform the competent customs bureau of the processing party of the execution of the contract in the form of a Receipt of the Customs of People's Republic of China Concerning Third Place Processing Trade (hereinafter referred to as the Receipt).

III.

If it observes anything unusual in the course of the execution of the contract, the competent customs bureau of the processing party shall relate the information to the competent customs bureau of the trading party in the form of a Receipt within seven working days calculated from the date of discovery.

IV.

Before transmission of the Application to the Customs of the People's Republic of China for Conducting Third Place Processing Trade (hereinafter referred to as the Application) or the Receipt to the other location through network, the competent customs shall envelop the Application or the Receipt and present it to its counterpart at the third place. After the transmission, the competent Customs shall transmit the relevant content of the Application or the Receipt to its counterpart at the third place through network.

V.

The document ShuShui [1999] No.382 issued on May 25, 1999 by the General Administration of Customs is nullified thereupon.

VI.

The Application to the Customs of the People's Republic of China for Conducting Third Party Processing Trade and the Receipt of the Customs of the People's Republic of China Concerning Processing Trade shall be printed by each individual customs of their own.

The Circular shall be observed and implemented accordingly.