What is a bonded factory?
A bonded factory is a bonded area licensed by the person in charge of the customs to manufacture processing of foreign and domestic goods as raw materials. The bonded factory system is one of the main export support measures of the customs rebate system. Foreign goods brought into a bonded factory, manufactured and processed while retaining customs duties. Therefore, exports can be promoted by reducing the financial burden of enterprises and simplifying customs clearance procedures to improve the international competitiveness of export commodities.
Customs clearance procedures for bonded factory goods
1. Goods shipped to bonded factories
1.1 Import from abroad
When a bonded factory imports raw materials, it should prepare a raw material import application (B6) and go through customs declaration procedures in accordance with the procedures applicable to ordinary goods. If the customs deems it necessary, it may send customs personnel to the location of the bonded factory to inspect the imported raw materials.
1.2 Import from bonded area
1.2.1 For the bonded goods sold by enterprises in export processing zones, science and technology parks or other bonded factories to the bonded factories, the buyer and the seller shall jointly issue a declaration with necessary documents (B2, invoice, packing list) to declare to the customs goods. They can apply to customs on a monthly basis for permission to declare.
1.2.2 For the goods supplied by the bonded warehouse to the bonded factory, the owner or the manifest holder shall prepare the necessary documents (D7) to declare the goods to the customs, and the warehouse operator and the customs supervisor can confirm the mark and quantity according to the customs declaration or bill of lading After that, it will be shipped from the warehouse.
1.2.3 For the goods sold from the self-provided bonded warehouse to the bonded factory, the buyer and the seller shall jointly prepare a customs declaration form (D7), attaching the documents required for the goods to be declared at the customs. Only after confirming the identification and quantity with the customs clearance or bill of lading, the goods can be shipped from the warehouse. They can apply to customs on a monthly basis for permission to declare.
1.2.4 For the goods provided by the logistics center to the bonded factory, the factory and the center shall jointly prepare a declaration form (D7) and attach the necessary documents, and the center shall declare the goods to the customs electronically. After customs clearance, the goods can be delivered. They can apply to customs on a monthly basis for permission to declare.
1.3 Imports from taxable areas
The processing raw materials sold by domestic suppliers to bonded factories need to be deducted or refunded for import duties and taxes. When the raw materials enter the bonded factory, the buyer and seller should prepare and sign the application form for import and export of raw materials (B1) together, together with the invoice, packing Form, etc., and report to the competent customs for approval. Raw materials are allowed to enter the factory and be recorded. The competent customs shall, within 20 days from the date of approving the application, approve and issue a duplicate application to domestic suppliers as export goods as evidence for applying for tax refund and tax credit.
2 .Goods shipped from bonded factories
2.1 Courtiers bound for abroad
When a bonded factory exports products, it should prepare a product export application form (B9), and indicate the page number and reference number of the relevant "Detailed Table of Raw Material Usage per Unit" in it. "With the approval of the supervisory customs, (when the customs at the export port deems it necessary, the bonded factory may be required to provide a copy of the approved list of raw material usage per unit product") or the reference number of the relevant application submitted or received to the supervisory customs, if the annex Awaiting approval and filing with customs at the port of export for customs clearance in accordance with the procedures applicable to the export of general goods.
2.2 When the bonded goods are sold to enterprises in science and technology parks or export enterprises in export processing zones or other bonded factories for further processing and export, the bonded factory that sells the goods and the buyer shall jointly prepare an application (B2) for the import and export of such bonded goods, together with Invoices, packing lists, approval documents issued by the competent department of the bonded area and other related documents shall be filed with the supervising customs or the local customs branch for customs clearance at the seller's office.
2.3 Driving to the taxable area
2.3.1 For further processing and export to export processing plants eligible for credit recording of import duties and taxes payable:
The buyer and the seller should jointly prepare an export/import application (G2) for the deep-processed products processed and sold in the bonded factory, export to the export processing factory that meets the taxable amount for record, and file with the relevant documents such as invoices, packing lists, etc., at the bonded factory. Before leaving the factory, go through import duties, credit purchase tax and release procedures with the supervision customs. Bonded factories can submit monthly reports. Import duties and taxes on credit purchases for the above-mentioned export processing plants shall be handled in accordance with the "Administrative Measures for Import Duties and Tax Credits or Refunds of Raw Materials Used in Exported Products",
2.3.2 For products sold to domestic companies:
In principle, the products of bonded factories are exported. If domestic sales are required, an application shall be made to the competent customs for approval. If the products processed by the bonded factory are approved to be sold domestically, the bonded factory alone or jointly with the buyer prepares an application for "import of foreign goods" (G2); and when the above application is submitted, the customs supervision will supplement and verify the import tariff according to the form and state of the product when it leaves the factory. The product may not be released until the factory.
Enterprises purchasing the products for domestic sale may apply to the supervisory customs to choose one of the following methods to calculate and collect the import tariffs of the products. Once selected, they cannot be changed within one year, but more than 50% of the materials used for assembly tile-shaped intermediate products are manufactured for domestic sales. product, the import duty of the product shall be levied at the rate applicable to the dutiable value of the product.
