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Glossary: Domestic sale of processing trade

Chinese customs authorities require that bonded materials of processing trade enterprises should be 100% re-exported out of China upon completion of processing. If any processing trade enterprise is unable to comply with the re-export requirement due to special reasons, and the bonded materials or finished products have to be sold in China or used to produce goods for domestic sale, approval has to be sought from the commerce department at the provincial level. By presenting the approvals documents to the Customs and repaying the import duty, the goods can be sold domestically.


Related country: China

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Related term: processing trade




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