15 March 2018
Customs Duty Deposits for the Processing Trade Superseded by Formal Guarantees
In the case of the processing trade, customs duty deposits are to be replaced by formal customs service guarantees in line with a recent policy document issued by the General Administration of Customs (GAC).
Among the more specific changes to the customs process are the following:
- Following the replacement of customs duty deposits by customs services guarantees, all matters relating to the payment and amount of deposits into the designated bank accounts will be handled in accordance with Announcement No. 63 , as issued by the Ministry of Commerce and the GAC.
- While customs services guarantees may take the form of either collateral or a letter of guarantee, a consistent form of guarantee must be used in each instance
- When completing customs services guarantee procedures via a letter of guarantee, the enterprise in question must supply the customs authority with the original letter of guarantee as provided by a bank or other financial institution
- When completing customs services guarantee procedures in the form of collateral, an enterprise must pay the collateral (in RMB) into the customs-designated custody account in line with the payment advice issued by the customs office
For further details, please visit the following links: