In order to implement the "Several Opinions of the State Council on Promoting the Innovative Development of Processing Trade" (State Council [2016] No. 4) and comprehensively deepen the reform of customs supervision for processing trade and bonded operations, streamline administration, delegate powers, guide enterprises to manage themselves autonomously, unleash enterprise vitality, and enhance their endogenous capabilities, after a one-year pilot program during which relevant enterprises actively cooperated and achieved preliminary results, the General Administration of Customs has decided to comprehensively promote the reform of the "Processing Trade Supervision Mode with Enterprises as Units" (hereinafter referred to as the new supervision mode). The reform of the new supervision mode is a crucial measure for the customs to deepen the reform of processing trade supervision, support the development of processing trade enterprises, enhance their overall competitiveness, and provide strong support for the development of productive services related to processing trade. It is also an important aspect of promoting the innovative development of processing trade. The relevant details are hereby announced as follows:
　　I. Scope of Reform Implementation
　　(I)Enterprises implementing the new supervision mode reform must be production-oriented enterprises engaged in processing trade business under their own name, and they must meet one of the following conditions:
　　1.Customs credit rating is at the level of General Certification or above
　　2.Customs credit rating is at the level of General Credit Enterprise, and the internal processing trade goods flow and data flow are transparent and clear, the logical chain is complete, the consumption of materials is traceable, and it meets customs supervision requirements.
　　(II)The business scope of the new supervision mode includes: establishing (changing) account books, import and export, outward processing, deep processing offset, domestic sales, residual material offset, declaration and verification, and after-sales maintenance for the enterprise or the group.
　　II. Main Contents
　　(I) Enterprises implementing the new supervision mode shall conduct relevant business in the following ways:
　　(1)Establishment of Account Books: Enterprises can choose to establish account books based on factors such as industry characteristics, production scale, and management level, using material numbers or item numbers. The maximum import quantity in the account book is the production capacity as stated in the "Proof of Business Operations and Production Capacity of Processing Trade Enterprises," i.e., the corresponding amount of imported materials.
　　(2)Verification Cycle: Enterprises can autonomously choose a reasonable verification cycle based on the production cycle and determine the declaration stage for unit consumption according to existing regulations, autonomously selecting the declaration time for unit consumption.
　　(3)Outsourcing Processing: When enterprises engage in outsourcing processing, they are no longer required to submit shipping and receiving lists. Relevant documents should be kept and records retained for future reference.
　　(4)Concentrated Domestic Sales: Enterprises should, before the 15th day of each month, complete the tax procedures for bonded goods sold domestically in the previous month, provided that tax guarantees are provided in accordance with the law, and the procedures should not cross calendar years.
　　(5)Offset for Deep Processing: When handling procedures for the offset of deep processing, enterprises should centrally declare the offset situation for the previous month before the end of each month. They are no longer required to submit shipping and receiving records. Relevant documents should be kept and records retained for future reference.
　　(6)Offset for Residual Materials: Before declaration, enterprises should dispose of the actual inventory through the offset for residual materials.
　　(III)Within the verification cycle, enterprises use a self-declaration approach to complete the verification procedures with the customs. For verification cycles exceeding one year, enterprises should make an annual declaration.
　　1.Self-Declaration: Refers to the act of enterprises autonomously determining the consumption of bonded imported materials and truthfully declaring it to the customs. Enterprises can autonomously choose the accounting methods, such as unit consumption, material consumption list, and work order, for the consumption of bonded imported materials, declare the current accounting results to the customs, and complete the verification procedures. When declaring the accounting results, enterprises should submit the following data for the current verification cycle:
　　(1)Relevant materials for applying for the processing trade account book;
　　(2)Data on actual import, export, transfer, sale, and end-of-period inventory;
　　(3)Information on by-products, defective products, sub-products, disaster-affected bonded goods, and destroyed goods;
　　(4)Situation of material and finished product returns;
　　(5)Information on domestically purchased materials;
　　(6)Situation of consumable materials;
　　(7)Supplementary explanations for other situations that the enterprise needs to declare.
　　2 Annual Declaration: For enterprises with a verification cycle exceeding one year, they should make at least one annual declaration to the customs, including data on the consumption of bonded materials, etc. The accumulated data from annual declarations serves as the total consumption of bonded materials for the current verification cycle.
　　(IV)Before the end of the account book verification cycle, if enterprises proactively supplement declarations for issues discovered due to sudden situations or internal self-inspection and control, and provide timely control or corrective measures, the customs will centrally handle the declarations submitted by the enterprise.
　　(V)Enterprises should declare imports and exports based on the material number or item number as per the processing or input processing supervision method in accordance with the material number or item number used during the establishment of the account book.
　　(VI)Enterprises should submit, retain, and store corresponding electronic data and paper documents in accordance with regulations.
　　(VII)If an enterprise experiences any of the following situations, the customs will no longer implement the new supervision mode:
　　(1)Customs credit rating is downgraded to a dishonest enterprise;
　　(2)The internal information system is incomplete, and the logical chain of processing trade goods flow and data flow is incomplete, and material consumption management does not meet customs supervision requirements;
　　(3)Inability to handle customs procedures in a standardized manner and failure to submit, retain, and store relevant data, documents, and information in a timely manner;
　　(4)Voluntary application to not implement the new supervision mode;
　　(5)Other reasons requiring the revocation of the new supervision mode.
　　If the customs no longer implement the new supervision mode for the enterprise's account book management, the enterprise should complete the verification procedures for that account book within 30 days from the date of determination.
　　III. Other Matters
　　(I) The General Administration of Customs will further supplement and refine the system of annual declarations. At the same time, relevant systems for the supervision of customs bonded repair businesses will be researched and introduced. Before the relevant systems are issued, enterprises with bonded repair needs within the enterprise or group are encouraged to promptly contact the local customs to submit their requirements. The General Administration of Customs will establish unified supervision rules before the formal implementation of relevant regulations.
　　(II) After the official implementation of this announcement, for processing trade permits (books) that have not been completed, enterprises can transfer the unexported processing trade goods to newly opened account books.
　　(III) Matters not explicitly addressed in this announcement shall be managed in accordance with the general provisions of processing trade supervision.
　　This announcement shall be effective from the date of publication, and it simultaneously repeals Announcement No. 19 of the General Administration of Customs of the People's Republic of China in 2018.

　　This announcement is hereby made.

　　General Administration of Customs
　　June 21, 2018