According to stipulations of the “Resolution of the General Administration of Customs (GAC) on Revising 'PRC Customs Measures for the Supervision of Processing Trade Goods'” (GAC Decree No. 168), and the “Decree of GAC on Publication of 'PRC Measures for On-line Supervision of Processing Trade Enterprises'” (GAC Decree No. 150), a notice concerning management of processing trade outward processing and operation of H2000 outward processing management system (hereinafter abbreviated as outward processing system) is published as follows:

1. Processing trade enterprises that have processing capacity but cannot complete the whole process and order restricted by characteristics and technical conditions of their own (hereinafter abbreviated as enterprises) may develop outward processing business after submitting application and being approved by Customs.

Local authoritative Customs that hold the “Processing Trade Manual” (including electronic manual, electronic books and paper manual) shall be in charge of examining and approving the applications of enterprises, handling the outward processing business procedures and supervising the bonded goods. Outward processing enterprises shall not give processing trade goods to others for outward processing.

2. For enterprises that have already used outward processing system to run their outward processing business, authoritative Customs no longer issue them paper “Application Form for Processing Trade Goods Outward Processing”, and shall instead use the outward processing system to handle related Customs procedures according to the “Provisional Measures of GAC on Promotion of H2000 Outward Processing Management System” (for details, see appendix).

When outward processing system cannot be used to manage outward processing business due to systematic breakdown or lack of the system, paper certificate shall be used. After the outward processing system resumes normal operation, enterprises are required to replenish the operation into the system according to the “Provisional Measures of GAC on Promotion of H2000 Outward Processing Management System”.

3. When enterprises apply to develop outward processing business, they should submit copies of their business licenses, production capacity certificates and other necessary materials according to the stipulations on “contract enterprises should go through registration with Customs” in Clause 10 of Article 3 of the “PRC Customs Measures for the Supervision of Processing Trade Goods” revised in line with the “Resolution of the General Administration of Customs (GAC) on Revising 'PRC Customs Measures for the Supervision of Processing Trade Goods'” (GAC Decree No. 168).

When a contract enterprise has already filed its business license and production capacity certificate with Customs, it does not need to offer such materials repeatedly every time when it applies. It should leave copies of the processing contracts or agreements signed for examination.

4. Approved by authoritative Customs, enterprises may, according to bonded processing administrative rules, go through related procedures for such bonded goods as scraps, defective products and by-products produced in the production of outward processing and surplus materials and parts that will not be shipped back.

5. When the amount of bonded goods for outward processing exceeds 50% or is all of the annual production capacity as certified by authoritative commercial departments, enterprises should use outward processing system to go through related Customs procedures.

6. The notice becomes effective from the day of publication. If there are existing rules that run against this notice in content, the notice applies.


General Office of GAC
August 10, 2009