• Service: Tax, Global Indirect Tax, International Tax
  • Type: Regulatory update
  • Date: 7/31/2014

China - Simplified customs approval procedures for processing trade entities 

July 31: China's imports and exports benefit significantly from processing trade operations, but the administrative requirements for successfully operating a processing trade enterprise have been commonly perceived to be tedious and time consuming. For this reason, many industries have long been expecting China Customs to introduce policies to simplify the current approval procedures in order to improve efficiency. This is now becoming a reality.

Recent amendments by China’s General Administration of Customs to the processing trade regulations simplify and standardise daily operational procedures with regard to matters such as handbook set up and verification, bonded goods outsourcing, and factory transfers.

These changes also affect the role of China Customs in the actual supervision of relevant declaration data and the management of bonded goods.

KPMG observation

With the new rules, processing trade companies need to consider the effect of the new regulations on their daily customs operations, and how to enhance their trade compliance and internal control management capacity.

Read a July 2014 report prepared by the KPMG member firm in China: China Customs Simplifies Approval Formalities for Processing Trade and Shifts Focus to Actual Supervision

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