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Notice of the General Office of the Ministry of Commerce and the General Office of the General Administration of Customs on Issues of Trade Management in the Free Trade Zones and the Bonded Logistics Parks

SZZ [2005] No. 76

Competent authorities of commerce in all provinces, autonomous regions, municipalities directly under the Central Government, municipalities with independent planning status and Xinjiang Production and Construction Corps as well as all customs directly affiliated to the General Administration of Customs:

  To effectively fulfill the undertaking of China's joining WTO and improve trade management of the free trade zones and the bonded logistics parks, relevant issues are notified as follows:

1. The enterprises and individuals in the free trade zones and the bonded logistics parks can acquire trade rights and apply for distribution rights according to Foreign Trade Law of the People's Republic of China, Measures for Filing and Registration of Foreign Trade Operator and Measures for the Administration on Foreign Investment in Commercial Fields as wellas other applicable provisions. The enterprises and individuals that have acquired the above rights may carry out trade activities with the enterprises and individual outside the areas but in China (including those that have not acquired the trade rights). The foreign investment enterprises that have acquired distribution rights may carry out distribution activities by law in China.

 

2. To sell products to enterprises outside the areas but in China and purchase products from the regions outside the areas but in China, foreign trade operators in the free trade zones and the bonded logistics parks shall follow relevant regulations on import/export, foreign exchange and taxation management.

 (1) The goods entering or leaving the free trade zones/the bonded logistics parks and regions outside the areas but in China shall go through import/export procedures according to applicable customs regulations. To distribute the goods to regions outside the areas but in China in the name of foreign trade operators, the enterprises in the areas shall complete procedures of customs declaration and foreign exchange cancellation after verification; goods purchase by enterprises and individuals in the areas from other enterprises and individuals outside the areas shall be governed by the current regulations.

 (2) The goods trade between the foreign trade operators in the free trade zones and the bonded logistics parks and the outside borders shall not implement import/export license management, unless expressly stipulated by the international treaties joined or executed by People’s Republic of China as well as laws, regulations and applicable rules.

(3) For the textile exported overseas to the free trade zones and the bonded logistics parks and on the List of Commodities under Provisional Administration of Textiles Exported, the customs does not check and verify the license. On exit of the above goods, the customs will inspect and discharge the textile to counties or regions that adopt temporary management on exported textile according to relevant regulations.

3. The establishment of enterprises in the free trade zones and the bonded logistics parks shall be governed by national industrial polices, and any enterprise in the areas shall not be engaged in production and operation activities in the fields prohibited by the State.

4. The taxation, customs supervision, foreign exchange management matters of all enterprises in the free trade zones and the bonded logistics parks shall be processed according to the applicable regulations of the State Administration of Taxation, General Administration of Customs, State Administration of Foreign Exchange.

General Office of the Ministry of Commerce of the People’s Republic of China

 

General Office of the General Administration of Customs of the People’s Republic of China

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