Catalogue of Prohibited Commodities on Processing Trade

       Pursuant to the requirements under the “Adjustment of the Export Tax Rebate Rates for Certain Goods and Revision of the Catalogue of Prohibited Commodities on Processing Trade” [Caishui (2006) No. 139], on 1 November 2006 the Ministry of Commerce, the General Administration of Customs and the State Environmental Protection Administration issued a public notice [Public Notice (2006) No. 82] which announced the revised Catalogue of Prohibited Commodities on Processing Trade to be effective on 22 November 2006.  

According to the public notice, processing activities approved by the relevant trade administration authority before 22 November 2006 will be allowed to register with the Customs and to finish the processing trade contracts within the specified time limit.  Enterprises subject to networked supervision by the Customs will be allowed to finish their processing trade contracts before 22 November 2007.  However, if such processing trade contracts cannot be finished within the specified time limit no extension will be granted.

Enterprises engaged in processing trade applying for domestic sales should follow the requirements stipulated in the Public Notice (2006) No.52 issued by the General Administration of Customs, the Ministry of Finance, the Ministry of Commerce, People’s Bank of China, and the State Administration of Taxation.  They need to pay the relevant customs duties and associated interest on deferred payment for the bonded materials.  Calculation of the interest on deferred payment will be based on the saving deposit interest rate announced by People’s Bank of China in the previous year to the date of the payment notice issued by the Customs.

Members are invited to refer to the following website for details of the Public Notice (2006) No. 82:

http://www.mofcom.gov.cn/aarticle/b/c/200611/20061103621171.html

For enquiries, please contact Jeffreys Tsang at 2732 3197.