Laws of the People's Republic of China

the Ministry of Commerce,the General Administration of Customs

The Circular of the Ministry of Commerce and the General Office of General Administration of Customs on Related Matters Concerning the Trade Administration in Bonded Area and Bonded Logistic Park

Shan Zi Zi [2005] No.76

The competent department of commerce of all provinces,autonomous regions,municipalities directly under the Central Government,cities specifically designated in the state plan and Xinjiang Production and Construction Corps,and all customs directly under the General Administration of Customs:

With a view to taking practical measures to perform the undertakings made by the state in entering WTO,perfecting the trade administration of the enterprises in bonded area,bonded logistic park,related issues are not notified as follows:

1.

The enterprise,individual in bonded area and bonded logistic park may acquire right to trade and right to apply for distributing in accordance with the Foreign Trade Law of the People's Republic of China,the Measures on the File-recording and Registration of Foreign Trade Operator,the Measures for Administration of Business Area of Foreign Investment and other related provisions.The enterprise and individual acquiring the above-mentioned rights may conduct trade business with the enterprise and individual (including those that have not acquired the right to trade)outside the area and park but within the territory.The foreign-funded enterprise acquiring right to distribute may conduct distribution within the territory.

2.

The foreign trade operator in the bonded area and bonded logistic park selling products outside the area and park but within the territory or purchasing products outside the area and park but within the territory shall abide by related provisions of the state to import and export,foreign exchange and the administration of tax collection.

(1)

The entry and exit of goods between the bonded area,bonded logistic park and those outside the area and the park but within the territory shall handle the import and export procedures in accordance with related provisions of the customs.Where the enterprise within the area and park distributes goods beyond the area but within the territory as foreign trade operator,it shall handle the formalities relating to declaration and verification and writing-off of foreign exchange in the name of enterprise in the area or park; where an enterprise or individual outside the area or park purchases goods from the enterprise or individual in the area or park,it shall be handled in accordance with current provisions.

(2)

The entry and exit of goods between foreign trade operator within the bonded area,bonded logistic park and those outside the territory shall not apply to import and export license administration,unless otherwise prescribed by the international treaties to which the People's Republic of China is a signatory or a party,or by laws,administrative regulations and related ministerial rules.

(3)

Where the textiles belonging to the Temporary Goods Administrative Catalogue of Textile Export enter into the bonded area,the bonded logistic park from outside the area and park but within the territory,the customs will not examine the license,and when the goods really exit the territory and are exported to the countries or regions that the temporary administration of textiles shall be applied to in accordance with relevant provisions,the customs conducts the examination and release procedures on the strength of the license.

3.

The establishment of enterprise in bonded area,bonded logistic park shall accord with the state industry policies,any enterprise within the area and park shall not conduct manufacture and business in areas where the investment has been prohibited by the state .

4.

The tax collection,customs supervision,foreign exchange administration of all enterprises in bonded area,bonded logistic park shall be handled in accordance with relevant provisions of the State Administration of Taxation,the General Administration of Customs,the State Administration of Foreign Exchange.

The General Office of the Ministry of Commerce of the PRC

The General Office of the General Administration of Customs of the PRC

July 13,2005