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Home ? Trade Essentials ? Relocation of Processing Trade Enterprises: Key Considerations Explained

In the globalized business environment, processing trade enterprises may face relocation needs, whether moving entirely or partially out of the original customs jurisdiction. Certain regulations and procedures must be followed. So, what should processing trade enterprises pay attention to during relocation?

I. Relevant Provisions of the Customs Law

In actual supervision, customs authorities have found that some processing trade enterprises have completed cross-customs relocation procedures but have not completed the cancellation of their manuals. According to the relevant provisions of the Customs Law, the relocating enterprise involving bonded goods must apply to customs before relocation and may transfer the bonded goods only after obtaining customs approval.

II. Common Issues in Processing Trade Enterprise Relocation

Due to business needs, our companys factory needs to relocate across customs jurisdictions. What procedures should we complete?

According to Article 9 of the Regulations of the Peoples Republic of China on Customs Declaration Unit Record Filing Management, if the information stated in the Declaration Unit Record Filing Information Form, such as the name of the declaration unit, type of market entity, domicile (main business premises), legal representative (responsible person), or declaration personnel, changes, the declaration unit shall apply for the change at the local customs within 30 days from the date of the change.

We are a processing trade enterprise with remaining materials and non-valued equipment. How should we handle these items during relocation?

The enterprise must first complete the transfer procedures for remaining materials and non-valued equipment or ship them out of the country and complete the cancellation procedures for the manual (account book).

How is the supervision period for non-valued equipment calculated after relocation?

For processing trade enterprises, the transfer of non-valued equipment between the relocating and receiving enterprises due to relocation is treated as non-valued equipment of the original enterprise for supervision purposes. The supervision period for transferred non-valued equipment is calculated continuously.

Will relocation affect the enterprises credit rating with customs?

According to relevant regulations, if a senior certified enterprise undergoes division, merger, or overall relocation but still meets the conditions for maintaining its original credit rating, customs will reissue the Senior Certified Enterprise Certificate upon application.

Our company plans to dispose of some documents during relocation. How long should processing trade enterprises retain documents used for cancellation?

According to Article 37 of the Measures of the Peoples Republic of China for the Supervision of Processing Trade Goods, the documents for manual establishment and cancellation of processing trade goods shall be retained for 3 years from the date of manual cancellation.

Tags: Foreign trade import and export