General Administration of Customs, Administration of the Transfer of Goods out of Export Processing Zones for Further Processing Procedures

Promulgated: March 21 2005
Effective: May 1 2005
Interpreting authority: General Administration of Customs
Applicability: "Transfer of goods out of export processing zones for further processing" refers to business activities whereby processing enterprises within the zones (Transferor Enterprises) that have completed customs declaration in accordance with regulations transfer directly, or through bonded warehouse enterprises, their own processed products to processing trade enterprises of other export processing zones, bonded zones or other zones under special supervision of customs, or to those outside zones under special supervision of customs (Transferee Enterprises) for further processing and re-export (Article 2).

Main contents: Bonded materials and parts of Transferor Enterprises that have not been subject to substantial processing may not be transferred out of the zone for further processing (Article 3). Article 6 specifies the transfer procedures to be handled for transfer of goods to Transferee Enterprises (Article 6). Article 14 states the relevant procedures to be handled when goods transferred out of the zones are returned or replaced due to such reasons as non-compliance with the quality standard. All goods transferred out of export processing zones for further processing shall be re-exported after processing. In the case of goods that have special reason to be domestically sold or converted to be used for production of domestically sold products, processing trade enterprises outside the zones shall handle the procedures in accordance with related state provisions (Article 16).
Related legislation: PRC Customs Law (Revised), July 8 2000, CLP 2000 No.7 p10 and General Administration of Customs, Oversight of Export Processing Zones Tentative Procedures, May 24 2000, CLP 2000 No.7 p11