General Administration of Customs, Tentative Administrative Measures for Bonded Logistics Centres (Type A)

Promulgated: June 23 2005
Effective: July 1 2005
Interpreting authority: General Administration of Customs
Applicability: The term 'bonded logistics centre (Type A)' (hereinafter, Logistics Centre) refers to a customs regulated area approved by customs, operated by an enterprise legal person in China and specialized in bonded warehousing and logistics business (Article 2). The term 'public Logistics Centre' refers to a customs regulated area operated by an enterprise legal person in China that is specialized in warehousing and logistics business to provide bonded warehousing and integrated logistics services to the public. The term 'private Logistics Centre' refers to a customs regulated area that is operated by an enterprise legal person in China and provides bonded warehousing and logistics services only to the enterprise itself or members of the enterprise group (Article 3).

Main contents: Article 4 of the Measures lists the items that may be stored in a Logistics Centre subject to approval by customs: (1) exports from China; (2) entrepôt goods and international freight in transits (3) goods of foreign investors for temporary storage; (4) imports and exports of processing trade; and (5) general trade imports with which customs formalities have not been completed. Registered capital of an enterprise operating a Logistics Centre shall be no less than Rmb30 million. An enterprise operating a private Logistics Centre in the eastern region shall have an annual amount of imports and exports (including transfers for further processing) of not less than US$200 million (Article 6). The warehousing area of a public Logistics Centre in the eastern region shall be not less than 20,000 square metres; and the warehousing area (including depots) of a private Logistics Centre in the eastern region shall be not less than 4,000 square metres (Article 7). A Logistics Centre may not be leased or lent to others to operate, nor may sub-centres be established (Article 12). Enterprises operating Logistics Centres may launch the following businesses: (1) bonded storage of imports and exports and other goods with which customs formalities have not been completed; (2) simple processing and value-added services, for the purpose of circulation, for goods stored therein; (3) global procurement and international allotment and distribution; and (4) entrepôt trade and international freight transits (Article 13). Enterprises operating Logistics Centres may not launch businesses in the centres such as: (1) commercial retail; and (2) production and processing operations (Article 14). Incoming and outgoing goods between Logistics Centres and places outside China shall not be subject to import and export quotas or licensing, except for goods subject to involuntary export quotas or goods in respect of which the PRC has participated in or concluded an international treaty or where state provisions explicitly provide otherwise (Article 24). Goods listed under Article 4 from outside China that are approved by customs to be stored in a Logistics Centre shall be exempted from customs duty and import-stage tax (Article 25). Goods in a Logistics Centre that enter China shall be deemed as imports and procedures for import customs clearance shall be carried out (Article 28). Goods that enter a Logistics Centre from inside China shall be deemed as exports and procedures for export customs clearance shall be carried out (Article 29). Where bonded warehousing goods are damaged or lost during the storage period by causes other than force majeure, enterprises operating Logistics Centres shall pay tax to customs for the goods that are damaged or lost in accordance with the law and assume corresponding legal liability (Article 33).

Related legislation: PRC Customs Law (Revised), Jul 8 2000, CLP 2000 No.7 p.10