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

Promulgated: June 23 2005
Effective: July 1 2005
Interpreting authority: General Administration of Customs
Applicability: "Bonded logistics centre (Type B)" (hereinafter, Logistics Centre) refers to a customs centrally regulated area approved by customs, operated by an enterprise legal person in China, and entered by various enterprises to engage in bonded warehousing and logistics business (Article 2).

Main contents: Article 3 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 transit; (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. The warehousing area of a Logistics Centre in the eastern region shall be not less than 100,000 square metres (Article 4). The registered capital of an enterprise operating a Logistics Centre shall be no less than Rmb50 million (Article 5). An enterprise operating a Logistics Centre may not directly engage in bonded warehousing and logistics business activities in its Logistics Centre (Article 6). The minimum registered capital of an enterprise with independent legal person status in a Logistics Centre shall be Rmb5 million; in the case of an enterprise branch or sub-branch, the minimum registered capital shall be Rmb10 million (Article 11). A Logistics Centre may not be leased or lent to others to operate, nor may sub-centres be established (Article 14). Enterprises in a Logistics Centre 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 15). Enterprises in a Logistics Centre may not launch businesses in the centre such as: (1) commercial retail; and (2) production and processing operations (Article 16). The term of bonded storage of goods in a Logistics Centre is two years. Except for special circumstances, an extension may not exceed one year (Article 26). 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 stipulate otherwise (Article 28). Goods listed under Article 3 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 29). Goods in a Logistics Centre that enter China shall be deemed as imports and procedures for import customs clearance shall be carried out (Article 32). 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 33). Goods in a Logistics Centre may be transferred and moved between enterprises in the Logistics Centre with the relevant customs formalities completed. Without the approval of customs, enterprises in the Logistics Centre may not use the goods stored for securing mortgages, pledges and liens, shifting to alternative uses, or making other arrangements without authorization (Article 37). 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 38).
Related legislation: PRC Customs Law (Revised), Jul 8 2000, CLP 2000 No.7 p.10