General Administration of Customs, Announcement [2009] No.14: Collection and Refund of Interest on Deferred Payment of Tax and Duty on Bonded Goods under the Processing Trade that are Sold Domestically

Issued: March 16 2009
Effective: as of date of issuance

Main Contents: Where bonded goods under processing trade are all exported within the stipulated valid time limit (including the approved extension of the time limit), customs shall notify the Bank of China to refund the security deposit and the interest for its current deposit in full (Article 1). Where the bonded materials or products under processing trade are sold domestically, customs shall levy, in addition to tax and duty, interest on deferred payment of such tax and duty. The interest rate shall be the rate for current deposits as announced by the People's Bank of China, which is 0.36% at the moment (Article 2).

Related Legislation: PRC Regulations on Import and Export Taxes and Duties, Nov 23 2003; State Council General Office, Circular on the Transmission of the State Economic and Trade Commission and Other Departments, «Opinion on Further Improving the Bank Security Deposit Account System for the Processing Trade», Apr 5 1999; and General Administration of Customs, Announcement [2009] No.13, Mar 6 2009