On 1 April 2022, the Measures for the Administration of the Bonded Areas of the Customs of China (Order No. 256 of the General Administration of Customs) came into force. The Bonded Areas (hereinafter as “the Areas”) is a vital platform for China's open economy and foreign trade with a focus on attracting foreign investment and promoting industrial transformation and upgrading.

For foreign stakeholders, especially those with businesses involved in importing/exporting, understanding how the Areas are managed could be important with helping to adopt appropriate development plans, as well as with implementing suitable and compliant actions in China’s market. Here are some key points regarding how the bonded areas are managed: 

·   Trade Control Policies

    Commodities that are prohibited by the State shall not be imported or exported in areas unless otherwise specified by regulations. For example, although used mechanical and electrical products are prohibited from being imported, those that are listed on the Product Repair Catalogue of Bonded Areas can be imported into the areas for repair purpose only.

    China applies two models to manage restricted imported commodities: quota model and licensing model. In some special sectors such as health, safety, environmental protection, wildlife protection etc., special permit or specific documentations are required aside from regular licensing.

·    Tax Policies in the bonded areas