The bonded system refers to a customs supervision system under which goods that have been approved by the customs to temporarily postpone tax formalities are stored, processed, assembled and then re-exported under customs supervision. my country’s processing trade bonded system has the following essential characteristics:
(1) Bonded establishment. Only when enterprises apply to the customs for valid approval documents for processing trade and proof of production capacity of bonded processing enterprises in accordance with the law, as well as information such as the trade mode, unit consumption, import and export ports, commodity names, commodity numbers, specifications, prices, origins, and import and export deadlines of the bonded processing goods to be imported and exported, will the customs handle electronic manuals or electronic account books.
(2) Tax deferral. Tax deferral can be said to be the most basic motivation for many foreign-related enterprises to engage in processing trade. Due to the temporary suspension of tariffs and import-link taxes at the import stage, enterprises can reduce a considerable amount of cash flow and use “small money to do big things”.
(3) Supervision extension. The extension of customs supervision of bonded processing goods is reflected in the following three aspects: First, time extension. The withdrawal of bonded processing materials at the entry point does not mark the end of supervision, but the beginning of customs bonded supervision. Customs will continue to supervise until they are processed and assembled and then shipped back out of the country or until formal import procedures are completed. Second, location extension. The places where bonded processing materials are processed and assembled after leaving the customs supervision site at the entry port must be places supervised by the customs. Third, time extension. The bonded period refers to the time limit for processing, assembly, and re-export within the country after the customs approves the tax declaration. Customs stipulates that enterprises must report import and export situations within a certain period to the customs for verification. For example, if a contract signed by an operating enterprise is terminated early for some reason, it should report to the customs for verification within 30 days from the date of termination of the contract.