Customs Department Clarifies Outsourced Processing Trade Procedures

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Sept. 1 – China’s General Administration of Customs has issued a circular clarifying the administration procedures for trade companies outsourcing their processing businesses and relevant H2000 administrative systems.

Circular 51 confirms that processing trade companies with limited production capacity and technical capabilities can outsource their processing operations; pending approval of the local customs office. The circular emphasizes that outsourcing service providers are not allowed to further subcontract the processing agreement.

Companies applying to outsource processing business are required to submit a copy of their business license, a certificate confirming production capabilities approved by the outsourcing service company, and other documents required by the local customs office.

Majority of China’s processing trade industry is carried out in South China, specifically Guangdong Province. Businesses needing help with compliance may email Dezan Shira & Associates‘ Senior Associate, Rosario DiMaggio at guangzhou@dezshira.com or call the Guangzhou office at  +86 -20- 3825 1725.