Policy shift on guarantee deposits for processing trade

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Process manufacturers are now able to pay standing book deposits with bank guarantees rather than cash according to a statement released by the Ministry of Commerce on Wednesday.

Notice No. 71, jointly released by the Ministry of Commerce, China Customs, and the China Banking Regulatory Commission, stipulates the ways by which enterprises engaged in processing trade can pay their guarantee deposits.

On July 23, the Ministry of Commerce and China customs had announced a restricted commodities catalogue for processing trade, and required enterprises engaged in processing trade in eastern China to have guarantee deposits in the Bank of China, the designated bank of the China Customs. The new announcement further clarifies how deposits can be paid, with the specifics of the guarantee deposit operation to follow the rules set by the Bank of China and the China Customs.