With the slowdown of the growth rate of overseas investment undertaken by China, and the relative increase of processing cost, enterprises begin to pay attention to the development and utilization of international market and international resources. Outbound processing is called an effective way. Outbound processing refers to a kind of business activity in which qualified enterprises in China entrust their own raw and auxiliary materials, parts, components or semi-finished products to overseas processing enterprises for processing, and then transport them back to China within the specified time limit and pay the processing fees and overseas materials and parts fees. From the concept point of view, outbound processing is a special form of outsourcing, but its cooperation object is overseas processing enterprises.
At the end of last year, the General Administration of Customs issued the “notice on issues related to outbound processing business” to promote a new customs supervision system for outbound processing across the country. Now, let’s read this announcement.
Business conditions for outbound processing of enterprises
First of all, the credit rating of enterprises engaged in outbound processing business must be enterprises with general certification or above; secondly, outbound processing business shall not involve goods prohibited or restricted by the state; thirdly, outbound processing business shall not involve goods subject to export duties imposed by the state. As long as the above three requirements are met, the enterprise is qualified to carry out the outbound processing business, but it must go through the relevant formalities with the local customs in advance.
Principles of customs supervision over outbound processing
For the supervision of outbound processing goods, the customs adopts the account book method to implement. It may be paper or electronic, depending on whether the information system is online.
In order to carry out export processing business, enterprises must set up account books, statements and other relevant documents that meet the requirements of customs supervision, and submit the outbound processing contract, production process description, pictures or samples of relevant goods and other certificates and materials required to be collected by the customs, and truthfully declare the import and export ports, commodity names, commodity numbers, quantities, specifications, models, prices, etc Origin, etc. In case of using overseas materials and parts, the quantity and amount of overseas materials and parts used shall also be reported truthfully.
The principle of price assessment and taxation by the Customs for outbound processing
In the process of outbound processing, only when the goods are transported back to China within the specified time limit, can they enjoy the tax rate of outbound processing. The customs will, in accordance with the relevant provisions of the regulations of the people’s Republic of China on import and export duties and the measures of the customs of the people’s Republic of China for examining and approving the duty paid price of import and export goods, and on the basis of overseas processing fees, material and parts fees, transportation and related expenses and insurance fees of re transportation back to China, the customs will calculate the customs value of outbound processing.
Once the outbound processing goods are not transported back to China within the prescribed time limit, they can not enjoy the tax rate of outbound processing. In this case, the enterprise shall go through the import procedures of goods in accordance with the general trade management regulations.
Verification and cancellation of export processing account books by customs
The customs adopts the management mode of enterprise independent verification and automatic verification and cancellation for the account books of outbound processing. The outbound processing enterprise must verify and report the outbound processing account book to the competent customs within 30 days from the end of the verification period. For the outbound processing account books that have not been reported to the Customs within the time limit, the customs will contact the enterprises through the electronic bulletin board to urge the verification. For the outbound CNC machining account books that are not reported to the Customs after verification, the customs may directly cancel and cancel the account books.
If there is any abnormal situation such as unbalanced account in the account book of outbound processing, the enterprise must explain the situation and complete the corresponding customs procedures according to the specific situation, and then cancel the account. If it is necessary to delete or modify the customs declaration form, the enterprise shall handle the matter in accordance with the relevant contents of the administrative measures of the customs of the people’s Republic of China on the modification and cancellation of the customs declaration form for import and export goods.