Meaning
An administrative registration procedure with the General Administration of Customs requires Chinese processing trade enterprises to log foreign-owned machinery utilized in bonded assembly lines. Executing bonded processing equipment customs recordation secures tax-exempt status for high-value manufacturing apparatus imported under processing trade handbooks. This action prevents the assessment of standard import duties and value-added taxes on the machinery.
It requires the submission of equipment specifications and proof of foreign ownership, which must be cross-referenced with the commercial invoices.
Filing Process
The submission of the registration files occurs through the unified national customs online portal. During the phase of bonded processing equipment customs recordation, the local factory must upload the original machinery lease or bailment contracts. These documents prove that the foreign entity retains legal title to the registered equipment.
Customs officials then issue a digital electronic handbook that records each asset’s serial number.
Compliance Constraint
The registered machinery must remain physically within the approved factory zone and must not be sold or leased to third parties. This boundary of bonded processing equipment customs recordation means that any relocation of the assets requires prior customs authorization. Unauthorized movement or sale can trigger smuggling investigations and substantial financial penalties.
These penalties can disrupt the entire regional supply chain.
Deregistration Method
Once the processing contract expires, the enterprise must complete the formal de-registration and return the machinery to its origin. Physical audits by local customs officers verify that the equipment matches the original recordation during this final step. Completing this closure ensures the release of any security bonds deposited at the start of the operations.
