Aligning Related Party Import Prices with Customs Transaction Value Rules
Aligning related party import prices requires establishing prospective formula clauses in supply contracts that satisfy both tax profit margins and customs valuation decrees.
GACC Announcement 14
Meaning
A regulatory mandate defines the operational protocols for the flow of goods within and across the borders of Comprehensive Bonded Zones. This gacc announcement 14 facilitates the movement of raw materials and finished products between the domestic market and these special economic zones. The General Administration of Customs introduced the measure to improve the efficiency of bonded logistics and promote the development of the high tech manufacturing sector.
Operational Framework
The policy allows for the tax free entry of equipment and materials into the designated zones for the purpose of production and storage. This gacc announcement 14 removes the requirement for certain categories of goods to be physically transported out of the zone before they can be sold in the domestic market. Procedures for electronic filing and real time monitoring replace the traditional manual inspection of inventory.
Regulatory Scope
Regulatory rules apply to all enterprises registered within the special customs supervision areas and their business partners in the domestic territory. This gacc announcement 14 specifies the types of processing trade and logistics services that qualify for the simplified clearance procedures. Items subject to export duties or environmental restrictions are generally excluded from the streamlined handling.
The scope of the regulation extends to the management of waste and scrap generated during the manufacturing process.
Compliance Obligation
Enterprises must maintain a digital inventory system that is accessible to the customs authorities for auditing purposes. This gacc announcement 14 requires the monthly reconciliation of accounts and the declaration of any discrepancies in the stock level. Failure to comply with the reporting standards leads to the loss of the preferential tax status and the imposition of administrative fines.
The customs bureau conducts regular spot checks to ensure that the goods remain within the authorized areas.