Meaning
The process of releasing imported manufacturing equipment from customs supervision after the mandatory regulatory period expires allows factories to dispose of or repurpose their machinery. This processing trade equipment de-supervision applies to machinery imported duty-free under processing trade programs. Once the supervisory period ends, the equipment can be sold, leased, or scrapped within China without further customs oversight.
Regulatory Release
Customs supervision on such equipment typically lasts for a specified number of years from the date of import. During this period, the machinery must be used exclusively for the production of export goods within the approved factory.
Procedural Step
To finalize this process, the enterprise must submit an application to the local customs office showing that the supervision period has expired and that all export obligations were met. Customs then conducts an audit of the equipment inventory and issues a de-supervision certificate.
Duty Settlement
If the enterprise wishes to sell or repurpose the machinery before the supervisory period expires, it must pay prorated customs duties and import taxes. This payment is calculated based on the remaining value of the equipment and the duration of the unexpired supervision period. Once the duties are settled, the machinery is released from customs control.
