Tooling Ownership Registration under Chinese Law Rules
Foreign tooling held in Chinese factories demands explicit bailment deeds, metal serial tags, local VAT fapiao receipts, and PBOC credit registrations.
Temporary Import Deregistration
Meaning
Customs procedures executed by importing enterprises in China release the bonds and complete the tax-exempt status of temporarily imported goods. Initiating temporary import deregistration is mandatory within six months of the initial entry of the goods, unless an extension has been granted by the regional customs house. This process confirms that the machinery or exhibition materials have either been re-exported or transitioned to permanent import status upon payment of duties.
It prevents the forfeiture of the security deposit held by the state.
Verification Phase
Enterprises submit the original customs declaration forms, the deposit receipts, and the outward shipping documents to the local customs desk for review. Customs officials verify that the serial numbers and technical descriptions of the re-exported items match the initial import logs. This scrutiny ensures that no imported components were left behind or sold illegally in the domestic market.
Any discrepancy in the weight or quantity of the items triggers an administrative investigation.
Financial Recovery
Once the re-exportation is verified, customs issues a refund authorization for the security deposit. The importing enterprise receives the cash bond back into its registered account. This refund process restores the operating liquidity of the trading firm.
Duty Transition
If the goods cannot be re-exported, the enterprise must apply to convert them to ordinary imports before the deregistration deadline. This transition requires the payment of the original import tariffs and value-added tax calculated at the asset’s depreciated value. The deregistration is then completed under a different customs code that reflects the paid duties.
This pathway allows foreign suppliers to sell demonstration equipment directly to Chinese buyers after trade shows.