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Basic Clearance Process

for TA
Exhibitions Time Limit:
6 Months

Import
Registratio &Export on Discharge
n Security
ATA

Customs Confirm

ATA Carnet
◼ATA Carnet, refers to a special certificate used for simplified customs
clearance for TA goods, and it’s usually for those which have frequent TA
activities in different countries.

◼Treatment of the goods under ATA carnet

• Exempted from providing security to the customs;
• Not to fill in the general import and export declaration documents and
submit other customs declaration information and documents;
• Exemption from import and export duties and taxes;
• Exemption from general economic trade control measures

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The Operation of ATA system

and its premises

TA holders

Issuing and Clearance under

Guaranteeing Guarantee

Guaranteeing Customs
Association Authorities
international
joint guarantee

Customs Clearance System:

Customs Bonded System
Customs Bonded System
refers to a special customs system established by a country to
encourage the development of the export of processed products or
specific storage within its customs territory.
For those imported goods that are processed or stored in a specific
way in China, under the premise that the final destination has not
been determined, they will be granted temporary tax exemption under
customs supervision.

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History of Bonded System

• Europe in the 14th and 15th Centuries: The Age of Navigation
Commerce and shipping have become important aspects of a country's
income
• Entrepot trade ：
Country of
Production
Country of
Consumption

Country of
• The country of transit provides warehousing
Transit and shipping
services → Temporary exemption from import duties → Bonded storage

Bonded System in RKC

• In international trade it is sometimes not known at the time of
importation how the imported goods will finally be disposed of . This
means that the importers are obliged or may choose, to store the
imported goods for some time before they are finally disposed of.
• When the goods are intended for clearance for home use, the Customs
warehouse procedure enables the importers to delay the payment of
import duties and taxes until the goods are actually taken into home use.
The importers may also choose to place the goods in a warehouse until
they can meet the conditions relating to restrictions or prohibitions.

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Basic characteristics of
bonded goods
(1) Imported goods are brought into the country for limited
purposes;

(2) The final direction of the imported goods cannot be determined

at the time of entry;

(3) If certain conditions are met, bonded goods can be temporarily

exempted from paying various taxes in the import link;

Type of Bonded System

• Inward Processing • Bonded Storage • Bonded Service

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Customs Supervision on Inward

Processing

Clearance
Definition
Treatment

Clearance Classified
Supervision
Formalities

Definition of Inward Processing

• Inward Processing In RKC

“Inward Processing" means the Customs procedure

under which certain goods can be brought into a Customs
territory conditionally relieved from payment of import
duties and taxes, on the basis that such goods are
intended for manufacturing, processing or repair and
subsequent exportation.

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Processing
Inward

UCC Processing
SP Chapter 5 Outward
Processing
Inward
Processing
Processing
Outward
RKC Processing
Annex F Drawback

Processing of
Goods for home
use

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Concept of Inward Processing

• “Inward Processing” means the Customs procedure under which
certain goods can be brought into a Customs territory
conditionally relieved from payment of import duties and taxes,
on the basis that such goods are intended for manufacturing,
processing or repair and subsequent exportation. （RKC）
• Basic process of inward processing

Processing
Export the
Registration Import the
Processed Discharge
for IP Materials
Product

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Framework of Inward Processing in RKC

Field of
Definitions Principle
application

Placing goods Stay of the goods Termination of

under inward in the customs inward
processing territory processing

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duties and
Inward Processing(RKC) taxes

• Goods admitted for inward processing shall be afforded total conditional

relief from import duties and taxes. However, import duties and taxes may be
collected on any products, including waste, deriving from the processing or
manufacturing of goods admitted for inward processing that are not
exported or treated in such a way as to render them commercially valueless.
（RKC, Field of application, Standard 2）

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rates of
Inward Processing(RKC) yield

• Where goods admitted for inward processing are to undergo

manufacturing or processing, the competent authorities shall fix or
agree to the rate of yield of the operation by reference to the actual
conditions under which it is effected. The description, quality and
quantity of the various compensating products shall be specified upon
fixing or agreeing to that rate. （RKC, placing goods under inward
processing, Standard 12）

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"compensating products" means the products

Inward Processing(RKC) resulting from the manufacturing, processing or
repair of goods for which the use of the inward
• Where the inward processingprocessing
operations : procedure is authorized;
- relate to goods whose characteristics remain reasonably constant;
- are customarily carried out under clearly defined technical conditions; and
- give compensating products of constant quality;
the competent authorities should lay down standard rates of yield applicable to
the operations.（RKC, placing goods under inward processing, Recommended
Practice 13 ）

rates of
yield
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Identification
Inward Processing(RKC)
• The requirements relating to the identification of goods for inward
processing shall be laid down by the Customs.
• In carrying this out, due account shall be taken of the nature of the
goods, of the operation to be carried out and of the importance of
the interests involved. （RKC, placing goods under inward processing,
Standard 14）

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Inward Processing(RKC) Termination

• Upon request by the person concerned, the competent authorities shall

authorize the re-exportation of the goods in the same state as
imported, with termination of inward processing.
（RKC, Termination of inward processing , Standard 21）
• Provision shall be made for terminating inward processing in respect of
goods lost as a consequence of the nature of the goods, insofar as the
compensating products are exported, provided that such loss is duly
established to the satisfaction of the Customs.
（RKC, Termination of inward processing , Standard 24）

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Inward Processing(RKC) equivalent

goods

• The products obtained from the treatment of equivalent goods

should be deemed to be compensating products for the purposes
of this Chapter (setting-off with equivalent goods) .
（RKC, Termination of inward processing , Recommended Practice 25）

• 视频

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