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< Change of processing trade contract record >

Change of recorded product name, specifications, amount, quantity, material quantity applied per unit, loss rate, commodity code, delivery date and valid period, the enterprises should apply for change of contract record at competent customs.

In addition, change of bank deposit account should also be processed at the same time. If necessary, approval of the original approving authority is needed.

■ Change process of processing trade contract

Change of processing trade contract should be within the valid period of the contract, and process approval procedures at Foreign Trade and Economic Commission.

To simplify the contract change procedures, with the unchanged trade nature and types of commodities and change amount of contract less than 10,000 dollars, extension time less than 3 months, the enterprises can process change procedures directly at customs and Bank of China. No need to process approval procedures at Foreign Trade and Economic Commission.

Change process as below:

1)Application for changing (including electronic data and written documents)

2)After review, change accounting or process change account procedures at bank.

3)By the mode of actual transfer, for increasing the amount, the enterprises still need to make up the difference.

4)Print materials of change and issued with manuals.

■ Notes for contract changing

ㅇProcessing trade contract with the mode of non-counterpart processing with imported materials, with the increased number of export finished products before declaration, material quantity applied per unit of corresponding imported materials and parts should also be increased.

ㅇActual material quantity applied per unit of contract changes, enterprises should process change procedures at customs before the export of the last finished product.

ㅇExported or imported contract shall not apply for changing or deleting its commodity code, product name, specifications and units of measurement.

ㅇApplying for contract extension of enterprises should be w​​ithin the contract valid period.

ㅇChange of expiration date (extension) shall not exceed twice, and normally not exceed 6 month.

< Write-off of processing trade manuals>

Processing trade write off refers to after the strict verification by the customs, the manuals are logged off from the customs administration account books.

In other words, all relevant procedures of processing trade contract management are finished, and to write off the manuals to represent the supervision of processing trade is released.

■ Write-off declaration of enterprises

Processing trade write off declaration refers to after the processing trade contract fulfilled, or terminated for other reasons, disposes products not yet exported and applies for write off within the prescribed period at the competent customs.

Within the valid period of manuals, business enterprise can process import materials and parts, processing and re-export. The last processing trade export finished product or within30 days after the expiration of processing trade manuals, write off procedures should be applied to the customs.

Early termination of contract signed by business enterprises and foreign enterprises must be applied to customs for write off procedures within 30 days from the date of contract termination.

As business enterprises applying for write off, the declaration of import materials and parts, export of finished products, scraps, remaining materials, defective products, by-products and material quantity applied per unit must be truthful, and submit processing trade manuals, special Customs Clearance certificate of processing trade and other documents required by customs.

■ Write off process of customs

With complete and effective submitted documents, the customs will accept the application of write off.

Customs write off contains paper form and electronic data form. If necessary, customs will inspect at enterprises, with active cooperation from enterprises.

Customs process write off procedures within 30 days after acceptance of application. For special circumstances to require an extension, approved by direct customs or the Commissioner under the jurisdiction of customs, 30 days can be extended.

Processing trade bonded import materials and parts or finished products are transferred into domestic sales, according to effective materials of domestic sales approval issued by competent authorities, the customs will collect taxes and interests for bonded imported materials and parts.

For imported materials and parts within the scope of restricted products of the State, the enterprises should also submit import permit to the customs.

For processing trade business enterprises sending back imported materials and parts to overseas customers, the customs shall process write off procedures in accordance with documents sending back.

For processing trade business enterprises giving up the products, the enterprises shall process giving up procedures for imported materials and parts in accordance with the regulations of customs. The customs shall process write off procedures according to related documents.

As business enterprises applying for write off, the declaration of import materials and parts, export of finished products, scraps, remaining materials, defective products, by-products and material quantity applied per unit must be truthful, and submit processing trade manuals, special Customs Clearance certificate of processing trade and other documents required by customs.

If the processing trade manuals are lost, enterprises should give declaration to the customs in time and take relevant responsibility. In accordance with relevant regulations, the customs will write off processing trade manuals.

After write off, with the consent of closing of the processing trade manuals, the customs will review and issue "Notice of write off closing" to business enterprises.

After customs write off and closing, the enterprises with guarantee will be released.

The certificates of processing trade record and write off, the customs will retain for 3 years since the date of processing trade manuals write off and closing.

Processing trade enterprises in the events of separation, merger, bankruptcy, etc., should declare for relevant customs formalities.

If processing trade goods are stored and sealed by people's court or relevant administrative law enforcement departments, the processing trade enterprises should declare to the customs within 5 days from the event occurs.

■ Write off procedures of processing trade manuals

☉ Process

Declaration (including eclectic data and paper form) ⇒review and Inspection ⇒losing ⇒processing bank deposit account (for actual transfer, the bank will refund; for idling, the bank will write off deposit account) ⇒Closing.

☉ Processes and materials providing

1. Filling in Application Form for write off, and pre-input for write off.

Actual material quantity applied per unit of processing is inconsistent with the material quantity applied per unit of contract record. The enterprises should change material quantity applied per unit before write off procedures.

2. Application Form for write off and submission of relevant materials

Below materials should be submitted for write off application:

ㅇPre-input application form for write off

ㅇSealed write off application form and processing trade manuals (including sections, and continuations);

ㅇEffective declaration materials consistent with registration column of import and export manuals;

ㅇOther documents:

①Materials can fully explain the export material quantity applied per unit , such as cutting diagram;

②After the review of contract, if there are recoverable guarantees, refund application can be submitted;

③If the remaining materials need to give up, application for giving up should be submitted;

④If there are payable taxes, commercial invoice (Invoice) should be provided. If there is need of permit or quota restriction, valid permit or quota certificated should be provided;

⑤If there are transit process in the contract, application form for transit should be provided;

⑥Other materials required by customs.

3. Customs review and processing

After accepting the materials, the competent customs will review the relevant materials. During the process of write off, if needed, the competent customs can process on-site inspection for enterprises. After review and closing, with "Bank deposit account write off notice" issued by the customs, the enterprises can process deposit account write off at designated bank (Bank of China).4. Procedures of bank

According to the relevant circumstances, the bank will seal and issue "Bank deposit account write off notice".

5 .Customs contract write off Enterprises with "Bank deposit account write off notice" issued by bank can go to the customs for contract write off procedures.

After closing of the contract, the competent customs will issue" Processing trade contract write off and closing notice".