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Outward processing business in China

<Outward processing business>


What is the outward processing?


Outward processing refers to entrusting specific processing to trade enterprises and sending back processed products within the prescribed period for re-export due to limited production processes of processing trade enterprises, after approved by the customs and completed relevant formalities,



Conditions for outward processing


Permission of customs


Bonded materials and parts which are entrusted to other factories for processing is a certain risk for customs supervision. Therefore, enterprises must submit outward processing record application to the customs. The failure to record outward processing belongs to violation behavior and will receive a serious punishment from the customs.


Outward processing for specific processing Enterprises can only process outward processing for specific processing.

The specific processing refers to other processing except for major processing. There is no clear standard for the scope and boundary of major processing. Customs generally is based on the characteristics of each industry and a comprehensive analysis of business conditions to identify whether it’s the main processing.


Compliance with deadline


Enterprises must complete outward processing within the "prescribed time".


Application for outward processing must be applied to customs within the expiration of registration manuals and the commissioned enterprises must return processed products to processing trade enterprises within the applied period.


Recycle of processed products and all materials and parts


Processed products must be returned to the original processing trade enterprises for final products for export.


So-called "Processed products " not only refer to the processed semi-finished products or finished products, but also including scraps generated in processing, the remaining materials and parts, defective products and imperfections, etc., which must be recycled by business enterprises.

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