What is the meaning of the customs bonding system?

Bonded zone, is a specific area approved by the State Council and established within China, which is under the supervision of Customs. Between the bonded area and the non-bonded area, segregation facilities are set up. Customs in accordance with the provisions of the law on the entry and exit of the bonded area of goods, means of transportation, personal belongings to implement supervision. Imported goods can be temporarily deposited in the bonded warehouse of the bonded zone without paying import duties, and then exported without paying export duties, but import duties must be paid when imported into the mainland Chinese market. Currently, China*** has established 15 bonded zones: Shanghai Waigaoqiao Free Trade Zone, Tianjin Port, Shenzhen Futian, Shenzhen Shatoujiao, Dalian, Guangzhou, Jiangsu Zhangjiagang, Qingdao, Ningbo, Fuzhou, Xiamen, Shantou, Haikou, Shenzhen Yantian Port and Zhuhai Bonded Zone. The Customs implements a declaration system combining a filing system and a customs declaration system for the inbound and outbound goods of enterprises in bonded zones, i.e., a filing system is implemented for inbound materials, re-exported goods, warehoused goods required for processing trade in bonded zones and outbound goods transported out of the bonded zones; a filing system is also implemented for the inbound and outbound goods between bonded zones and non-bonded zones, and for the enterprises in the zones to import a reasonable amount of machinery and equipment for their own use, management equipment, office supplies as well as a reasonable amount of goods required for their staff's own use. Dutiable commodities required by staff for self-use in reasonable quantities, a customs declaration system will be implemented.　　◆ Supervision of Goods in Bonded Zones According to the Customs regulations, goods in bonded zones can be transferred and assigned between enterprises in the zones, and both parties shall file with the Customs on the matters of transfer and assignment; re-exported goods in bonded zones can be subjected to simple processing, such as grading, selecting, refreshing the signs, and changing the forms of packaging, etc., in the warehouses in the zones or in other places in the zones.　　◆ Customs declaration of goods imported into the bonded zone General goods can be imported into the bonded zone in two ways, one is directly from abroad, and the other is from non-bonded zones. Goods imported into the bonded area from non-bonded areas shall be handled as exported goods; for machines, equipment, infrastructure materials and articles imported into the bonded area from non-bonded areas for the use of the area, the user shall provide the Customs with a list of the goods or articles, which shall be released after the Customs' inspection. If the goods or articles are imported, the import tariff, value-added tax and consumption tax already paid shall not be refunded.　　◆ Customs declaration of goods shipped out of the bonded zone Goods entering the non-bonded zone from the bonded zone shall be handled as imported goods, which shall be supervised by the Customs in accordance with the national regulations on import and export management. If the goods in the bonded area need to be imported or exported from the ports of the bonded area, or if the goods in the bonded area are to be transported to another bonded area, a written application should be submitted to the Customs in advance, and after approval by the Customs, it shall be handled in accordance with the Customs' transshipment transportation and related regulations.　　◆ Management of Import and Export of Goods by Manufacturing Enterprises in Bonded Areas For the import and export of goods by manufacturing enterprises in bonded areas, the Customs implements the following regulatory norms: - Manufacturing enterprises in bonded areas shall set up separate specialized books of accounts on the importation, storage, export sales, etc. of their products and materials and parts for the Customs to verify. -The materials and parts imported by the production enterprises shall be processed and sold abroad within one year from the date of importation, and may be extended to the Customs for one year if it exceeds one year. -Production enterprises imported machinery and equipment and materials, parts, due to production and processing needs, can be transferred to each other in the bonded area, trading, borrowing, but must be filed with the Customs within 30 days. Production enterprises imported materials, parts, such as the need to transport to non-bonded areas commissioned the processing of finished products for export, shall apply to the Customs for registration and record in advance, approved by the Customs before proceeding. Processed products out of the zone should be commissioned within 30 days after the completion of the implementation of the contract for processing, to the Customs for write-off procedures, and the product and the remaining materials, pieces, according to the specified period back to the bonded area. Non-bonded materials, parts, transported into the bonded area for processing, as from the non-bonded area into the bonded area of export goods for customs procedures. If there is a need to use and consume imported materials and parts, they should be approved by the Customs in advance and go through import tax procedures.　　◆ Supervision of Processing Trade Goods in Bonded Areas - Imported materials and parts required by processing enterprises in the bonded area shall be submitted to the Customs for filing procedures for entering and leaving the bonded area. -Processing enterprises in the bonded area are required to apply to the Customs for recordation of the imported materials and parts required to be imported into and out of the bonded area. -Processing enterprises in the bonded area are required to apply to the Customs for recordation of the exported materials and parts required to be imported into and out of the bonded area. If a processing enterprise in the zone transports to a non-bonded zone the manufactured products, secondary products or marginal residues generated in the course of processing in the zone, it shall apply to the Customs for import and export declaration formalities and pay taxes in accordance with the law. If all the manufactured products processed by the processing enterprises in the zone with materials and parts imported from abroad are sold to non-bonded zones, the Customs shall levy taxes on the basis of imported manufactured products. When the finished products processed with materials and parts imported from abroad are sold to non-bonded zones, the Customs shall levy taxes on the finished products in accordance with the materials and parts imported from abroad, and the Customs shall levy taxes on the imported finished products if the names, quantities and values of the materials and parts imported from abroad are declared inaccurately. -Customs does not implement the processing trade bank guarantee account system for processing enterprises in the bonded area for import processing and contract processing business.　　◆ Supervision of Consigned and Entrusted Processing of Goods in Bonded Zones Processing enterprises in bonded zones entrusting non-bonded zone enterprises or accepting entrustment from non-bonded zone enterprises to carry out processing business shall be approved by the Customs in advance and meet the following conditions: - Having production sites in the zone and having formally carried out the processing business; - Commissioning non-bonded zone enterprises to carry out processing business. The main processes should be carried out in the zone; - The processing business entrusted to enterprises in non-bonded zones for a period of six months, there are special circumstances that require an extension of the period, should apply to the Customs for an extension of time, the extension period of six months; - The products processed in non-bonded zones should be transported back to the bonded area, need to be exported directly from non-bonded zones should be handled by the Customs for write-off procedures; - The acceptance of non-bonded zone should be approved in advance and meet the following conditions Accept non-bonded zone enterprises commissioned processing, by the processing enterprises in the region for commissioned processing materials, parts of the Customs for the record, commissioned materials, parts and products should be commissioned to process with the material, parts and products of enterprises in the region to establish separate books and deal with them separately. The processed products shall be shipped back to the non-bonded enterprises and canceled by the processing enterprises in the zone to the Customs.　　◆ Management of Imported Goods and Re-exported Goods by Foreign Trade Enterprises in Bonded Zones - Foreign trade enterprises in bonded zones may operate import and export trade and re-export trade within the zones, and act as agents for enterprises in the bonded zones and administrative organizations in the import of materials for their own use, materials and pieces for production and exported products, but they may not act as agents for enterprises in non-bonded zones in the import of materials, or in the acquisition of non-bonded zones for export of products. -Foreign trade enterprises as an agent for domestic enterprises import and export of goods, the Customs and Excise Department with foreign trade enterprises and production enterprises signed agency contracts and foreign contracts and other relevant documents for inspection and release. When the imported goods of a foreign trade enterprise are delivered to a production enterprise in the bonded area for production and processing, when a foreign trade enterprise acts as an agent for a production enterprise in the bonded area in exporting its products, and when the foreign trade enterprises transfer the above goods to each other, they shall apply to the Customs for the procedures of carry-over and write-off on the basis of the contracts signed by the two parties and the relevant documents.　　◆ Supervision of Incoming and Outgoing Goods between Bonded Areas and Overseas Countries According to the regulations, the Customs implements simple and effective supervision of inbound and outbound goods in bonded areas, and inbound and outbound goods shall be filed with the Customs by the consignee or consignor of the goods or their agents.　　Import and export quotas and licenses are generally not applied to the management of inbound and outbound goods. And the import tariffs and import environment value-added tax, consumption tax involved, unless otherwise provided for by laws and administrative regulations, shall be handled in accordance with the following provisions: - Machines, equipments and other infrastructural materials required for productive infrastructure projects in the zone shall be exempted from tax; - Production and management equipments for self-use of enterprises in the zone and a reasonable number of Raw materials, spare parts, components and packaging objects required by enterprises in the zone for the processing of export products shall be exempted from tax. Maintenance spare parts required by the administrative organizations in the zone for their own use of a reasonable amount of management equipment and office supplies and machines; - Re-exported goods and goods stored in the bonded zone, in accordance with the management of bonded goods.