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Announcement of Shanghai Customs on Developing Bonded Display Trade Business in China (Shanghai) Pilot Free Trade Zone

china-shftz.gov.cn Updated:2017-07-24

No.9, 2014

To advance the construction of China (Shanghai) Pilot Free Trade Zone (hereinafter referred to as the “Pilot Zone”), in accordance with the Customs Law of the People’s Republic of China and Notice of the State Council on Promulgation of the Framework Plan for China (Shanghai) Pilot Free Trade Zone (Guofa [2013] No.38), upon approval by the General Administration of Customs, matters about developing bonded display trade business in the Pilot Zone are hereby announced as follows:
I. Bonded display trade business means enterprises registered with the customs in the Pilot Zone (hereinafter referred to as “enterprises in the Zone”) conducting business activities of bonded display trade in or out of the Pilot Zone.
II. Enterprises in the Zone conducting bonded display trade shall set up a computer management system in line with the customs supervision requirements, able to network with the China (Shanghai) Pilot Free Trade Zone Customs Supervision Informatization System (hereinafter referred to as the “Iinformatization System”) via the data exchange platform or other computer network according to the attestation mode prescribed by the customs, and submit relevant data that can satisfy the customs supervision requirements.(For specific networking conditions and handling formalities, see Announcement of Shanghai Customs No.5, 2014)
III. Where enterprises in the Zone conduct bonded display trade in the Pilot Zone, the competent customs in the Pilot Zone (hereinafter referred to as the “competent customs”) shall supervise goods according to relevant provisions of the special area under customs supervision. 
IV. Enterprises in the Zone in need of conducting bonded display trade in the special display place in the comprehensive office area inside the planned area of the Pilot Zone and outside of enclosure (hereinafter referred to as the “comprehensive office area”) and in other place outside of the Zone shall provide guarantee of full tax payment.
Enterprises in the Zone shall handle formalities for displaying goods outside of the Zone with the competent customs via the Informatization System, and shall make the following submissions:
1. documents such as display contracts, agreements, invitation letters or booth confirmation letters;
2. bill of goods to be displayed outside of the Zone;
3. deposit or letter of guarantee; and
4. other submissions as required by the customs.
V. Enterprises in the Zone conducting bonded display trade outside of the Zone shall strictly manage goods on display, and shall not use such goods for other purposes than display activity.
Conducting bonded display in the comprehensive office area, enterprises in the Zone shall submit the detailed sales and inventory record and deposit place of goods to the customs every 14 days; conducting bonded display in other place outside of the Zone, enterprises in the Zone shall make submissions every day.
After the end of goods display outside of the Zone, enterprises in the Zone shall handle formalities for goods returning to the Zone via the informatization system, at most 6 months from the day of goods leaving the Zone. In need of extension for special cases, enterprises in the Zone shall complete extension formalities with the competent customs, extension made 3 times at most, each extension not exceeding 6 months. At the expiration of extension, goods shall be transported back to the Zone or subject to the import duty formalities. 

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