Announcement of Shanghai Customs on Developing Financing Lease Business in China (Shanghai) Pilot Free Trade Zone
With a view to pushing forward the construction of the China (Shanghai) Pilot Free Trade Zone (hereinafter referred to as the Pilot Zone), and in accordance with the Customs Law of the People’s Republic of China and the Notice of the State Council on Printing and Distributing the Framework Plan of the China (Shanghai) Pilot Free Trade Zone (SC G  No.38), upon approval by the General Administration of Customs, matters about developing financing lease business in the Pilot Zone are hereby announced as follows:
1. For conducting financing lease business, the following requirements shall be satisfied:
(1) Enterprises established in the Pilot Zone for conducting financing lease business or project subsidiaries established in the Pilot Zone by enterprises conducting financing lease business (hereinafter together referred to as the “financing lease enterprises”);
(2) Qualification for financing lease business is obtained upon approval by relevant government authorities; and
(3) Formalities for registration of customs declaration agency is completed with the customs agency in the Pilot Zone.
2. A financing lease enterprise, when as a lessor renting out financing lease goods to a domestic or overseas lessee enterprise, shall complete declaration formalities with the competent customs in the Pilot Zone (hereinafter referred to as the “competent customs”) according to relevant regulations on supervision over goods in the customs special supervision areas.
3. Where a financing lease enterprise as a lessor rents out financing lease goods to a domestic lessee enterprise, the latter shall submit the following materials to the customs for declaration:
(1) Documents of relevant government departments for approving the purchase of financing lease goods;
(2) For lease of import out of the zone in the mode of tax reliefs, upon examination by the customs, relevant documents of tax reliefs shall be submitted;
(3) Permits; and
(4) Other materials to be submitted as required by the customs.
4. The procedure of tax collection on financing lease goods is subject to the relevant provisions on lease of imports in the Import and Export Customs Duty Regulations of the People’s Republic of China, and the Procedures of the People’s Republic of China for Administration of Import & Export Goods Customs Duty Collection (GAC Decree No.124)
5. Domestic lessee enterprises, when handling import guarantee for financing lease goods, may apply for using the Guarantee for Financing Lease Goods in the Pilot Zone (see the annex), and go through relevant formalities with the competent customs.
6. Financing lease enterprises shall every quarter file matters about lease and rent payment of financing lease goods and such other things to the competent customs for the record.
7. Domestic lessee enterprises shall, within 30 days from the expiration of lease of financing lease goods, complete formalities relating to purchase and continued lease in accordance with relevant provisions on lease of import goods in the Procedures of the People’s Republic of China for Administration of Import & Export Goods Customs Duty Collection (GAC Decree No.124)
This announcement shall be effective as of the date of promulgation.
It is hereby announced.
Annex: Guarantee for Financing Lease Goods in the Pilot Zone
April 21, 2014