Shanghai has adopted a regulation on promoting the development of bonded maintenance business in the city's Pudong New Area as it strives to align with high-standard international rules to enhance high-level openness.

As China's first local policy regulating the sector, the regulation was approved during the 17th session of the Standing Committee of the 16th Shanghai Municipal People's Congress on Nov 28 and will take effect on Jan 1, 2025.

It underscores the significance of bonded maintenance services in integrating the manufacturing and service industries, suggesting that this new business format in foreign trade is poised to elevate processing trade and propel optimization and upgrading of the industrial structure.

The regulation, comprising 20 articles, adheres to high-standard international economic and trade rules while fostering innovation in bonded maintenance services. While actively addressing enterprise concerns and expectations, it coordinates openness and security and balances efforts in mitigating risks and promoting development.

Key highlights include the expansion of the business scope to support the optimization and upgrading of service formats. The regulations allow for flexibility beyond the national provisions for bonded maintenance services in designated areas, enabling enterprises to conduct maintenance activities in comprehensive bonded zones, including pilot projects for repair services beyond the catalog items. Moreover, specific provisions cater to medical equipment, large equipment like aircraft, and electronics for bonded maintenance services outside supervised customs areas and free trade zones.

The regulation also establishes clear requirements for business applications and standardizes application procedures to guide enterprises in orderly conducting bonded maintenance services. It outlines common conditions enterprises must meet in terms of production facilities, business scope, production qualifications, technical personnel, and business management plans.

Additionally, environmental protection responsibilities are underscored to prevent ecological risks, emphasizing waste reduction, waste management documentation, and pollution prevention in the transportation and disposal of solid waste.

To ensure effective oversight, the regulation mandates the establishment of a robust monitoring system to delineate supervisory responsibilities among relevant authorities.