1. What is an "International After-Sales Service Center"?

Imagine you bought an imported device. After using it for a while, it malfunctions and needs to be sent back to the original factory for repair. Under the traditional method, this device has to pay import duties and value - added tax before it can enter the country for repair. After repair,Export tax refundThe process is cumbersome and requires significant capital. However, bonded maintenance operations act like an "international after-sales service center" established domestically for enterprises, making the repair process simple and efficient.

Specifically,The bonded repair businessIt refers to the business activity where enterprises, outside the special customs supervision zones, transport problematic goods or means of transport from overseas into the country in a "bonded" manner for testing and repair before re-exporting them. Under this model, goods awaiting repair and materials used for repair can temporarily be exempt from import duties, significantly reducing the financial pressure and operational costs for enterprises.

2. Who is eligible to establish this "International After-Sales Service Center"?

Not all enterprises can carry out the bonded repair business. The customs has clear requirements for this:

• Credit threshold: The enterprises credit status cannot be that of a dishonest enterprise. The higher the customs credit rating, the more favorable it is.
• Hardware conditions: There is a need for special sites and equipment, and the ability to manage materials in all process of repair by zones.
• Software requirements: Establish management systems and computer management systems that meet the customs supervision requirements.
• Other conditions: Meet other conditions required by customs supervision, such as environmental protection requirements, etc.

An electronic equipment manufacturer I served specially renovated a 2000 - square - meter repair workshop to carry out bonded repair business, divided it into areas for goods to be repaired, in - repair goods, finished products, and waste materials, and installed a WMS system to track the flow of materials throughout the process. Finally, it successfully passed the customs inspection.

3. Which businesses can enjoy this "privilege"?

The bonded repair business is not omnipotent. The customs has strict restrictions on its scope of application:

• Allowed by laws and regulations: For example, the repair of common electronic products and mechanical equipment.
• Approved by the State Council: Such as the repair of large - scale equipment like aircraft and ships.

It should be noted thatgoods involving national import or export bans or restrictionsand repair businesses that may cause environmental pollution cannot enjoy the bonded policy. Once a customer wanted to carry out the bonded repair of waste batteries, but was rejected by the customs due to environmental protection issues.

IV. How does customs regulate this "special business"?

Customs supervision over bonded maintenance can be described as "both strict and flexible":

Electronic account book management

Customs will establish dedicated electronic ledgers for eligible bonded maintenance enterprises, creating electronic records that include information such as goods awaiting repair, repaired goods, and irreparable goods. This ledger serves as the "maintenance business ID card" for the enterprise, with all inbound and outbound records required to be documented on it.

Flexible write - off cycle

Generally, the verification cycle of the bonded repair account book does not exceed one year. However, for the repair of large - scale equipment such as aircraft and ships, it can be determined according to the actual validity period of the contract, which is very user - friendly.

Clear inventory requirements

Enterprises should conduct a comprehensive inventory at least once a year and truthfully declare information about old and damaged parts replaced during the repair. The customs will determine the frequency of on - site inspections based on the enterprises credit status and risk situation. Enterprises with good credit will have a much lower inspection frequency.

V. The "Correct Posture" for Customs Clearance of Goods

The customs declaration for bonded repair goods has special requirements, and it is easy to make mistakes if not paying attention:

Select the right supervision method

• Goods awaiting repair entering the country: "Bonded Maintenance (1371)"
• Import of materials for maintenance: "Processing with imported materials" or "Processing with supplied materials"
• The replaced old or damaged parts are re-exported: "Re-export of imported leftover materials" or "Re-export of incoming leftover materials".

Keep the disposal principles in mind

All materials generated from bonded maintenanceIn principle, all should be re - exported. Goods that truly cannot be re - exported shall not be sold domestically and must be disposed of by destruction in accordance with Announcement No. 33 of the General Administration of Customs in 2014. A company once sold the replaced old parts to a waste station without permission and was punished by the customs, losing more than it gained.

There are rules for the handling of surplus materials.

The remaining materials of bonded - imported maintenance parts shall be handled in accordance with the relevant regulations of processing trade. They can be carried forward for use or re - exported.

VI. Practical suggestions for enterprises

Based on my 20 - year foreign trade experience, here are some suggestions for enterprises that want to carry out bonded repair business:

• Evaluate first and then invest: Not all maintenance businesses are suitable for the bonded mode. Factors such as business volume and capital occupation should be comprehensively considered.
• Credit construction should come first: The customs credit rating directly affects the tightness of supervision. Enterprises should pay attention to maintaining their credit at ordinary times.
• System construction should be in place: A complete ERP/WMS system is the infrastructure for carrying out bonded maintenance.
• A professional team is crucial: It is recommended to equip a professional customs affairs team familiar with processing trade and bonded business.
• Take the initiative to communicate to avoid detours: Communicate more with the competent customs to understand the latest regulatory requirements.

The bonded maintenance business is like opening a convenient door to "international after-sales service" for enterprises. However, to fully leverage this policy benefit, it is essential to thoroughly understand customs supervision requirements and establish a standardized internal management system. We hope this article will help our foreign trade colleagues better comprehend and utilize this policy, making their international maintenance operations smoother and more efficient!