Breaking Barriers: Enterprise Group Processing Trade Ushers in a New Era of Supervision

Dear friends in the foreign trade circle, today I want to share with you a piece of "applaudable" good news for processing trade enterprise groups—the initiative launched by the General Administration of Customs.Enterprise Group Processing Trade Supervision Model. It's like issuing a "family-wide pass" to corporate groups, allowing production factors to flow freely within the conglomerate and truly achieving the convenience of "speaking as one family without division."

As a veteran with 20 years of experience in foreign trade, I have witnessed too many companies being "tied hand and foot" due to the constraints of traditional regulatory models. This new model can be described as another masterpiece of the customs' "streamlining administration, delegating powers, and improving services" reform, specifically tailored for processing trade enterprises operating under a group structure.

Policy Dividends: Five "Gift Packs" Await Your Unwrapping

What tangible benefits can this new model actually bring to enterprises? Let's take a look at the five "policy packages" delivered by customs:

• Free flow of bonded materials: Enterprises within the group can flexibly allocate materials through surplus material transfer or deep processing transfer, eliminating the worry of "materials lying idle at Factory A while Factory B urgently needs them."
• More autonomous goods storage: As long as the goods are stored in customs-approved facilities, they can be freely stored as if in "one's own backyard," allowing for more flexible warehouse management.
• More convenient material substitutionUnder compliant regulatory conditions, group enterprises can independently decide on material substitution, boosting production efficiency!
• Simplified outsourcing proceduresOutsourcing within the group no longer requires filing formalities, and even guarantees are waived for full-process outsourcing, saving both time and money.
• Equipment sharing is no longer a dream: Non-duty equipment under the supervision period can be "shared" within the group, significantly improving equipment utilization.

Eligibility Requirements: See if Your Group Qualifies

Such favorable policies are, of course, not available to all enterprises. Customs has set several "thresholds" to ensure that the policy benefits are directed to enterprises that truly need them:

• Credit rating requirementsThe lead enterprise must be a Customs Advanced Certification Enterprise, and member enterprises cannot be discredited.
• Industry priorityStrategic emerging industries such as information technology, artificial intelligence, and biopharmaceuticals are given preference.
• Management standardsEnterprises must have a sound information system to ensure transparent and traceable goods and data flows.
• Commodity restrictionsProcessing trade involving special commodities such as tariff-quota agricultural products and crude oil is temporarily excluded.

: Professional testing of suspicious samplesCredit ratingis key! Interested enterprises are advised to first check their customs credit status and seek professional credit cultivation if necessary.

Application Process: A Step-by-Step Guide to "Getting On Board"

If your group meets the qualifications, the next step is to proceed with the application process. Don't worry, I'll now pass on the "clearance guide" to you:

Step 1: Prepare Documents

• Complete the Enterprise Group Processing Trade Supervision Mode Filing Form
• Prepare power of attorney for all member enterprises (must be signed by the legal representative and stamped with the official seal)
• Collect relationship proof materials such as shareholding certificates of member enterprises

Step 2: Submit Application

Submit the application to the local customs authoritylead enterpriseHeres a tip: It is recommended to communicate with customs in advance to understand local specific requirements, which can save effort.

Step 3: Establish Manual (Account) Book

After approval, enterprises can choose one of two methods:

• Each member enterprise shall establish a manual (ledger) separately, with the remark "Enterprise Group" marked.
• One enterprise uniformly establishes manuals (accounts) to coordinate the groups processing trade business

The choice depends on the groups actual operational model. One of our clients chose the unified method, saving 30% in customs costs annually.

Step 4: Dynamic Management

When a member company is added or withdrawn, it must promptly report the change to customs. This is similar to maintaining a "family household register," where updates must be made in a timely manner for any personnel changes.

Risk Warning: Avoid These "No-Go Zones"

While enjoying the convenience, it is also important to comply with the rules. The following situations may lead to disqualification:

• Changes in enterprise conditions that no longer meet the requirements
• Failure to comply with customs procedures for bonded goods transfer
• Incomplete preservation of relevant documents and data

Recommend companies to establishInternal supervision mechanism, conduct regular self-inspections to ensure compliance. Our team has developed a compliance management system for enterprise group processing trade, which has helped many companies avoid risks.

Practical Advice: How to Maximize Policy Benefits

Based on our experience serving numerous enterprise groups, here are some practical suggestions:

• Resource integration: Establish an internal resource sharing platform to monitor materials and equipment status across factories in real-time
• Process reengineering: Redesign customs and logistics processes to fully leverage policy advantages
• System upgrade: Invest in building matching information systems to ensure data traceability
• Talent development: Cultivate versatile professionals who understand processing trade and are familiar with new policies

After adopting the new model, a new energy enterprise group saved over 5 million yuan annually in logistics costs through optimized material allocation, with equipment utilization increasing by 40%. This directly demonstrates the policy dividends.

Future Outlook: New Opportunities for Group Operations

With changes in the global economic landscape and industrial chain restructuring, group operations for processing trade enterprises will become a trend. This customs reform initiative precisely aligns with this trend.

For enterprise groups looking to expand into international markets, I recommend:

• Incorporating the new supervision model into group strategic planning
• Considering adopting the same model when expanding into emerging markets like Southeast Asia
• Monitoring potential follow-up supporting policies from customs

Remember, in import and export trade,Policy equals productivity. Those who first comprehend and effectively utilize policies will gain competitive advantages.

If your enterprise group is considering applying for this model or encountering operational issues, feel free to reach out. My 20 years of foreign trade experience tells me: in import/export, leaving professional matters to professionals often yields twice the result with half the effort.