Importation of steel materials can no longer enjoy bonded treatment under processing trade from 1 January 2015
Importation of steel materials can no longer enjo...
China Tax Alert - Issue 26, September 2014
Recently, the Ministry of Finance, General Administration of Customs and State Administration of Taxation jointly issued ‘the Notice on Revoking the Bonded Treatment for Steel Materials Imported under Processing Trade’ and‘the Supplementary Notice on Revoking the Bonded Treatment for Steel Materials Imported under Processing Trade’ to revoke the bonded treatment for the steel materials under the 78 tariff codes since 1 January 2015. We recommend that enterprises importing steel materials under the processing trade regime consider the potential impacts that the changes could bring to their operations and develop a plan to mitigate the effects even if the steel materials they currently import are not within the 78 tariff codes. We recommend that those enterprises importing steel materials within the 78 tariff codes arrange an importation batch before 31 Dec 2014 to reduce unnecessary losses.