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Notes
for Selling processing trade tax-protection
materials and components in the domestic
market
I.
The country strictly controls the activity
of domestic sales in processing trade. The
normal domestic sales of an enterprise¡¯
product should conduct a contract
importation for domestic sales in a general
way. The domestic sales of processing trade
tax-protection materials and components must
comply with one of the following six
conditions specified by the National
Ministry of Foreign Trade and Economic
Cooperation and must apply before the
specified date of reselling finished
products.
II.
For one contract of selling processing trade
tax-protection materials and components in
the domestic market, it is allowed to apply
only once.
Six
conditions are as follows£º
1¡¢The
foreign businessman has negotiated with the
operation unit to require to stop the
execution of the original export contract,
and the operation unit can provide relevant
evidences. And in terms of price, etc., a
new export contract is hard to be signed any
more.
2¡¢Due
to the decline of international market
price, the operation unit will suffer
serious economic losses if it continues
executing the original export contract, and
can provide the agreement of stopping the
execution of the contract reached with the
foreign businessman.
3¡¢The
imported materials and spare parts have been
put into processing and use, but the quality
of processed finished products can not reach
the standard specified in the export
contract. And the operation unit can provide
the relevant certificate issued by the
export merchandise quality inspection
department or the domestic quality
supervision department.
4¡¢A
part of materials have been left due to the
improvement of processing skills and unit
cost reduction, or a reasonable leftover
bits and pieces of materials have been
produced as a result of technical
requirement in processing. And the operation
unit can provide the related certificate of
the department in charge of manufacturing
industry.
5¡¢The
export contract can not continue to be
executed because of force majeure.
6¡¢There
are other proper reasons for the requirement
of changing into domestic sales.
III.
If the materials and components for changing
into domestic sales are involved with the
import permission or record management, the
procedure can only be started after the
import permission or record certificate has
been obtained.
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