Implementation of “Bank Guarantee Account” in China (Shanghai) Pilot Free Trade Zone

 2018-06-17  51



  • Document NumberAnnouncement No. 42 [2014] of the Shanghai Customs
  • Area of Law Banking & Finance China (Shanghai) Pilot Free Trade Zone
  • Level of Authority Local Regulatory Documents
  • Date issued12-01-2014
  • Effective Date12-01-2014
  • Status Effective
  • Issuing Authority Other Institutions of Shanghai Municipality



Announcement of the Shanghai Customs on Matters concerning the Implementation of “Bank Guarantee Account” in China (Shanghai) Pilot Free Trade Zone
(Announcement No. 42 [2014] of the Shanghai Customs)
To promote the building of China (Shanghai) Pilot Free Trade Zone (hereinafter referred to as “SHFTZ”), and enhance the information management efficiency of tax guarantee operations in SHFTZ, the Shanghai Customs promotes by steps the connection of the Customs' bank guarantee management data and bank management data in SHFTZ and conducts the operation mode of “bank guarantee account” in accordance with the Customs Law of the People's Republic of China, the Regulation of the People's Republic of China on Import and Export Duties, the Regulation of the People's Republic of China on Guarantees for Customs Affairs, and other relevant laws and regulations. The relevant matters are hereby announced as follows:
I. “Bank guarantee account” means an operation mode whereby an enterprise opens a guarantee account at a bank and provides bank guarantee when applying for conducting relevant tax guarantee operations at the competent Customs in SHFTZ (hereinafter referred to as the “competent Customs”) and the Customs conducts the unified management of bank guarantee operations by relying on the “Customs Regulatory Information System of China (Shanghai) Pilot Free Trade Zone” (hereinafter referred to as the “information system”).
II. The following Customs operations in SHFTZ secured with bank guarantee are uniformly subject to the operation mode of bank guarantee account, including: collective declaration upon separate transport, bonded commodity display, inspection outside SHFTZ, maintenance outside SHFTZ, outward processing, financing lease, bonded futures delivery and other operations that meet the relevant conditions.
III. A bank that concurrently meets the following conditions may apply for the adoption of the operation mode of bank guarantee account:
(1) It signs a strategic cooperation memorandum with the Shanghai Customs.
(2) It realizes bank guarantee data networking with the Shanghai Customs.
(3) It has no customs duty unpaid or in default, and can proactively cooperate with the Customs in implementing the measure of tax preservation or tax enforcement.
IV. An enterprise that concurrently meets the following conditions may apply for being subject to the operation mode of bank guarantee account:
(1) It has been registered at the Customs.
(2) It satisfies the requirements of the competent Customs, and is eligible for conducting the relevant operations at the competent Customs.
(3) It has no customs duties or overdue fine in default.
(4) It has no violation of law or regulation such as smuggling, violation of customs regulatory provisions, and the import or export of goods infringing intellectual property rights in the recent three years.
“Recent three years” means three years immediately before an enterprise applies to the Customs for being subject to the operation mode of bank guarantee account.
V. An enterprise may, at its discretion, choose to subject all or part of its businesses as set forth in Article 2 to the operation mode of bank guarantee account.
If a license should be provided in accordance with the restrictive provisions of the state on goods or articles entering or exiting the territory of China and the party fails to provide it, or under any other circumstance where a guarantee shall not be provided in accordance with laws or administrative regulations, or under any circumstance where bank guarantee shall not be provided in accordance with the relevant administrative provisions, the operation mode of bank guarantee account shall not apply.
VI. Where a bank opens a bank guarantee account to provide tax guarantee for enterprises, it shall send the electronic information on bank guarantee to the information system, issue bank guarantee in hardcopy at the same time, and the form of bank guarantee shall be joint and several liability guarantee.
The guaranty bank's performance of guarantee responsibilities does not exempt the enterprise's obligation to undergo other relevant formalities at the Customs.
VII. Where an enterprise applies for being subject to the operation mode of bank guarantee account, it shall submit the following materials to the competent Customs:
(1) An application for the recordation of the bank guarantee.
(2) Originals of bank guarantee documents in compliance with the format requirements for recordation.
(3) Other materials as required by the Customs.
The text requirements such as the format, signature and seal, and paper use of bank guarantee provided by the enterprise shall be consistent with those reported by the bank to the Customs for recordation.
The competent Customs shall, as of receipt of complete application materials of the enterprise, make a decision to approve guarantee recordation or not within three working days, and notify the enterprise in a timely manner. The Customs shall undergo recordation formalities at the same time if it approves recordation.
VIII. The guarantee period of guarantee operations shall not exceed the term of validity of the bank guarantee. After the tax guarantee period of goods in the relevant business operations expires, the enterprise shall undergo guarantee extension or write-off formalities in a timely manner.
Where the enterprise fails to undergo the bank guarantee extension, write-off or other formalities three months after the tax guarantee period of goods in the relevant business operations expires, the Customs shall suspend the application of the operation mode of bank guarantee account to the enterprise. After the enterprise fulfills the relevant obligation, the Customs may assess whether it may resume the application of the bank guarantee account to the enterprise.
IX. An enterprise may, based on its business requirements, apply to extend the guarantee period of the bank guarantee, and increase the guarantee amount of the bank guarantee. If the enterprise applies for modification, it shall submit the following materials to the competent Customs:
(1) A written application for the modification of bank guarantee.
(2) Originals of documents on the modification of bank guarantee issued by the bank.
(3) Other materials as required by the Customs.
Where a bank modifies the content of the aforesaid bank guarantee for the enterprise, it shall send the electronic information on the modification of the bank guarantee to the information system, and issue written documents on the modification of the bank guarantee.
The competent Customs shall make a decision to approve or disapprove the modification within three working days as of receipt of complete application materials of the enterprise, and notify the enterprise in a timely manner. The Customs shall modify the bank guarantee at the same time if it approves modification.
X. Where an enterprise applies for the advance close of the bank guarantee within its term of validity, it shall have concluded all guarantee operations under the item of bank guarantee, and offer close requirements to the bank. The bank shall send the electronic information on the close of bank guarantee to the information system, and issue documents on the close of the bank guarantee.
The enterprise shall submit the following application materials to the competent Customs:
(1) An application for the close of the bank guarantee.
(2) Originals of documents on the close of bank guarantee issued by the bank.
(3) Other materials as required by the Customs.
The competent Customs shall make a decision to approve or disapprove the close within three working days as of receipt of complete application materials of the enterprise, and notify the enterprise in a timely manner. The Customs shall close the bank guarantee at the same time if it approves the close thereof.
The bank guarantee closed in advance upon the enterprise's application shall not be reopened for use.
XI. Where a bank applies for the advance close of the bank guarantee within its term of validity, it shall require the enterprise to conclude the handling of all guarantee operations under the item of bank guarantee. If the enterprise fails to conclude the operations, the Customs shall not accept the application.
Where a bank applies for the active close of the enterprise's bank guarantee, it shall submit the following materials to the competent Customs:
(1) A statement on the bank's information.
(2) A statement on the enterprise's information.
(3) Originals of documents on the close of the bank guarantee as issued by the bank.
(4) Other materials as required by the Customs.
The bank shall, at the same time, send the electronic information on the application for the close of the bank guarantee to the information system.
The competent Customs shall make a decision to approve or disapprove the close within three working days of receipt of complete application materials, and notify the bank in a timely manner. The Customs shall close the bank guarantee at the same time if it approves the close thereof.
The bank guarantee closed in advance upon the bank's application shall not be reopened for use.
XII. Where an enterprise or bank violates any relevant law or regulation or has business risks, the Customs may actively close the bank guarantee.
After the circumstance of the enterprise or bank's violation of law or regulation disappears, and the corresponding business risks are controlled or relieved, the Customs may reopen the bank guarantee.
XIII. The information system will automatically close expired bank guarantee.
XIV. After the expiry of the bank guarantee, an enterprise shall undergo bank guarantee write-off formalities in a timely manner. If it fails to do so three months or more after the expiry, the Customs shall suspend the application of the operation mode of bank guarantee account to the enterprise. After the enterprise fulfills the relevant obligations, the Customs shall assess whether to resume the application of the bank guarantee account to the enterprise.
XV. Under the principles of implementation by steps and orderly promotion, the first group of pilot programs on the operation mode of bank guarantee account in SHFTZ shall be implemented from December 1, 2014.
1. Scope of the first group of pilot programs:
(1) Scope of areas under special supervision of the Customs: Shanghai Waigaoqiao Bonded Logistics Parks in SHFTZ (customs zone code 2246), Yangshan Bonded Port (customs zone code 2249) and Shanghai Pudong Airport Comprehensive Bonded Zone (customs zone code 2216).
(2) Business categories: collective declaration upon separate transport, display outside SHFTZ, inspection outside SHFTZ, maintenance outside SHFTZ, and outward processing.
(3) Participants: Bank of China, Bank of Communications, China Minsheng Banking Corp., Ltd., China Merchants Bank, and Bank of Shanghai (see the Annex for details).
Other regions, business categories and banks shall be included in the operation mode of bank guarantee account for administration according to system development and assessment.
2. At the early period of the pilot program, the operation mode of bank guarantee account shall run together with the former bank guarantee management mode. Under the former bank guarantee management mode, for the bank guarantee that had been granted recordation and used within the aforesaid pilot customs zones, the relevant guarantee operations may continue to be conducted within the term of validity of recordation.
From January 1, 2015, for the increased bank guarantee operations in the aforesaid pilot customs zones, the Customs will no longer accept the bank guarantee without the transmission of banks' electronic data.
3. Until the comprehensive implementation of the operation mode of bank guarantee account, the bank shall realize the connection of electronic data of the bank guarantee with the Customs, and the Customs will no longer accept bank guarantee without the transmission of banks' electronic data. The date of comprehensive implementation of the operation mode of bank guarantee account would be announced in another notice.
XVI. This Announcement shall come into force on December 1, 2014.
Shanghai Customs
December 1, 2014