Announcement of the Shanghai Customs on the Bonded Storage Business Conducted in Areas under Special Customs Supervision in the China (Shanghai) Pilot Free Trade Zone in the Pilot Program of Parallel Import of Automobiles

• Area of Law： Pilot Free Trade Zone Customs
• Level of Authority： Local Regulatory Documents
• Date issued：06-29-2016
• Effective Date：06-29-2016
• Status： Effective
• Issuing Authority： Other Institutions of Shanghai Municipality

Announcement of the Shanghai Customs on the Bonded Storage Business Conducted in Areas under Special Customs Supervision in the China (Shanghai) Pilot Free Trade Zone in the Pilot Program of Parallel Import of Automobiles
For the purposes of advancing the institutional innovation in the China (Shanghai) Pilot Free Trade Zone (“SHFTZ”) and promoting the sound development of parallel import of automobiles, in accordance with the Customs Law of the People's Republic of China, the Several Opinions of Eight Departments Including the Ministry of Commerce on Promoting the Pilot Program of Parallel Import of Automobiles (No. 50 [2016], MOC), and the requirements of the General Administration of Customs on the bonded storage business in the pilot program of parallel import of automobiles, the following matters concerning conducting the bonded storage business in areas under special customs supervision in the SHFTZ in the pilot program of parallel import of automobiles are hereby announced:
I. Enterprises covered by the pilot program of parallel import of automobiles (hereinafter referred to as the “participating enterprises”) are parallel imported automobile dealers meeting the access conditions, jointly recognized by the Shanghai Municipal Commission of Commerce and the Administration of Bonded Area under the Management Committee of the SHFTZ, and reported to the Ministry of Commerce for recordation. Storage enterprises related to participating enterprises (hereinafter referred to as “storage enterprises”) are enterprises that, as authorized by participating enterprises, carry out the bonded storage of parallel imported automobiles in areas under special customs supervision in the SHFTZ.
II. Bonded storage of parallel imported automobiles means the storage, entry, and exit of parallel imported automobiles carried out by participating enterprises and storage enterprises in areas under special customs supervision in the SHFTZ according to the regulatory requirements of the Customs.
III. The bonded storage period for parallel imported automobiles shall be three months, beginning from the date when the Customs releases the automobiles entering the SHFTZ from abroad and ending on the date when the import is declared at the time of exiting the SHFTZ or when the automobiles are shipped out of China, without any extension.
During the period of bonded storage of parallel imported automobiles, participating enterprises or storage enterprises may, according to the relevant provisions, apply for application of the innovative rules of the SHFTZ.
IV. A storage enterprise shall meet the following conditions:
(1) It has established a computerized management system in compliance with the regulatory requirements of the Customs, able to connect to the network of the Customs in a certification manner prescribed by the Customs through a data exchange platform or any other relevant network to submit to the Customs the relevant data that can satisfy the regulatory requirements of the Customs.
(2) It has dedicated storage places for automobiles that satisfy the regulatory requirements of the Customs.
V. Before conducting the business, a participating enterprise shall, on the basis of its qualification for participating in the pilot program of parallel import of automobiles as jointly recognized by the Shanghai Municipal Commission of Commerce and the Administration of Bonded Area under the Management Committee of the SHFTZ, undergo the recordation formalities with the processing trade department of the Shanghai Customs (See Annex for the Recordation Form).
Before conducting the business, a storage enterprise shall undergo the recordation formalities with the competent customs office on the basis of the following materials:
(1) The recordation certificate of the participating enterprise as confirmed by the processing trade department of the Shanghai Customs.
(2) The storage service agreement on parallel imported automobiles as signed with the participating enterprise.
(3) Relevant supporting materials that meet the conditions in article IV of this Announcement.
By relying on the H2010 system and the information systems of the SHFTZ, the Customs implements the supervision mode of “recordation of enterprises, code identification, journal management, and whole-process tracking” for the bonded storage of parallel imported automobiles.
VI. When declaration of parallel imported automobiles is made to the competent customs office at the time of their entry into China and the SHFTZ, a participating enterprise or a storage enterprise shall, according to the rules for filling out customs declaration forms, fill out the checklist for entry recordation, and indicate “parallel imported automobiles” in the column of remarks. At the same time, a written commitment shall be submitted, stating that:
(1) the vehicles for which entry declaration is made will only be used for parallel import; and
(2) import declaration will be made for the vehicles or the vehicles will be shipped out of China within three months after the Customs releases the vehicles for entry.
VII. An enterprise shall, within three months after the Customs releases the vehicles for entry, make import declaration for the vehicles to exit the SHFTZ on the basis of its special license for parallel import of automobiles.
VIII. Parallel import of automobiles shall comply with the relevant provisions issued by the State Council on the administration of vehicle import ports, and relevant formalities shall be undergone according to the current provisions at the import ports and at the time of import customs transit, import and exit, and issuance of certificates of importation of cargo.
IX. Where parallel imported automobiles are in the bonded circulation between areas under special customs supervision in the SHFTZ or between storage enterprises in the same area under special customs supervision, it shall be subject to the consent of the competent customs offices at the places to or from which they move, and the bonded storage period shall be continuously calculated,.
X. Where, within three months after parallel imported automobiles are released for entry, an enterprise fails to declare import to the Customs or fails to provide its special license for parallel import of automobiles when import declaration is made, the Customs shall no longer accept its import declaration, order the enterprise to undergo the formalities for shipping them out of China, and report relevant information to the departments recognizing the qualifications for participation in the pilot program of parallel import of automobiles.
XI. A participating enterprise or a storage enterprise shall guarantee honest declaration, and conduct bonded storage as well as SHFTZ entry and exit operations for parallel imported automobiles within the time limit prescribed by and according to the regulatory requirements of the Customs. Where the enterprise violates its commitments or commits any other violation specified by the Customs, the Customs shall suspend its service for the enterprise's parallel import of automobiles.
XII. This Announcement shall come into force on the date of issuance.
Annex: Recordation Form for Participating Enterprises in the Parallel Import of Automobiles
Shanghai Customs
June 29, 2016