1. The Contract Registration and Recordation and Import and Export Goods Declaration Formalities for the Foreign-Invested Enterprises

Foreign-invested enterprises shall present the approval documentation, the contract, the articles of association, the certificate of approval and the business license when going through the customs declaration registration formalities. Based upon the nature of enterprises, the customs shall issue the "Import and Export Goods Tax Exemption or Reduction Certificate" or the "Customs Registration Manual on the Re-Export of the Processed Materials and Components Imported as a Necessity for Foreign-Invested Enterprises to Perform Product Export Contracts". Upon the import or export of goods, the enterprise should present relevant documentation, license, the above-mentioned "Certificate" or "Manual" as well as the shipping documents when going through the customs declaration formalities. For the goods imported or exported, the customs shall release the goods based upon the "Tax Exemption or Reduction Certificate" or "Registration Manual".

2. The Export-Oriented Processing and Assembling Contract Registration Recordation and Import and Export Declaration Formalities for Foreign-Invested Enterprises

Within 30 days upon the approval of the export-oriented processing and assembling contract, the enterprises concerned shall present the following approval documentation to go through the registration and recordation formalities at the local customs where the processing enterprises is located or the customs in charge: the specially approved business license; the taxation registration certificate issued by tax authorities; the approval documentation or contract recordation issued by the examining and approving authorities; a photocopy of the official contract signed with foreign businessman.

Should the customs deem it necessary, the processing enterprise shall pay a bond or offer a guarantee and import and export goods at designated ports. Upon the verification and approval of the customs, the processing enterprise will be given the "Export-oriented processing and assembling and Small and Medium-Scale Compensation Trade Import and Export Goods Registration Manual"; The processing enterprise shall present this manual when going through the customs declaration formalities at the customs where its goods enter and exit. Upon presentation of the "Registration Manual" and the special customs declaration form for export-oriented processing and assembling filled out by the processing enterprise, the customs will exempt the imported and exported goods concerned from the tariffs, the value-added tax, and the compensation tax. Upon completion of the contract, the enterprise shall, within the stipulated period of time, provide the competent customs with relevant accounting books and the "Registration Manual" to through the writing-off formalities.

3. The Compensation Trade Contract Registration and Recordation and Import and Export Declaration Formalities

Upon the approval and entry into force of the contract, the enterprise conducting compensation trade shall present the following approval certificate when going to the competent customs office to go through registration and recordation formalities; the specially-approved business license issued by the industrial and commercial administrative authorities; a duplicate of the office contract signed with foreign businessmen; and the approval documentation and the contract recordation certificate issued by the examining and approving authorities.
Upon verification and approval, the customs shall grant the "Export-Oriented Processing and Assembling and Small and Medium-Scale Compensation Trade Import and Export Goods Registration Manual": The enterprise concerned shall present this manual, import and export declaration forms, invoices for the goods and relevant approval documentation when making declarations to the customs regarding the import of equipment, materials and components under compensation trade products.

4. System of Bank Bond General Account

In compliance with the "Provisional Administrative Methods Regarding the Trial Implementation of the System of Bank Bond General Account for the Import of Materials and Components in the Processing Trade" formulated by such agencies as the General Customs Administration, the trial will be comprehensively implemented in July 1996.
(I). The customs where the processing enterprise is located shall handle the contract registration and recordation formalities based upon the processing trade contract presented by the enterprise engaged in the processing trade, the approval documentation of the competent foreign trade and economic cooperation authorities and the "Notification Form of the Registration of the Bank Bond General Account".
(II). The enterprise engaged in the processing trade shall, within the processing period authorized by the customs, upon the completion of contract or within 1 month after the re-export of the last batch of processed products, go through the contract writing-off formalities at the competent customs and then, designated Chinese bank to go through the general account writing-off formalities.