Chapter 1 General Principles

Article 1 Temporary Measures on Processing Trade Administration in Export Processing Zones is constituted in accordance with Foreign Trade Law of PRC, related law and administrative regulations, so as to promote healthy development of processing trade and guide its upgrade.

Article 2 Export processing zones are locations established with the authority of State Council and the closed supervision and management of the Customs.

Article 3 Processing trade in export processing zones means the production operation activities took by the enterprises in the export processing zones, including purchasing raw materials, spare parts, components, wrap pages in and out of the boundary and transporting the finished products out of the boundary after processing and assembling.

Article 4 Enterprises in the export processing zones means enterprises established comply with rules and regulation in the export processing zones with independent qualification of juridical person, according with the requirement of domestic industry development and according to related laws and regulations. Among which, foreign invested enterprises shall transact related procedure according to laws and regulations on supervision of foreign investment.

Chapter 2 Processing Trade Operation Administration in Export Processing Zones

Article 5 Ministry of Commerce is responsible sector of policy and operation on processing trade in export processing zones. Administration Committee in export processing zones （hereinafter referred to as Committee） is in charge of administration task.

Article 6 Export processing zones shall be in line with industry policy guidance and focus on attracting processing trade enterprises with high technology level and large increment content and guiding the large downstream enterprises with powerful accessory ability into the zones.

Article 7 The enterprises shall submit written application on starting processing trade operation to the Committee, with related valid approval documents. For specific regulated projects, related approval documents shall be provided.

Article 8 After receiving the application, Committee shall audit in accordance with related regulations. The enterprises with qualified processing trade operation shall be registered and put on records by the Customs.

Article 9 For the places where conditions permit, enterprises shall submit application report by E-port System, also through which the Committee shall approve the application for the registration.

Article 10 The enterprises could only start processing trade operation after registered and recorded.

Article 11 Committee shall gather overall information on examination and approval of export processing zones in the last year before January 15 annually.

Chapter 3 Administration on In-and-out-zone Goods of Export Processing Zones

Article 12 Except for specific regulation, in-and-out-zone goods between export processing zones and the overseas shall not conduct import and export quotas or licence regulation.

Article 13 Goods that are forbidden for import and export by the state shall not be let in or out of the export processing zones.

Article 14 Disassembly or renovation services shall not be started in the export processing zones.

Article 15 After-sale and maintaining service for exporting electromechanical products could be developed in the export processing zones.

Article 16 In-and-out goods between enterprises of export processing zone and overseas enterprises shall be transacted in accordance with related regulations on import and export goods. Whenever concerning import and export license regulations, relevant certificated shall be provided.

Chapter 3 Administration on Goods of Export Processing Zones for Deep-processing Carrying Forward outside Zones

Article 17 Goods of Export Processing Zones for Deep-processing Carrying Forward outside Zones mentioned in this measure means processing trade enterprises in the zones transfer their products directly to the export processing zones with specific supervision of the Customs (hereinafter referred to as transfer-in enterprises) for export after deep-processing.

Article 18 Materials with protective tariff and no substantial processing shall not conduct goods of export processing zones for deep-processing carrying forward outside zones.

Article 19 Before conducting goods of export processing zones for deep-processing carrying forward outside zones, related situation shall be submitted to Committee for auditing. The customs shall put on record for the enterprises with Committee's approval.

Article 20 The transfer-in enterprises in the other export processing zones with specific supervision of the Customs shall provide the Approval License of the Committee of the zone to transact carrying forward procedures.

Article 21 The transfer-in enterprises in the other export processing zones with no specific supervision of the Customs shall apply to the responsible commercial sectors to transact carrying forward procedures.

Article 22 All the carrying forward products for deep-processing outside the transfer-in zones shall be processed for re-exportation. The products have to be sell in domestic market shall be in line with domestic market regulations on processing trade.

Supplementary Articles

Article 23 Ministry of Commerce reserves the rights to the explanation to the Measures.

Article 24 The Measures shall take effect as January 1, 2006. The former version shall be abolished as of the date of the implementation of this one.

Appendix: 1. Approval Certificate on Processing Trade Services in Export Processing Zones

2. Approval Certificate on Carrying Forward Services for Deep-processing in Export Processing Zones