۱. Import and export goods as part of the policy of withdrawal or exemption from customs duties on import and export goods of the State. Company A and Company B import iron ore, crude oil and other raw materials. Since the import price fluctuates with the international market and the price of the duties paid for customs clearance is indeterminate, the amount of customs duty payable cannot be calculated temporarily. However, in order to avoid administrative costs and negative effects on sales due to the detention of imported goods in ports, the Bank of China proposes to issue a letter of guarantee of customs duties to the customs authority so that enterprises can first ensure customs clearance, while enterprises then pay customs duties in accordance with the relevant regulations. Therefore, it meets the requirements of companies for the payment of tax after customs clearance. The information provided here is part of the online course Import Export Training Bank Guarantee for Customs and Licensing Authorities What is the bank guarantee, which carries out procedures with customs and import authorities? When should the bank guarantee be lifted at customs? Does the bank reserve financing against the bank guarantee? In some import cases, you must benefit from a bank guarantee as well as the deposit in order to benefit from the exemption from the import tax. At a later stage, if Customs (the Government) fails to fulfill your obligation according to the details of the guarantee made, Customs will collect the duties or taxes in respect of the import shipment by losing such a bank guarantee. In many cases, the bank guarantee is made with a deposit, with the customs service ensuring the obligation to grant various exemptions from customs duties by importers. For example, you (importer) want to import machinery from abroad and must benefit from the exemption from import duties. You intend to import under the EPCGC (Export Promotion Capital Goods) program, where you can benefit from the exemption from import duties on capital goods subject to the conditions of the system. Under the EPCG scheme, the importer must comply with certain standards and comply with the export obligation in terms of quantity, value or both in accordance with the instructions of the approval authority. Normally, the EPCG (Export Promotion Investment Goods) system is granted for a period of 5 years.
Within the specified period of 5 years, the export obligation must be fulfilled. If the EpcGC (Export Promotion Capital Goods) licensing authority insists on a guarantee with a bank guarantee, the bond and bank guarantee will be executed by the importer when importing the goods under the EPCGC programme. The bank guarantee is the guarantee of the bank that makes sure to pay the amount specified in the document if its customer (bank) (you-importer) is in default. Usually, the bank reserves an amount of bank guarantee margin from your account while issuing a bank guarantee. The amount of the reserve margin can be 100% of the amount mentioned in the bank guarantee or 5% or zero, depending on your relationship with the bank on your creditworthiness. Once the export obligation has been fulfilled in accordance with the regime and the deposit exported, the importer shall submit the necessary proof of compliance with the export obligation. Usually, an export promotion copy of the shipping document, the certificate of completion of the bank payment, the FIRC (foreign remittance certificate), the bill of lading or air transport slip, etc. are considered proof of export.
The authorities may require all or part of these documents or other documents determined by the customs and licensing authorities. Also read how and when you can void the bank guarantee and guarantee. Difference between letter of credit and bank guarantee Do you have different thoughts on the execution of the bank guarantee and the bond? Share your experience in bank guarantees with customs authorities or import industry approvals. The above information is part of the online training course on how to importImport Comment below on your thoughts on running BG and Bond under Import and Export. ]]> More details on importing export Basic export tips for DDP or DDU delivery terms contract Difference between bank release order and bank delivery order How to cancel bank guarantee and executed guarantee with customs. When to cancel the bank guarantee and deposit. Why, better attention in the preparation of the export invoice? Import procedures for plumbing, motors and management, environmental quality. To import artwork. Collectors` items, antiques How to import goods in accordance with Chapter 96 of the HS Code What is the test report in import customs clearance What is excluded in export trade What is Form CT3.
How to get CT3. Why CT3 required What is the area of customs duties for exports and imports What is navigation How does the first system of evaluation of import clearance procedures work? ]]> After fulfilling the export obligation under the scheme and the security lodged, the importer shall submit the necessary proof of compliance with the export obligation. Usually, an export promotion copy of the shipping document, the certificate of completion of the bank payment, the FIRC (foreign remittance certificate), the bill of lading or air transport slip, etc. are considered proof of export. The authorities may require all or part of these documents or other documents determined by the customs and licensing authorities. Also read how and when you can void the bank guarantee and guarantee. Difference between letter of credit and bank guarantee 5. Bank of China will provide compensation against the letter of guarantee or cancel the letter of guarantee. Share your experience in bank guarantees with customs authorities or import industry approvals.
Once the boc customs deposit network has received the L/G and determined that it is true and correct, it will issue to customs a notice of registration of the customs deposit account using the fourth copy of the customs deposit account opening form. The original L/G is kept by customs. For advice on customs procedures, please contact the nearest customs advisor. For enquiries, see heading No. 9301.3. Avoid repeated customs clearance formalities. (e) provide a customs account opening form and other relevant information. In order to solve the problems faced by processing companies that have to submit customs declarations in different ports, the General Administration of Customs has issued a circular on the experimental implementation of subcontractors for the management of trade management. According to the circular, at the request of the Company and for approval by Customs, sub-manuals supplementing the processing of the main commercial registration manuals may be issued by Customs.
The sub-manual contains basic information about the processing trade and details about the materials and parts to be imported or the finished products to be exported (or both). There are two types of underhands: separate underhands for customs declaration and underhand for in-depth processing. The latter is further divided into local deep processing import sub-manuals and non-local deep processing export sub-manuals. In special circumstances, the BOC may, at the request of Customs and at the request of the company, extend an L/G. . . .