"Liquid chemical processing trade supervision mode" implemented in Fuzhou customs district, saving 50 million yuan in taxes annually

On December 15th, at the Jiangyin Port Area of Fuzhou Port, a batch of 4,754 tons of bonded imported liquid chemicals was efficiently transported via pipeline to the storage tanks of Wanhua Chemical (Fujian) Co., Ltd. (hereinafter referred to as "Wanhua Chemical"), marking the official implementation of the "Regulatory Model for Liquid Chemical Processing Trade" in the Fuzhou Customs District.

Processing trade refers to the business activity in which operating enterprises import all or part of raw and auxiliary materials, components, parts, and packaging materials, and then re-export the finished products after processing or assembly. It is an important trade method for saving enterprise costs and enhancing market competitiveness. However, goods for processing trade are managed separately from those for non-processing trade. For the liquid chemical industry, this requires enterprises to duplicate at least one set of production lines and warehousing facilities, necessitating a significant investment of manpower and resources.

"In the past, bonded liquid goods required independent storage tanks and dedicated production lines for processing. For us, the cost of rebuilding production lines and warehousing was too high. Therefore, even though the bonded policy for processing trade was very favorable, our company did not engage in processing trade business," Li Hongwei, the financial director of Wanhua Chemical, told reporters. "Now that the customs has introduced the 'Regulatory Mode for Liquid Chemical Processing Trade', we can enjoy the bonded policy for processing trade without having to rebuild production lines and warehousing, saving us a lot of costs."

It is reported that the "liquid chemical processing trade supervision mode" relies on enterprises obtaining customs advanced certification qualifications. Based on their standardized internal management and comprehensive information systems, customs implements information management throughout the entire process of bonded material import, production processing, and finished product export. Through the information system, effective separation of data information flow between processing trade and non-processing trade goods is achieved, enabling chemical enterprises to utilize existing production lines and warehousing facilities while conducting both general trade and processing trade business.

Zheng Shuo, Director of the Fuzhou Customs' Rongcheng Customs Office in Fuqing, said, "By implementing 'embedded data information flow supervision', customs assists enterprises in fully utilizing bonded policies, significantly reducing operational and logistics costs, and creating a more convenient, stable, and predictable development environment for enterprises."

"The benefits brought by the new regulatory model are multi-dimensional." Li Hongwei did some calculations: relying on the bonded policy for processing trade, Wanhua Chemical can effectively integrate the international and domestic markets, with the annual import and export value of processing trade reaching approximately 1.1 billion yuan, which can reduce the import tax burden by about 50 million yuan.