1. Policy Basis 📜

Based on the "Customs Supervision Measures for Bonded Areas" and the relevant regulations of the current "Customs Comprehensive Bonded Area Management Measures of the People's Republic of China", goods transported into the bonded area from overseas are uniformly regarded as being outside the territory for customs supervision purposes.

Under the support of bonded policies, goods returned due to unqualified packaging are classified as transit goods, and they enjoy bonded treatment throughout the entire process of entering the zone, without the need to pay import tariffs and import value-added tax immediately.

In terms of regulatory documents, except for goods explicitly prohibited by the state from import and export and special goods subject to specific control regulations, overseas goods entering the bonded area generally do not require import and export quota control and licensing document review, and the access conditions are more lenient.

II. Compliant Operational Procedures 🔧

The entire rectification and resumption process is divided into three standardized steps, which are carried out in an orderly manner in full compliance with customs supervision requirements.

Firstly, the goods are declared to enter the Shanghai Waigaoqiao Free Trade Zone through the bonded warehousing and entrepot supervision method. After entering the zone, the goods are subject to regular supervision as bonded goods. During the entire process, various import taxes and fees are temporarily suspended, and there is no need to submit various complicated approval materials for import return. This simplifies the early access process.

The second step involves carrying out compliance rectification operations within the bonded area. Enterprises can complete adjustments such as changing the outer packaging of goods and reapplying product identification labels in the compliant warehouses within the area. According to Article 17 of the relevant management measures, commercial simple processing operations such as grading, selection, labeling, and packaging change of goods are allowed within the park, fully meeting the needs of packaging rectification.

After completing the entire packaging rectification work in the third step, the goods shall be reorganized and repacked, declared to customs in the form of an outbound record filing list, and reshipped to the original destination country and region. Customs will simultaneously complete the corresponding bonded goods verification process. The goods can enjoy the export duty exemption policy if they exit the country normally.

III. Core Advantages 💸

No deposit related to return shipments is required throughout the entire business process, eliminating the pressure of capital occupation.

The overall customs clearance process is simple and efficient. There is no need to submit a direct return application and various approval materials to customs. The goods can be declared for entry into the zone solely based on the import record list.

The entire process achieves bidirectional tax avoidance. During the goods return stage into the zone, no import-related taxes are required to be paid. After rectification, the goods can also be re-exported without export tariffs, minimizing the operating costs incurred by enterprises due to cross-border logistics rectification.