Several Provisions of Shanghai Municipality on Promoting the Development of the Bonded Maintenance Business in Pudong New Area

(Adopted at the 17th Session of the Standing Committee of the 16th Shanghai Municipal People's Congress on November 28, 2024)

Article 1

With a view to promoting the development of the bonded maintenance business in Pudong New Area, enhancing the processing trade, facilitating the smooth connection of domestic and foreign industrial chains, advancing the optimization and upgrading of the industrial structure, and expanding the opening-up to the outside world, these Provisions are formulated in accordance with the basic principles of the relevant laws and administrative rules and in the light of the actual circumstances of Pudong New Area.

Article 2

These Provisions apply to the development of the bonded maintenance business within the administrative region of Pudong New Area, and the related supervision and administration thereof.

Article 3

The Municipal People's Government shall intensify its leadership over the development of the bonded maintenance business in Pudong New Area, enhance its cooperation with the relevant departments of the State, and comprehensively coordinate the major matters in the development of the bonded maintenance business in Pudong New Area.

The People's Government of Pudong New Area and the Administration of Lin-gang Special Area of China (Shanghai) Pilot Free Trade Zone (hereinafter referred to as the Lin-gang Special Area Administration) shall implement the policies of the State and this Municipality on the bonded maintenance business, establish an administration mechanism for the business, formulate specific measures to promote the development of the business, and be responsible for the administration of the business according to their respective responsibilities and duties.

Article 4

The departments of commerce of this Municipality and Pudong New Area shall take the lead in coordinatively promoting the development of the bonded maintenance business, and, according to their responsibilities and duties, conduct relevant administrative work therefor.

The departments of ecology and environment of this Municipality and Pudong New Area are responsible for the supervision and administration of the ecological and environmental protection in the bonded maintenance business according to their respective responsibilities and duties.

The departments of development and reform, finance, and tax of this Municipality and Pudong New Area are responsible for effectively handling the relevant work of supporting the development of the bonded maintenance business according to their respective responsibilities and duties.

The Customs performs its supervisory and administrative duties related to the bonded maintenance business in accordance with law.

The Administrative Committee (Administration) of the Customs Special Supervision Zone shall implement its administrative responsibilities and be responsible for the supervision and administration of the bonded maintenance business within its jurisdiction.

Article 5

Qualified enterprises within the Customs Special Supervision Zone may provide bonded maintenance services for the products listed in the catalogue of the products maintainable in the comprehensive bonded zone. Where an enterprise provides bonded maintenance services for a self-produced product that is sold domestically by its own enterprise group, if the product is returned to China after the maintenance, such service is not subject to the restrictions imposed in the catalogue.

In addition to the services set forth in the preceding Paragraph, a qualified enterprise within the comprehensive bonded zone may also provide bonded maintenance  services for the medical devices, such as low-dose X-ray safety inspection equipment, X-ray non-destructive testing instruments, complete sets of nuclear magnetic resonance imaging devices, and color ultrasound diagnostic instruments, which are imported from outside the Chinese mainland and to be transported back to their original sources after the maintenance (hereinafter referred to as "a service (or product) with both ends outside the Chinese mainland"). Where a radiation safety permit is required by law, the enterprise shall go through the relevant formalities for the permit. Such medical devices may not be circulated or used within the Chinese mainland after the maintenance.

An enterprise in the Special Customs Supervision Zone that has received permission from the relevant departments of the State may provide on a pilot basis the bonded maintenance services with both ends outside the Chinese mainland, which fall beyond the circumstances specified in the preceding two Paragraphs and which have high added value and high technology content, and are in compliance with the environmental protection requirements.

Article 6

A qualified enterprise certified as a high-level enterprise by the Customs, which is outside the Customs Special Supervision Zone but within China (Shanghai) Pilot Free Trade Zone (including the Pudong New Area part within Lin-gang Special Area, hereinafter referred to as the Pilot Free Trade Zone) may, according to the catalogue and the relevant requirements specified by the State, provide the bonded maintenance services for large equipment with both ends outside the Chinese mainland, such as aircrafts, ships, and shield tunneling machines.

An enterprise that has received permission from the relevant departments of the State, which is outside the Customs Special Supervision Zone but within the Pilot Free Trade Zone, may provide on a pilot basis the bonded maintenance services with both ends outside the Chinese mainland, which fall beyond the circumstances specified in the preceding Paragraph and which have high added value and high technology content, and are in compliance with the environmental protection requirements.

Article 7

An enterprise, outside the Special Customs Supervision Zone or outside the Pilot Free Trade Zone, that has received permission from the relevant departments of the State, may provide on a pilot basis the bonded maintenance services with both ends outside the Chinese mainland, such as services for electronics, aerospace, ships, and construction machinery, which have high added value and high technology content, and are in compliance with the environmental protection requirements.

Article 8

An enterprise that provides the bonded maintenance services shall fulfill the conditions, such as having appropriate production premises, business scope, production qualification, and technical personnel, and establish a management system and an information system that meet the relevant regulatory requirements.

To provide bonded maintenance services, an enterprise shall formulate a management plan for the bonded maintenance business, specifying such content as the operating specifications, safety rules, and the measures for environmental pollution prevention for the business.

In the trial provision of the bonded maintenance services according to Paragraph 3 of Article 5, Paragraph 2 of Article 6, and Article 7 of these Provisions, an enterprise shall also specify in its management plan for the bonded maintenance business such content as the source of the goods to be maintained and their destination after the maintenance.

Article 9

To provide the bonded maintenance services, an enterprise in the Customs Special Supervision Zone shall submit its management plan for the bonded maintenance business to the Administrative Committee (Administration) of the local Customs Special Supervision Zone. The said Administrative Committee (Administration) shall, jointly with the local departments, such as those of commerce and ecology and environment, as well as the competent Customs, research and determine a list of enterprises qualified for providing the bonded maintenance services, formulate a supervision plan therefor, and submit them to the municipal departments of commerce and ecology and environment, as well as the Customs for the record.

To provide the bonded maintenance services with both ends outside the Chinese mainland, an enterprise outside the Customs Special Supervision Zone but within the Pilot Free Trade Zone shall submit a management plan for the bonded maintenance business to the Lin-gang Special Area Administration or the department of commerce of Pudong New Area. The said Administration or department shall, jointly with the local departments such as the department of ecology and environment as well as the competent Customs, research and determine a list of enterprises qualified for providing the bonded maintenance services, formulate the supervision plan therefor, and submit them to the municipal departments of commerce and ecology and environment, as well as the Customs for the record.

Article 10

An enterprise that provides on a pilot basis the bonded maintenance services shall submit a management plan for the bonded maintenance business to the municipal department of commerce. The department of commerce shall, jointly with the municipal department of ecology and environment, the Customs, and the People's Government of Pudong New Area or the Lin-gang Special Area Administration, conduct examination and approval thereof, and, upon approval by the Municipal People’s Government, file with the relevant departments of the State.

Article 11

An enterprise providing the bonded maintenance services shall comply with the relevant provisions of the State and this Municipality, and, unless permitted by laws, administrative rules, the provisions of the State Council, or the provisions made by the relevant departments of the State as authorized by the relevant laws or administrative rules, may not provide the bonded maintenance services for prohibited imports or exports, nor may it provide dismantling, scrapping, or other relevant services through the method of bonded maintenance.

No enterprise may import solid waste through the method of bonded maintenance.

Article 12

In providing the bonded maintenance services, an enterprise shall, in accordance with law, implement its responsibility as an entity responsible for environmental pollution prevention and control, strengthen the quality control of the materials for the bonded maintenance, reduce from the source the amount of solid waste generated by the bonded maintenance, and control the rate of solid waste generation at a reasonable level.

In providing the bonded maintenance services, an enterprise shall, according to the relevant provisions of the State, establish solid waste management accounts and declare such information as the type, amount, flow direction, storage, utilization, and disposal of the solid waste generated thereby.

In providing inbound bonded maintenance services, an enterprise shall, according to the relevant provisions of the State, properly treat and dispose of solid waste. Where an enterprise entrusts another party for transportation, utilization, or disposal thereof, it shall verify the qualification and technical capability of the entrusted party, enter into a written contract therewith in accordance with law, and stipulate the requirements for pollution prevention and control. Where hazardous waste is involved, it shall also meet the relevant requirements of the State for the prevention and control of hazardous waste pollution.

The transportation of hazardous waste in connection with inbound bonded maintenance services of goods back to their original sources shall comply with the provisions of the State on the approval and administration of the export of hazardous waste.

Article 13

The department of ecology and environment of Pudong New Area and the Administrative Committee (Administration) of the Customs Special Supervision Zone shall, according to their respective responsibilities and duties, formulate a supervision plan for ecological and environmental protection in the bonded maintenance, specifying the requirements for the content and methods of supervision, and strengthen the whole-process supervision thereof.

Article 14

The qualified goods to be maintained that enter the Customs Special Supervision Zone of the Pilot Free Trade Zone from outside the Chinese mainland may be sold domestically after the maintenance where the relevant documents are verified and it is determined that such goods comply with the relevant import supervision requirements, and shall be taxed in accordance with law. Provided, however, that a product is prohibited by the State from import, or a product is restricted from import and no permission is obtained therefor, it shall be transported back to its original source.

The qualified goods to be maintained that enter the Customs Special Supervision Zone from outside the Zone within the Chinese mainland may be directly exported according to the relevant provisions of the State after being maintained in the Zone.

Article 15

The People's Government of Pudong New Area and the Lin-gang Special Area Administration shall, jointly with the municipal departments such as those of commerce and ecology and environment, as well as the Customs, establish a multi-department-networked supervision platform for the bonded maintenance business, to enable information sharing of the whole-process management of the bonded maintenance cargo flow, repair process, and ecological and environmental protection, as well as rapid early warning of and timely responding to the risks.

The Lin-gang Special Area Administration and the relevant departments of Pudong New Area shall, jointly with the competent Customs and the Administrative Committee (Administration) of the Customs Special Supervision Zone, through the supervision platform for the bonded maintenance business, strengthen the daily supervision over the bonded maintenance services.

An enterprise providing the bonded maintenance services shall timely upload the information such as the costs and expenses for the maintenance to the supervision platform for the bonded maintenance business.

Article 16

The People's Government of Pudong New Area and the Lin-gang Special Area Administration shall, jointly with the municipal departments of commerce and ecology and environment, as well as the Customs, establish a joint supervision system for the trial implementation of the bonded maintenance business, specifying the requirements for daily supervision, and the procedures for handling of illegal acts and for exiting from the trial implementation.

The People's Government of Pudong New Area and the Lin-gang Special Area Administration shall set up a module on the supervision platform for supervising the trial implementation of the  bonded maintenance business, to supervise over the various phases, such as the phase of entry or exit of goods into or from outside of the Chinese Mainland, the phase of entry or exit of goods into or from the Special Customs Supervision Zone, and the phases of domestic sales and exports. Where an enterprise commits a major ecological and environmental violation or smuggling, or conducts any other relevant act, appropriate legal liability shall be imposed on it and the exit procedure shall be promptly initiated therefor.

Article 17

The People's Government of Pudong New Area and the Lin-gang Special Area Administration shall, by focusing on the advanced manufacturing and strategically emerging industries, research on institutional innovation of the bonded maintenance business, promote the agglomeration thereof, and drive the upgrading of the industry.

The People's Government of Pudong New Area and the Lin-gang Special Area Administration shall optimize the service mechanism for the enterprises engaging in the bonded maintenance services and facilitate the enterprises in such aspects as application for opening the business, transportation and logistics, customs clearance of goods, and talent introduction.

Article 18

This Municipality encourages financial institutions to optimize the handling of cross-border RMB businesses, increase financial support for the enterprises engaging in the bonded maintenance services, and guide the non-governmental capital to support the development of the bonded maintenance business.

Article 19

These Provisions shall be applied mutatis mutandis to the development of the bonded maintenance business and the related supervision and administration therefor in the Lin-gang Special Area (the part outside Pudong New Area) of China (Shanghai) Pilot Free Trade Zone.

Article 20

These Provisions shall be effective as of January 1, 2025.