The domestic sale of processing trade bonded goods is referred to as “domestic sale”, which refers to the behavior that processing trade enterprises cannot process and export again according to the regulations for some reasons, but need to sell all or part of bonded materials and finished products in China, or transfer them to produce products for domestic sale.
For processing trade enterprises, the scope of domestic sales includes but is not limited to bonded materials and finished products, and also includes the transfer of semi-finished products, leftover materials, defective products, by-products and damaged bonded goods generated under processing trade into domestic sales.
Carry-over of deep processing, sales of finished products to enterprises in the comprehensive bonded zone, and storage of finished products in export supervised warehouses are not for domestic sales.
Enterprises may sell in the domestic market
1. The customer terminates the processing trade contract and cancels the export order.
2. The customer requires to change the direct export of finished products to domestic sales.
3. Downstream enterprises cancel the carry-over mode of deep processing and require upstream enterprises to directly deliver the finished products of processing trade in China after tax payment.
4. The processing trade export contract has been completed, and the remaining materials in the manual (account) book are no longer used for export.
5. The leftover materials, defective products and by-products produced in the process of processing trade production are no longer transported out of the country and need to be disposed of in China.
6. Periodic write-off and inventory of processing trade account books, where the actual inventory is less than the result of electronic account accounting and the networked enterprise can provide justifiable reasons.
7. Processing trade goods are damaged or damaged due to force majeure or other reasons and cannot be used for export.
The type of domestic sales
Domestic sales include the domestic sales of materials, finished products (semi-finished products), leftover materials, defective products, by-products, damaged bonded goods, non-priced equipment and so on.
Different types of processing trade goods for domestic sale, the method of levy and specific requirements are also different.
1. Imported bonded materials, finished products or defective products for domestic sale
Where bonded materials, manufactured goods or defective goods are imported for processing trade for sale in China, the following procedures shall be applied to the tax levied on domestic sales:
(1) The declaration shall be made according to the name of the original imported materials and parts, that is, the finished products and defective goods shall be converted into the imported bonded materials and parts consumed according to the unit consumption.
(2) to levy deferred tax interest.
(3) If the amount of materials for domestic sale accounts for less than 3% (including 3%) of the actual total amount of imported materials and parts under the processing trade contract, and the total amount is less than RMB 10,000 yuan (including 10,000 yuan), it falls within the scope of import license administration and is exempted from the submission of license; If the amount of materials for domestic sale accounts for more than 3% of the total amount of materials actually imported under the processing trade contract or the total amount is more than 10,000 yuan, which falls within the scope of import license administration, the enterprise shall also submit relevant import license to the customs in accordance with the provisions.
2. Domestic sale of offsets, by-products or damaged bonded goods
(1) When selling in the domestic market, scraps need to be declared in accordance with the state of application for inspection, and there is no need to submit permission documents and pay deferred tax interest.
(2) When the by-products are sold in China, they should be declared according to the status of application for inspection, and submit the license and pay the deferred tax interest according to the relevant regulations.
(3) When the affected bonded goods are sold in China, if they lose their original use value due to force majeure, but can be reused, the declaration shall be made according to the name of the original imported materials and parts, without the need to submit the license, but the deferred tax interest shall be paid in accordance with relevant regulations.
Declare the business process of domestic sale
1. No need to declare the contact form for domestic sales, but directly declare the bonded checklist according to the situation of goods for domestic sales.
2. Declare tax declaration for domestic sales on the basis of bonded checklist, and generate tax declaration.
3. Pay tax and deferred tax interest according to tax receipt.
Valuation principles for different processing trade goods
1. Processing imported materials or their finished products (including defective products)
The customs examines and determines the customs value on the basis of the original transaction value of the imported materials and parts.
2. Processing imported materials or their finished products (including defective products) with supplied materials
The customs shall examine and determine the customs value on the basis of the import transaction value of the bonded goods of the same or similar nature as the materials and parts imported at the same time or about the same time as the declaration for domestic sale.
3. The leftover material
(1) The customs examines and determines the customs value on the basis of the domestic sale price.
(2) When the auction is approved by the customs for domestic sales, the customs shall examine and determine the customs value on the basis of the auction price.
By-products of 4.
(1) The customs examines and determines the customs value on the basis of the domestic sale price.
(2) If not all of the by-products are produced with bonded materials, the customs shall examine and determine the customs value on the basis of the calculation result of the proportion of bonded materials in the input cost accounting.
(3) When the auction is approved by the customs for domestic sales, the customs shall examine and determine the customs value on the basis of the auction price.
Corner scrap domestic sale online open auction condominium mechanism
The online open auction co-management mechanism of processing trade scrap for domestic sale means that, with the permission of the customs, the processing trade enterprises, through the auction platform networked with the customs, entrust the auction institutions with legal qualifications to auction the processing trade scrap in public according to law, and the customs and relevant competent departments jointly implement the management of this transaction behavior.
Edge and corner wastes include processing trade scraps, by-products and disstory-affected bonded goods that need to be taxed with residual value according to regulations, as well as bonded goods such as scrap, waste, defective goods and by-products generated in the bonded processing of enterprises within the special supervision area of the customs.
The relevant provisions
1. For processing trade scrap sold in domestic market through online open auction, customs shall examine and determine the duty-paying price based on the auction price, and the commission paid by the buyer to the auction enterprise shall not be included in the duty-paying price.
2. For the scraps sold in the domestic market through online auction, the customs shall examine and determine the dutiable price based on the auction price. If the same batch of scrap materials is auctioned for more than three times and the auction announcement period is not less than three days each time, and one of them is auctioned without reserve price, the processing trade enterprise may directly apply to the customs for going through the verification procedures according to the provisions by the written commitment that it will no longer sell the scrap materials and other materials related to the auction-off.
3. Those who fail to complete the taxing procedures for domestic sales of processing trade scrap due to repeated failure of auction or other reasons within the validity period of the Manual shall go through the formalities for extension of the Manual in accordance with the provisions.
