Six departments, including the General Administration of Customs (GAC), have jointly released the Announcement on Adjusting the Management Measures for the Sugar for Processing Trade Within and Outside Special Customs Supervision Areas (the "Announcement"), effective as of July 1, 2024.
The Announcement stipulates that sugar entering special customs supervision areas and bonded zones from overseas shall still be subject to bonded policy. The finished products of bonded imported sugar in special customs supervision areas that are processed within such areas shall not be transferred on bond between special customs supervision areas, bonded zones, and enterprises engaged in processing trade and bonded maintenance enterprises outside such areas. Their domestic sales shall be governed by relevant provisions in the Announcement. Bonded imported sugar without being processed may be transferred on bond. Meanwhile, the Announcement clarifies that the finished products processed by enterprises in comprehensive bonded zones, bonded port areas, and enterprises in Zhuhai zone of the Zhuhai-Macao Cross-border Industrial Zone using bonded imported sugar will not be eligible for selective tariff in terms of domestic sales. Import tariff will be levied on all corresponding bonded materials, and import value-added tax and consumption tax will be levied on the actual status of the goods (finished products).