Departments of commercial administration in all provinces, municipalities, separately listed cities in the state’s plan, Harbin, Changchun, shenyang, Wuhan, Nanjing, Xi’an, Chengdu and Guangzhou, Cuangdong customs bureau, special commissioner’s office in Tianjin and Shanghai, and all customs directly under administration of General Administration of Customs:
In accordance with requirements of the national macro-control deployment and industrial policies, related departments decide that PetroChina and SinPec shall continue to undertake the processing trade business of crude oil based on the supply balance of domestic market. Adjustments to processing trade business of crude oil are now announced as follows:
1. Provincial departments of commercial administration and administrative Customs shall go through formalities of approval and registration of processing trade contract based on applications and automatic import licenses rather than report to Ministry of Commerce for examination and approval. Provincial departments of commercial administration and administrative Customs will not examine export volume of the enterprises at this stage.
2. Administrative Customs shall discharge in accordance with export volume of processed oil of processing trade approved by Ministry of Commerce, National Development and Reform Commission and General Administration on Customs. Enterprises shall go through formalities of tax of domestic sales of processing trade for those processed oil that cannot be exported.
3. Ministry of Commerce Department of Import and Export of Electromechanical Products, General Administration of Customs Department of Processing Trade Urgent Circular on Related Matters of Temporary Adjustment of Processing Trade Policy (No. 2325) is terminated.
Circular of the General Office of the Ministry of Commerce
General Office of the General Administration of Customs
May 18, 2006
