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07 November 2016

China cancels Ministry of Commerce pre-approval on contract and toll manufacturing concerns

Effective as of September 1, China adopted a new administrative procedure that cancels the Ministry of Commerce (MOC) pre-approval requirement on processing trades, i.e., contract manufacturing and toll manufacturing concerns. The MOC and the General Administration of Customs (GAC) jointly released MOC and GAC Public Notice [2016] No. 45 (PN 45) on August 25, providing that contracts for processing trade, domestic sales of bonded materials and end products are no longer subject to a pre-approval by a local MOC.

A Tax Alert prepared by EY's Global Tax Desk Network, and attached below, provides additional details.

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ATTACHMENT

Full text of Tax Alert 2016-1883

Document ID: 2016-1883

 

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