Imagine an aircraft engine nacelle requiring repairs no longer needs to be shipped overseas for service—it can now be fixed domestically in comprehensive bonded zones, with the option for re-export after maintenance. Similarly, a malfunctioning imported projector can be sent to these zones for repair before being returned to the consumer. This scenario has become reality under Announcement No. 7 of 2024, jointly issued by China's Ministry of Commerce, Ministry of Ecology and Environment, and General Administration of Customs.
Policy Background: National Support for "Bonded Maintenance"
The new regulation reflects China's strategic push to develop foreign trade through innovative business models. Building upon earlier directives including the State Council's Opinions on Accelerating the Development of New Forms and Models of Foreign Trade and the Opinions on Improving the Development Level of Processing Trade from ten ministries, the policy specifically encourages high-tech, high-value-added, and environmentally compliant maintenance services. By leveraging the advantages of bonded zones, China aims to strengthen its repair industry and enhance the value proposition of domestic manufacturing.
Key Policy Updates: Expanded Scope and Flexible Procedures
The announcement introduces three significant changes:
- Broadened Maintenance Scope: Comprehensive bonded zone enterprises can now service aircraft engine nacelles, automotive transmissions, projectors, and other high-tech products. This eliminates the need for overseas shipping for many repairs.
- Domestic Market Access: Zone-based enterprises may perform bonded maintenance on their parent company's domestically sold products, with repaired goods returning to the Chinese market without product catalog restrictions.
- Integrated Cross-Border Maintenance: Domestic products requiring repair that fall within the bonded zone maintenance catalog can enter these zones for service before direct re-export, streamlining international maintenance operations.
Practical Benefits for Businesses and Consumers
The policy delivers tangible advantages for multiple stakeholders:
For enterprises:
- Reduced operational costs through minimized cross-border transportation
- Expanded business opportunities in high-value technical maintenance
- Enhanced domestic service capabilities and customer satisfaction
For consumers:
- Shorter repair cycles with domestic service options
- Potential cost reductions from eliminated international shipping and tariffs
- Higher quality assurance through bonded zone service standards
Regulatory Oversight and Compliance Requirements
The policy maintains strict operational controls. Comprehensive bonded zone management committees must conduct regular evaluations covering workplace safety, environmental protection, and customs compliance. Enterprises violating regulations face operational suspensions until completing required rectifications, ensuring all maintenance activities meet established standards.
The announcement supersedes previous conflicting regulations, establishing itself as the current authoritative framework for bonded maintenance operations in China. This regulatory update is expected to significantly advance the country's bonded maintenance sector, contributing to higher-quality foreign trade development while delivering concrete benefits to businesses and end-users alike.