On March 18th, Hangzhou Customs officially initiated the "Pilot Reform of Processing Trade Supervision of Enterprise Groups", and Zhejiang Hailiang Co., Ltd. became the only copper processing enterprise as the pilot reform in China.
"After becoming a pilot, it is expected that enterprises can save more than 4 million yuan in operating costs this year. As the business scope expands, the cost will further drop. It is estimated that enterprises operating costs will be reduced by 28 million yuan during the" 14 th Five-Year Plan "period." Said Jiang Limin, director and general manager of purchasing center of Hailiang Co., Ltd..
Zhejiang Hailiang Co., Ltd. and its affiliated Zhejiang Keyu Metal Materials Co.Ltd, which are located in Zhuji, Zhejiang Province, are one of the first two pilot enterprises of Hangzhou Customs which carry out the reform of processing trade supervision of enterprise groups. After applying the supervision mode of processing trade of enterprise groups, the circulation of bonded materials between Hailiang and its affiliated Keyu Metal will no longer be limited. When one company is short of materials, these materials can be transfered from another enterprise in time, and it is not necessary to use funds to re-purchase them from abroad. At the same time, it is not necessary to go through the formalities of filing with the customs to carry out outward processing business, and it is not necessary to provide guarantees for all outward processing, thus facilitating the deployment of bonded goods, effectively reducing occupation of fund and institutional transaction costs.
The pilot reform of processing trade supervision of enterprise groups is an important measure taken by the General Administration of Customs to further promote reforms to streamline the government, delegate power, and improve government services and optimize the supervision of processing trade. This innovative measure breaks through the traditional supervision mode of processing trade with a single contract or a single enterprise as a unit, takes the enterprises in the same group as a whole for supervision, which solves the problem that bonded materials are difficult to transfer among enterprises in the past. The enterprise groups in the pilot project can realize the independent storage and free transfer of bonded materials among multiple member enterprises within the group, simplify the handling procedures of outward processing and domestic sales, and exempt some link guarantees.