Bonded Repair

Bonded Repair refers to a business model in which enterprises bring goods or transport vehicles with damaged parts, functional failures, or quality defects from overseas into the country (or send them from within the country to overseas) for testing and repair, and then re-export them after repair. This model is usually carried out relying on special customs supervision areas or bonded premises. Raw materials, parts, and components needed for repair that enter the country can enjoy bonded policies, i.e., temporary exemption from import tariffs and import-stage taxes, and are re-exported after repair is completed. Use cases include: after-sales repair of high-value-added equipment, aviation equipment, precision instruments, electronic products, etc. Notes: Enterprises need to have the corresponding qualifications and file with customs; repaired goods must not be sold or circulated domestically; scraps and replacement parts generated during repair must be handled according to regulations; if the repaired goods are converted to domestic sales, taxes must be paid retroactively. Compared with 'general trade repair,' bonded repair can reduce enterprises' capital occupation; unlike 'processing trade,' its object is old parts awaiting repair rather than new materials and parts.