Regulations for temporary entry repairs in Shanghai FTZ unveiled

To align with international trade standards and promote high-level institutional opening-up, Shanghai has released new regulations for goods temporarily allowed to enter the specially supervised area of the China (Shanghai) Pilot Free Trade Zone, including the Lin-gang Special Area. These goods, when brought in for repair, will benefit from bonded measures and exemption from customs duties upon re-export.

If the repaired goods are sold domestically, however, they will be subject to customs duties as per regulations, according to a circular released by Shanghai Municipal Commission of Commerce and other four governmental authorities in the city.

The new policy was formulated to systematically and orderly advance the pilot program for temporary entry repairs and effectively mitigate risks.

According to the circular, eligible enterprises must be legally registered within specified areas of the pilot free trade zone, disclose clear sources and destinations for the goods to be repaired, follow industry norms and environmental standards, and establish information management systems for customs tracking.

The new regulatory scheme emphasizes strict management of goods flow, comprehensive supervision of the repair process, and strict environmental protection measures. Enterprises may be required to rectify their problems or exit the free trade zone if they fail to establish required systems and report significant changes in operations or engage in false declarations or illegal activities.