China Allows Letter of Guarantee

Pointing out that a number of methods, including cash deposits, are available for organizations engaged in international trade to pay customs duty deposits, the Ministry of Commerce, General Administration of Customs, and China Banking Regulatory Commission issued Announcement 71 allowing letters of guarantee to be used for deposits.

Announcement 44 issued on July 23, 2007 specifies that enterprises in the eastern region engaging in processing trade of products under the restricted category are required to make "actual payment" of customs duty deposits. Announcement 71 further specifies the payment methods of custom duty deposits.

More information is available from www.tdctrade.com through Small Business Resources (workshops on Customs) and Business Tools.