No cost Offsetting Goods (code 3100) Operating Guide

        The Customs has set up a special supervision method of “Goods without cost compensation” (code 3100) for enterprises’ import and export goods that need to be replaced due to quality problems in international trade. Today xiaobian will take you to understand how to operate.

I. Scope of application
I Define

        Non-compensatory goods refer to those goods identical with the original goods or in accordance with the contract, which are compensated free of charge or replaced by the consignor, carrier or insurance company for reasons of damage, shortage, poor quality or non-conformity of specifications of import and export goods after they are released by the Customs.
II The following situations are not applicable to this supervision method

        (I) Do processing, feed processing trade imported materials and export finished products because of the damage, shortage, poor quality or specifications reason, by the consignor of import and export goods, the carrier or insurance company free compensation or replacement is the same as the original goods or goods are in conformity with the contract stipulations, one for each of materials or products not specified return way of regulation. Such as: “Incoming materials and parts return” (0300), “incoming materials and parts return” (0700); “Return and exchange of finished supplied materials” (4400), “Return and exchange of finished imported materials” (4600).

        (II) The original import and export goods, which are related to the import and export goods without compensation at any cost, shall be subject to “other” supervision (9900).

II. Deadline for

        The obligatory duty payer shall, within the claim period stipulated in the original import and export contract but not exceeding 3 years starting from the date of the import and export of the original goods, declare to the Customs to complete the import and export formalities of goods without compensation.

III. Material requirements are attached to the declaration
I The following documents shall be submitted when declaration is made for imports of goods without compensation at cost:

        (I) Original import goods declaration form;

        (II) The export declaration form for returning the original import goods and transporting them out of the country or the certificate of abandoning the handling of the original import goods handed over to the Customs for handling, and if the original import goods are short, it is not required to submit it;

        (III) The original import goods tax payment letter or “tax exemption certificate”;

        (IV) A claim agreement signed by the buyer and the seller;

        (V) Where the Customs deems it necessary, the consignee or consignor shall also submit inspection certificates issued by qualified commodity inspection institutions concerning damage, shortage, poor quality or inconsistent specifications of the original import goods or other relevant certification documents.
II The following documents shall be submitted when declaration is made for the export of goods without compensation at cost:

        (I) Original export goods declaration form;

        (II) Import declaration form for returning original export goods into China. It is not necessary to submit the import declaration form for the return of the original export goods to the country if the goods are exported without compensation at any cost due to the shortage of the original export goods.

        (III) Original export goods tax payment letter or “tax exemption certificate”.

        (IV) A claim agreement between the buyer and the seller.

        (V) When the customs considers it necessary, the obligatory duty payer shall also submit inspection certificates issued by qualified commodity inspection institutions showing damage, shortness, poor quality or inconsistent specifications of the original export goods or other relevant certification documents.

IV. Provisions on the Administration of Taxation

        The obligatory duty payer shall, within the claim period stipulated in the original import and export contract but not exceeding 3 years starting from the date of the import and export of the original goods, declare to the Customs to complete the import and export formalities of goods without compensation.

V. Warm prompt

        (I) If import and export goods without compensation fall within the scope of inspection Catalogue of Inspection and Quarantine Law, the customs clearance form of export/entry goods shall be provided.

        (II) Import customs declaration supervision mode corresponding to the nature of tax collection and exemption: “general tax” (101), “other statutory” (299), export customs declaration supervision mode corresponding to the nature of tax collection and exemption: “other statutory” (299).

        (III) The number of the original import and export goods declaration form shall be filled in the column of “Associated Declaration Form” of the compensation import and export goods declaration form and the return and export goods declaration form.

Article source：Xiao er of customs affairs