China Adjusts Restricted/Barred Goods for Processing Trade      

In a move to weather the global financial crisis and keep a stable growth in foreign trade, the Ministry of Commerce and the General Administration of Customs of China on December 31st, 2008 co-issued a revised catalog for goods that are restricted or prohibited for processing trade.
   Up to 1 730 items including textiles, plastic products, wood products and hardware, or 77%, are removed from the existing restricted lists, and 27 items including metal products, cobalt sulfide and palladium chloride are unlisted from the current ban catalog.
   Generally, China's processing trade enjoys more preferential tax compared with general import/export business. Processing trade is defined that China's manufacturers import raw materials/components to make finished products using local technology and manufacturing facilities, and then re-export them to foreign customers. At present China adopts duty-free (including tariffs, value-added tax and consumption tax) policy on process trade.