On The Perfection Of China's Processing Trade Regulation Law

Along with the accomplishment of the Opening and Reform Policy, China processing trade began to develop in 1978. Nowadays, it has become more and more important in China foreign trade. With the fast development of economic globalization and having become one of the WTO members, China has further extended its foreign trade with quick increase of trade volume, through international economic cooperation and international division more extensively and closely than ever before. As a result, the processing trade has accounted for half of China foreign trade.However, in the past 20 years, we still carried out the supervision and control model of the customs of making the contract as the unit and taking paper handbook as the key point in our country and there has been on significant change till today. In this highly competitive age characterized by global information, international marketing, feature products and prompt delivery, the supervision and control model of the customs cannot meet demands of the market and enterprises. In order to solve this problem, the customs should take some reform and innovation and tries to establish a scientific, objective as well as practical control model. Using this model to supervise and restrain the business transactions of those processing enterprises, the customs can embrace the challenges brought by the Chinese entry into WTO.This thesis probes in to general theory about processing trade, reviews the developing course of processing trade, analyses the status quo and existing problem of processing trade in China according to its situation. Besides, it also points out the problems in the present management model by the way of combining the theory and practice as well as comparison. In the author's opinion, the Chinese customs should reconsider the applicability of the traditional supervision and control model to catch up with the constant changes occurred in structuring the processing trade. The author points out a suitable and feasible control model can either solve the conflict between strict control and efficient operation or simplify the trading process, finds out some suggestions and measures on how to improve the model in order to improve the management of processing trade and promote the development of foreign trade.The conclusion of this thesis is the customs, as the supervisory and administrative institution of entry and exit, must strictly strengthen the supervision according to the law, and firmly attack illegal smuggling in processing trade to guarantee the state revenues. At the same time, the customs must take some reforming measures to meet the needs of social and economic development by change the old supervision and control model of the customs so as to promote the development of the processing trade continuously, healthily and steadily. The mainstream of the reforming is that the new models should implement different measures instead of being a fixed one as a result of targeting at different control objects. For the well-credited enterprises, the credit standing customs working modes may be implemented in order to perfect the management system of corporation classification, to optimize the measures of favoring credit standing customs working modes, to consolidate credit encouragement, and to put dynamic credit management into practice. For the big qualified high-tech enterprises, the network control can be employed to realize the sharing of information among all customs departments and the instant communicating between port customs and inland customs so that the customs' decision-making, performing and supervising may be more science-based and eventually, the information-based customs administration will be actualized. Favorable policies should be utilized to encourage the newly emerged and imported machining and trading corporations to gradually enter into the export-oriented processing zones characterized by obtruding centralizing management to answer to the customs clearance request of "one application for customs, one documents-checking, one customs examining" and to intensify the macrocosm supervision of the regional projects. And the innovation of the present the deeper processing carrying-over and the predigestion of examining and approving procedure should be carried out so as to potentate the factual administration of the carrying forward tariff-guarantee commodities.