The Zhuhai Enterprises' Illegal Activities In Processing Trade And Customs Supervision

Processing trade has accounted half of China's exports and plays a more andmore important role in China's economy. Meanwhile, smuggling throughprocessing trade channel becomes increasingly severe and is to be taken as thefocus and difficult point of supervision by Chinese Customs. The paper firstdescribes the actual situation of the illegal activities of processing trade inZhuhai and the difficulties of supervision by the Customs, and analyzes thesubjective and objective causes of enterprises' illegal activities in processingtrade on economics basis. Further more, the deep causes of illegal activities inthis field are analyzed by using cost-benefit analysis. The paper also makessome suggestions on the aspects of improving Customs supervision, improvingtax system, severely punishing the enterprises that violate the law and disciplineand strengthening enterprises' compliance with the law in order to reduce theobjective factors of the illegal activities in processing trade, regulatesenterprises' operation activities and establishes favorable environment ofcompetition by reforming Customs' management in processing trade.