China (Tianjin) Pilot Free Trade Zone introduced the following policies and measures to support bonded repair and remanufacturing (including aviation bonded repair and remanufacturing).

1. Bonded repair and remanufacturing category:

1.1 Application for inbound bonded repair and remanufacturing re-export business support

Policy Objective: Promote the development of advanced manufacturing and high-end service industries to gather, regulate the management of enterprises to carry out bonded repair and remanufacturing business.

Beneficiaries: Bonded repair and remanufacturing enterprises

Applicable Conditions: Applicable to explore the development of high-tech, high value-added, environmentally friendly requirements of aviation, ships, engineering machinery, CNC machine tools, communications equipment and other bonded repair and remanufacturing re-export business in the Tianjin Pilot Free Trade Zone. On the basis of the experience in the implementation of the project, according to the business development needs, continue to explore the scope of inbound bonded repair and remanufacturing re-export business products.

Policy Highlights:

(1) bonded repair business, refers to the bonded way from abroad there are parts damaged, functional failure, quality defects and other problems of goods or means of transport (hereinafter collectively referred to as "goods to be repaired") for testing, repair, so that the goods to be re-exported after partial restoration of the damaged function or upgrade the original function.

(2) remanufacturing business, refers to the main part of the bonded from abroad does not have the design performance but has the value of recycling the original product (part) as the embryo, the use of special technology, technology, based on the original manufacturing of a new manufacturing, the production of finished products to meet or exceed the original product (part) use function after re-export activities.

(3) Tianjin Municipal Bureau of Commerce, Tianjin Pilot Free Trade Zone Management Committee and Tianjin Customs through active exploration and standardized management, and jointly support the business sector approved by the enterprise application to carry out inbound bonded repair and remanufacturing re-export business.

Issuing Authority: Tianjin Municipal Bureau of Commerce Tianjin Municipal Bureau of Ecology and Environment Tianjin Binhai New Area People's Government Tianjin Customs Tianjin Pilot Free Trade Zone Administrative Committee

Policy Basis: Municipal Bureau of Commerce, Municipal Bureau of Ecology and Environment, Binhai New Area People's Government, Tianjin Customs, Tianjin Pilot Free Trade Zone Administrative Committee on the Issuance of the Pilot Free Trade Zone in China (Tianjin) to Carry Out Bonded Repair and Remanufacturing Business Implementation Measures Notice (Jinshang Industry [2019] No. 6)

Valid Until: June 3, 2024

2. Aviation bonded repair and remanufacturing industry class

2.1 Application to engage in aviation bonded repair and remanufacturing business support

Policy Objective: Support the development of aviation bonded repair and remanufacturing industry

Beneficiaries: Aviation maintenance enterprises

Applicable Conditions: Enterprises located in the Tianjin Pilot Free Trade Zone Airport Area.

Policy Highlights: Tianjin Municipal Bureau of Commerce, Tianjin Port Free Trade Zone Management Committee and Tianjin Customs jointly support enterprises to apply for domestic and foreign aviation bonded repair and remanufacturing business.

Policy Basis: Tianjin Pilot Free Trade Zone Airport Area to Support and Encourage the Development of Aviation Bonded Repair and Remanufacturing Industry Measures (Jin Bao Shui Fa (2019) No. 20)

Valid Until: Currently valid

2.2 Waiver of departure for maintenance of foreign aircraft

Policy Objective: Support the development of aviation bonded repair and remanufacturing industry

Beneficiaries: Airline maintenance enterprises and overseas aircraft operators

Conditions of Application:

(1) The aviation maintenance enterprise is located in the airport area of Tianjin Pilot Free Trade Zone.

(2) overseas aircraft operators entrusted to aviation maintenance enterprises to carry out bonded repair and remanufacturing business.

Policy Basis: Tianjin Pilot Free Trade Zone Airport Area to Support and Encourage the Development of Aviation Bonded Repair and Remanufacturing Industry Measures (Jin Bao Shui Fa (2019) No. 20)

Valid Until: Currently valid

2.3 Permitted to repair foreign aircraft to complete the domestic voyage before leaving the country

Policy Objective: Support the development of aviation bonded repair and remanufacturing industry

Beneficiaries: Airline maintenance enterprises and overseas aircraft operators

Applicable Conditions:

(1) Aviation maintenance enterprises are located in the Tianjin Pilot Free Trade Zone Airport Area.

(2) Overseas aircraft operators entrust aviation maintenance enterprises to carry out bonded repair and remanufacturing business.

Policy Highlights: After completing the maintenance, the foreign aircraft can continue to fly the approved but not yet completed domestic voyage and then re-departure.

Policy Basis: Tianjin Pilot Free Trade Zone Airport Area to Support and Encourage the Development of Aviation Bonded Repair and Remanufacturing Industry Measures (Jin Bao Shui Fa (2019) No. 20)

Valid until: Currently valid

2.4 Exemption for outbound maintenance of foreign aircraft parts from departure

Policy Objective: Support the development of aviation bonded repair and remanufacturing industry

Beneficiaries: Airline maintenance enterprises and overseas aircraft operators

Applicable Conditions:

(1) Aviation maintenance enterprises are located in the airport area of Tianjin Pilot Free Trade Zone.

(2) Overseas aircraft operators entrust aviation maintenance enterprises to carry out bonded repair and remanufacturing business.

Policy Highlights: The maintenance of foreign aircraft components (such as engines, landing gear and computers, etc.) need to be sent out for repair, without first leaving the country, can be directly transferred to another enterprise with the appropriate maintenance qualifications for maintenance, and after repair directly back to the Tianjin Pilot Free Trade Zone airport area.

Policy Basis: Tianjin Pilot Free Trade Zone Airport Area to Support and Encourage the Development of Aviation Bonded Repair and Remanufacturing Industry Measures (Jin Bao Shui Fa (2019) No. 20)

Valid Until: Currently valid

2.5 Customs AEO Advanced Certification Support

Policy Objective: Support the development of aviation bonded repair and remanufacturing industry

Beneficiaries: Aviation maintenance enterprises

Applicable Conditions: Aviation maintenance enterprises are located in the airport area of Tianjin Pilot Free Trade Zone.

Policy Highlights: Tianjin Customs support aviation maintenance enterprises to apply for Customs AEO Advanced Certification Enterprise.

Policy Basis: Tianjin Pilot Free Trade Zone Airport Area to Support and Encourage the Development of Aviation Bonded Repair and Remanufacturing Industry Measures (Jin Bao Shui Fa (2019) No. 20)

Valid Until: Currently valid

2.6 Maintenance of domestic lessees to lease foreign aircraft exempt from departure

Policy Objective: Support the development of aviation bonded repair and remanufacturing industry

Beneficiaries: Aviation maintenance enterprises

Applicable conditions:

(1) Aviation maintenance enterprises are located in the Tianjin Pilot Free Trade Zone Airport Area.

(2) aviation maintenance enterprises contracted by domestic lessees of overseas aircraft inspection, commissioning, maintenance and remanufacturing business.

Policy Highlights: Aviation maintenance enterprises directly contracted by domestic lessees to lease the use of foreign aircraft testing, commissioning, maintenance and remanufacturing business, the aircraft does not need to actually leave the country.

Policy Basis: Tianjin Pilot Free Trade Zone Airport Area to Support and Encourage the Development of Aviation Bonded Repair and Remanufacturing Industry Measures (Jin Bao Shui Fa (2019) No. 20)

Valid Until: Currently valid

2.7 Bonded imported aircraft parts and consumables support

Policy Objective: Support the development of aviation bonded repair and remanufacturing industry

Beneficiaries: Aviation maintenance enterprises

Applicable Conditions:

(1) Aviation maintenance enterprises are located in the airport area of Tianjin Pilot Free Trade Zone.

(2) aviation maintenance enterprises from the customs special supervision zone to buy parts and consumables.

Policy Highlights: The aviation maintenance enterprises outside the special customs supervision area of Tianjin Pilot Free Trade Zone Airport can directly purchase the necessary parts and consumables for repair and remanufacturing from the enterprises in the special customs supervision area in a bonded manner.

Policy Basis: Tianjin Pilot Free Trade Zone Airport Area to Support and Encourage the Development of Aviation Bonded Repair and Remanufacturing Industry Measures (Jin Bao Shui Fa (2019) No. 20)

Valid Until: Currently valid

2.8 Exemption of aircraft from lease inspection

Policy Objective: Support the development of overseas aircraft leaseback inspection business

Beneficiaries: Domestic aircraft lessees

Applicable Conditions:

(1) The aviation maintenance enterprise is located in the airport area of Tianjin Pilot Free Trade Zone

(2) The completion of overseas aircraft leaseback inspection and delivery to domestic lessees.

Policy Highlights: Tianjin Pilot Free Trade Zone Airport Area aviation maintenance enterprises to carry out foreign aircraft leasing inspection business, and foreign leasing company aircraft to be delivered to the domestic lessee under the next lease, in the aviation maintenance enterprises to complete the leasing inspection, without first leaving the re-entry.

Policy Basis: Tianjin Pilot Free Trade Zone Airport Area to Support and Encourage the Development of Aviation Bonded Maintenance Remanufacturing Industry Measures (Jin Bao Shui Fa (2019) No. 20)

Valid Until: Currently valid

2.9 Customs Special Supervision Zone Convenient Customs Clearance Measures

Policy Objective: Support the development of aviation bonded repair and remanufacturing industry

Beneficiaries: Enterprises in the Customs Special Supervision Zone

Conditions: Aviation maintenance enterprises are located in the Tianjin Pilot Free Trade Zone Airport Area within the Customs Special Supervision Zone

Policy Highlights: Support the enterprises in the Tianjin Pilot Free Trade Zone Airport Area Customs Special Supervision Zone using electronic fencing block chain verification and other technical means to promote "batch in and out, centralized declaration" convenient customs clearance mode.

Policy Basis: Tianjin Pilot Free Trade Zone Airport Area to Support and Encourage the Development of Aviation Bonded Repair and Remanufacturing Industry Measures (Jin Bao Shui Fa (2019) No. 20)

Valid until: Currently valid

2.10 Undertake bonded repair and remanufacturing of aviation parts entrusted by domestic non-customs special supervision zone enterprises to support the business

Policy Objective: Support the development of aviation bonded repair and remanufacturing industry

Beneficiaries: Aviation maintenance enterprises

Applicable Conditions: Aviation maintenance enterprises located in the Tianjin Pilot Free Trade Zone Airport Area within the Customs Special Supervision Zone

Policy Highlights: Support the aviation maintenance enterprises in the special customs supervision area, to undertake the domestic non-customs special supervision zone aviation maintenance enterprises entrusted, from outside the engine, landing gear and nacelles and other aviation parts of the bonded repair and remanufacturing business.

Policy Basis: Tianjin Pilot Free Trade Zone Airport Area to Support and Encourage the Development of Aviation Bonded Repair and Remanufacturing Industry Measures (Jin Bao Shui Fa (2019) No. 20)

Valid Until: Currently valid

2.11 Cross-border leasing and re-leasing support for aircraft, aviation materials and spare parts

Policy Objective: Support the development of aviation bonded repair and remanufacturing industry

Beneficiaries: Enterprises that carry out leasing business

Applicable conditions:

(1) Enterprise registered in China (Tianjin) Pilot Free Trade Zone, and under the administrative jurisdiction of Tianjin Port Free Trade Zone Administrative Committee.

(2) Enterprises carry out cross-border leasing and re-leasing of aircraft, aviation materials, spare parts, etc..

Policy Highlights: Enterprises can apply the "territorial declaration, port inspection and release" model, Ship the leased aviation materials that have not gone through customs formalities directly from overseas to domestic customers. Relevant taxes and fees are levied on the basis of the amount of the relevant contracts signed by the enterprise and overseas suppliers. Support the above-mentioned enterprises to carry out offshore service trade involving the above-mentioned businesses.

Policy Basis: Several Measures to Further Support the Development of Aviation Bonded Repair and Remanufacturing Industry in Tianjin Airport Area of China (Tianjin) Pilot Free Trade Zone (Jin Bao Shui Fa (2022) No. 6)

Valid Until: March 12, 2026

2.12 Support the establishment of an aviation spare parts distribution center

Policy Objective: Support the development of aviation spare parts distribution business

Beneficiaries: Enterprises that carry out distribution business

Applicable conditions: Enterprise registered in China (Tianjin) Pilot Free Trade Zone, and under the administrative jurisdiction of Tianjin Port Free Trade Zone Administrative Committee.

Policy Highlights: Enterprises can set up distribution centers in comprehensive bonded zones, relying on policies such as replacement of standard parts and tax exemption during the warranty period, the company develops aviation spare parts distribution business.

Policy Basis: Several Measures to Further Support the Development of Aviation Bonded Repair and Remanufacturing Industry in Tianjin Airport Area of China (Tianjin) Pilot Free Trade Zone (Jin Bao Shui Fa (2022) No. 6)

Valid Until: March 12, 2026

2.13 Exempted departure for domestic lease of overseas aircraft after maintenance

Policy Objective: Support the development of aviation leasing industry

Beneficiaries: Enterprises that carry out leasing business

Applicable conditions: Enterprise registered in China (Tianjin) Pilot Free Trade Zone, and under the administrative jurisdiction of Tianjin Port Free Trade Zone Administrative Committee.

Policy Highlights: Enterprises will continue to undertake and perform leasing business of overseas aircraft after maintenance or remanufacturing, without actually leaving the country.

Policy Basis: Several Measures to Further Support the Development of Aviation Bonded Repair and Remanufacturing Industry in Tianjin Airport Area of China (Tianjin) Pilot Free Trade Zone (Jin Bao Shui Fa (2022) No. 6)

Valid Until: March 12, 2026

2.14 Engine overseas maintenance and replacement support

Policy Objective: Solve the policy obstacle that the engine on the original overseas aircraft cannot go through customs clearance procedures when it needs to be repaired separately, support the development of aviation bonded maintenance and remanufacturing industry

Beneficiaries: Aviation maintenance and remanufacturing enterprises

Applicable conditions:

(1) Enterprise registered in China (Tianjin) Pilot Free Trade Zone, and under the administrative jurisdiction of Tianjin Port Free Trade Zone Administrative Committee.

(2) In the process of bonded repair and remanufacturing, enterprises send engines overseas for repair or replacement.

Policy Highlights: According to the airworthiness requirements, in the process of bonded maintenance and remanufacturing, the company will send the engines that need to be sent overseas for repair or replacement in the form of "additional declaration" to go through customs clearance procedures and send them overseas.

Policy Basis: Several Measures to Further Support the Development of Aviation Bonded Repair and Remanufacturing Industry in Tianjin Airport Area of China (Tianjin) Pilot Free Trade Zone (Jin Bao Shui Fa (2022) No. 6)

Valid Until: March 12, 2026

2.15 Aircraft off-site financial leasing support

Policy Objective: Support eligible businesses to ship aircraft for financial leasing directly to their final destination

Beneficiaries: Enterprises that carry out leasing business

Applicable conditions:

(1) Enterprise registered in China (Tianjin) Pilot Free Trade Zone, and under the administrative jurisdiction of Tianjin Port Free Trade Zone Administrative Committee.

(2) Enterprises purchasing overseas aircraft in the special customs supervision zone

Policy Highlights: Aircraft entering from other ports in China and then sold to enterprises in other special customs supervision areas for financial leasing shall be directly arrived at the destination in the form of "remote supervision".

Policy Basis: Several Measures to Further Support the Development of Aviation Bonded Repair and Remanufacturing Industry in Tianjin Airport Area of China (Tianjin) Pilot Free Trade Zone (Jin Bao Shui Fa (2022) No. 6)

Valid Until: March 12, 2026

2.16 Aviation Remanufacturing Business in Comprehensive Bonded Area support

Policy Objective: Support the development of aviation bonded maintenance and remanufacturing industry

Beneficiaries: Aviation maintenance and remanufacturing enterprises

Applicable conditions: Enterprise registered in China (Tianjin) Pilot Free Trade Zone, and under the administrative jurisdiction of Tianjin Port Free Trade Zone Administrative Committee.

Policy Highlights: Support enterprises in the airport area to carry out aviation remanufacturing business with high technology content, high added value and low environmental risk in the comprehensive bonded area.

Policy Basis: Several Measures to Further Support the Development of Aviation Bonded Repair and Remanufacturing Industry in Tianjin Airport Area of China (Tianjin) Pilot Free Trade Zone (Jin Bao Shui Fa (2022) No. 6)

Valid Until: March 12, 2026

2.17 Industry alliance platform construction support

Policy Objective: Support the development of aviation bonded maintenance and remanufacturing industry

Beneficiaries: Aviation maintenance and remanufacturing enterprises

Applicable conditions: Enterprise registered in China (Tianjin) Pilot Free Trade Zone, and under the administrative jurisdiction of Tianjin Port Free Trade Zone Administrative Committee.

Policy Highlights: Support China (Tianjin) Pilot Free Trade Zone Tianjin Airport Area Maintenance and Remanufacturing Industry Alliance to build a platform for exchanges, cooperation and interaction, promote the sharing of aviation industry resources, coordinate and solve industrial policy needs, and promote innovation and development.

Policy Basis: Several Measures to Further Support the Development of Aviation Bonded Repair and Remanufacturing Industry in Tianjin Airport Area of China (Tianjin) Pilot Free Trade Zone (Jin Bao Shui Fa (2022) No. 6)

Valid Until: March 12, 2026

Note: The language used herein has been simplified and restated and does not cover the full content of the relevant laws and regulations. You should not act on the above information until you have obtained independent professional advice.