2394/5000 Explanation of the necessary approval materials for the environmental recycling of cross-border e-commerce bonded inventory returned to the port and for the account verification and cancellation by the mainland customs.

Explanation of Required Approval Documents for the Return of Bonded Inventory to Hong Kong for Environmental Recycling in Cross-Border E-commerce and the Verification of Mainland Customs Accounts

For cross-border e-commerce bonded imported unsold inventory, defective returned goods, expired goods, and infringing samples stored in special regulatory zones and bonded logistics centers (Type B), the return to a licensed institution in Hong Kong for environmental recycling and harmless disposal requires submitting corresponding documents to the competent mainland customs authority in three stages: pre-return approval documents, supporting documents for outbound customs declaration, and verification documents for account books after recycling and disposal. This process completes the bonded account book verification and balance settlement.

I. Pre-approval for Returned Goods and Waste Recycling: Required Documents for Customs Initial Review

When initiating a return and destruction application through the International Trade Single Window, enterprises must simultaneously submit the following paper and electronic accompanying documents. Goods can only leave the bonded area after customs approval:

1. Authorization and Explanation Documents

◦ Authorization certificate for the domestic agent of the cross-border e-commerce business, clearly entrusting the bonded warehousing enterprise to handle the entire process of inventory return and environmental recycling;

◦ "Explanation of the Environmental Recycling of Bonded Inventory," clearly listing the reasons for inventory disposal: slow-moving stock, damaged packaging, substandard quality, expired shelf life, intellectual property infringement, obsolete models, etc.; explaining the objective basis for the goods' inability to be sold domestically or re-exported for resale;

◦ Standardized "Destruction and Disposal Plan for Bonded Imported Goods from Cross-border E-commerce," specifying the goods details, estimated total weight, return port, cross-border transportation method, name of the Hong Kong disposal agency, environmental recycling dismantling/destruction process, disposal completion time limit, and full traceability requirements.

2. Customs Declaration Form

"Cross-border E-commerce Bonded Import Goods Destruction and Disposal Declaration Form," fully completed with ledger number, HS code, country of origin, bonded warehousing batch number, quantity, unit value, total value, corresponding original import verification list number, and disposal method (cross-border return and environmental recycling).

3. Complete Qualification Documents of Hong Kong Environmental Disposal Service Provider

◦ A valid waste disposal license issued by the Hong Kong Environmental Protection Department, covering the categories of goods to be recycled (electronic goods, metal parts, plastics, textiles, lithium battery products, etc.); including WEEE electronic waste and hazardous waste (lithium battery) disposal permits (if applicable);

◦ Service provider's business license, commercial registration certificate, and proof of premises operation; those with ISO9001, ISO14001, or ISO27001 system certifications can also attach these for verification;

◦ A formal "Bonded Inventory Return to Hong Kong Environmental Recycling Entrustment Contract" signed between the company and the Hong Kong recycling organization, stipulating the rights and responsibilities regarding goods transportation, sorting, irreversible destruction, issuance of certificates, and material flow.

4. Supporting Documents for Basic Inventory

◦ Detailed bonded inventory list, listing product name, specifications, date of receipt, quantity, net weight, and gross weight by SKU;

◦ Real-life photographic documentation of the inventory, categorized and archived as intact/unsold, damaged/defective, and expired goods;

◦ Copies of the original bonded import customs declaration and bonded verification list for the corresponding batch, used by customs to verify the inventory data;

◦ Supplementary supporting documentation: For damaged goods, attach a quality inspection report; for expired goods, attach photos of the production date/expiration date label; for infringing goods, attach a notification letter from the brand owner regarding disposal.

5. Special Approval Documents for Special Categories

When inventory contains hazardous waste such as lithium batteries, mercury-containing electronic components, or chemical cosmetics, additionally submit: a hazardous waste identification report and pre-application materials for environmental permits for cross-border transfer between the two locations.

II. Supporting Documents for Outbound Customs Declaration

After customs approval for the return of goods, the company should declare the goods out of the bonded area under supervision method 4561 (Returned Goods). The following documents must be retained in full as core vouchers for subsequent accounting and verification:

1. Formal export customs declaration form and electronic release receipt for returned goods;

2. Cross-border packing list, commercial invoice, China-Hong Kong transport bill of lading, and vehicle weighbridge slip;

3. Bonded area gate release slip;

4. Complete record of loading and inspection at the port of exit (photos and videos);

5. If residual value is involved in the recovery process, a pre-determined estimated recovery value should be provided for customs to calculate taxes accordingly.

III. Final Reporting of Complete Accounting Documents After Environmental Recycling and Disposal in Hong Kong

Within 15 working days of the completion of sorting, dismantling, recycling, or irreversible destruction of goods in Hong Kong, the company shall compile closed-loop documentation and submit it to the competent Customs authority for verification, completing the verification and balancing of bonded account data:

1. Customs Standard Reporting Documents

◦ Complete application for verification of bonded electronic account/Golden Tax Manual II, and "Explanation of Manual Verification Status";

◦ Original copy of the previously approved "Declaration Form for Destruction and Disposal of Bonded Imported Goods in Cross-border E-commerce";

◦ Bonded inventory disposal balance sheet, listing the original quantity received, the quantity returned and recovered for verification, and the remaining inventory, completing the accounting balance calculation.

2. Official Closed-Loop Disposal Certificates Issued by Hong Kong Recycling Organizations (Core Basis for Verification)

◦ Goods Receipt and Warehousing Weight Confirmation Forms Issued by Licensed Hong Kong Recyclers;

◦ Standardized "Certificate of Destruction and Disposal for Bonded Imported Goods Purchased Through Cross-Border E-commerce," clearly indicating the product list, actual net weight disposed of, disposal process, and flow of recycled resources;

◦ Full-Process Traceability Video Data: Photos and video discs of the entire process of goods unloading, sorting, and destruction/smelting for recycling, with a retention period of no less than 3 years;

◦ Hong Kong Environmental Protection Department Filing Receipt and Explanation of Waste Recycling Flow; if residual value of metals, aluminum, etc., is generated, recycling settlement documents are provided simultaneously.

3. Complete Set of Outbound Customs Clearance Documents

Returned export customs declaration, release receipt, cross-border transport documents, and port inspection records are bound together and archived for future reference.

4. Tax-Related and Supplementary Verification Materials

◦ If there is revenue from the recovery of scrap materials, submit relevant documents for declaring the residual value of the scrap materials and complete the supplementary tax declaration as required by Customs.

◦ Supplementary materials required for Customs verification and audit: a comparison table of unit consumption in the ledgers, and an explanation of material loss conversion; if past penalties or verification records are involved, attach the relevant decision documents simultaneously.

5. Supplementary Materials Required by Customs

Depending on the risk level of the ledgers, the competent Customs may additionally request warehouse ledgers, internal inbound and outbound transaction records, and photocopies of all business files required for auditing.

IV. General Notes on Document Submission and Verification

1. All documents must ensure complete consistency between the data on the documents, goods, accounts, and certificates. There must be no discrepancies in product name, specifications, weight, or batch number to avoid customs rejection of verification.

2. From the date of customs approval of the declaration form, the entire process of recycling and disposal in Hong Kong must be completed within 60 days. If completion cannot be made on time, a written extension application must be submitted 7 working days in advance, with a maximum extension of 30 days per extension.

3. The company must retain all approval, customs declaration, and disposal verification documents for at least 5 years to prepare for subsequent customs audits, internal audits, and ESG verifications.

4. Two disposal declaration logics are distinguished: For simple recycling and regeneration without irreversible shredding and destruction, a unified declaration of 4561 returned goods is required; for direct destruction within the zone without cross-border channels, the 0200 material destruction supervision code applies, and the document requirements differ.

Hong Kong phone number: 852-52664790. Leung Kee Recycling Limited is certified to international standards such as Quality Management (ISO 9001), Environmental Management (ISO 14001), and Information Security Management (ISO 27001), ensuring safety, legitimacy, and professionalism. We offer a comprehensive service for returning waste to Hong Kong for recycling and disposal. We look forward to your call and together we can usher in a new era of environmental protection and value creation!