Leasing Trade Export Operation Guide

Complete Guide to Leasing Trade Export and End-of-Term Handling

Hello everyone! Today let’s talk about leasing trade exports. Based on the lease duration, customs classifies them into two supervision modes: leases under one year fall under “Lease Less Than One Year,” code 1500; leases of one year or more fall under what we’ll focus on today — “Leasing Trade,” supervision code 1523. The content is quite dense, so I recommend bookmarking this for easy reference!

Step 1: Initial Leasing Export Remember one core principle: for leases exceeding one year, the declaration must use the “Leasing Trade” supervision mode.

The key to smooth clearance lies in preparing a complete set of documents, mainly two categories:

• Basic documents: Commercial Invoice and Packing List.
• Key documents: Leasing Agreement and Leasing Statement.

The Leasing Agreement must clearly state: the lease period, the rental amount, and the “re-export clause” specifying whether the goods will be returned or purchased at the end of the lease.

The Leasing Statement is your explanatory document to customs, covering four things: what the goods are, how they’re being leased, how they’ll be used overseas, and how they’ll be handled at the end of the lease.

With documents in order, the goods can be exported smoothly. But the real test comes when the lease period is about to end.

Step 2: When the lease is ending, you have three options

First, a reminder: please decide on your plan at least 1 month before the lease expires to allow time for operations.

Option 1: Overseas retention/purchase (goods don’t come back) This essentially means selling the goods to the foreign customer. You need to retroactively complete formal export sale procedures under “General Trade.” Key restriction: This retroactive filing must be handled by the same customs broker who processed your initial leasing export! Required documents: Retention/purchase agreement, purchase statement, invoice and packing list, and bank receipt vouchers proving payment. Special note: If you extend the lease first and then purchase, you only need to provide the foreign exchange receipt from the second transaction.

Option 2: Lease extension Key restriction: You can only extend once, and only with the original customer — you cannot sublease to someone else. The extension duration is negotiated between you and the client. Required documents: Prepare a new extension agreement, extension statement, and corresponding invoice and packing list.

Option 3: Return shipment to China Critical point: The goods must actually arrive at a Chinese port (e.g., Tianjin Port) and complete import customs clearance before the lease contract expires! The timing is extremely strict. There are two core declaration requirements:

• Declaration consistency: The declared value and net weight at re-import must exactly match the original leasing export declaration.
• Tax documentation: You must provide customs with the “Certificate of No Export Tax Refund” or “Certificate of Tax Paid” issued by the tax bureau — this is essential for processing the return.

Finally, here’s a quick summary of three core points:

• Export classification: Lease > 1 year, firmly choose supervision code 1523 (Leasing Trade).
• Early decision: Decide on retention/purchase, extension, or return at least 1 month before expiry.
• Path rules: Choose retention: go back to the original customs broker and file under General Trade. Choose extension: only one renewal with the original customer. Choose return: strictly meet port arrival and declaration deadlines, and have your no-refund or tax-paid certificate ready.

In short, with advance planning and a clear understanding of the rules, even complex leasing trade can be handled with confidence. If you have specific questions, feel free to discuss in the comments. If you found this helpful, remember to share it with colleagues who need it. See you next time!