Term Explanation

Non-Self-Produced Bonded Maintenance

“Non-self-produced bonded maintenance” refers to a new business model that allows for the importation of medical devices (goods awaiting maintenance) not manufactured by the corporation, which may have issues such as damaged components, into a designated area for inspection and maintenance under bonded supervision. Once maintained, the devices are re-exported. This approach enables enterprises to integrate their entire industry chain at reduced costs while gaining access to advanced technology.

The nation's first “Non-Self-Produced Bonded Maintenance of Medical Devices” pilot program has recently received approval and been implemented at Plexus Electronics (Xiamen) Corporation, situated in the Xiamen Free Trade Zone. The pilot program signifies the introduction of a high-value policy and the expansion of the bonded maintenance scope within the Xiamen Free Trade Zone. It represents a transition from maintaining self-produced products to the capability of maintaining similar products on a global scale, essentially shifting from “self-produced maintenance” to “global maintenance”. This advancement accelerates the integration of enterprises into the international processing and trading system, laying a solid foundation for entering the high-end medical device industry chain.

“Non-self-produced bonded maintenance” refers to a new business model that allows for the importation of medical devices (goods awaiting maintenance) not manufactured by the corporation, which may have issues such as damaged components, into a designated area for inspection and maintenance under bonded supervision. Once maintained, the devices are re-exported. This new business model combines detection, analysis, repair, and testing services, allowing companies to efficiently consolidate the entire industry chain while accessing advanced technologies. This approach is in high demand and holds significant commercial value in the medical device industry.

“Prior to receiving approval for the pilot program, we were restricted to conducting bonded maintenance solely on products manufactured by our corporation within the comprehensive bonded zone and included in the product maintenance directory”, stated a representative from Plexus Electronics (Xiamen) Corporation, “With the ‘global bonded maintenance’ model, we can now extend our services beyond maintaining our own products to include maintenance projects for products made by other multinational enterprises. This will significantly boost the growth of our business. With the pilot program approved, the new project is set to launch within a month. It is anticipated to boost the maintenance volume by approximately 50,000 units annually and generate an additional revenue of around USD 50 million each year, creating roughly 200 new jobs. Thanks to favorable policies, other multinational enterprises are currently discussing potential reserve projects, and it is anticipated that annual revenue will soon increase by approximately USD 100 million.”

The pilot program, spearheaded by the Xiamen Free Trade Zone, capitalizes on the combined benefits of the "Free Trade Zone + Comprehensive Bonded Zone" policies. It has garnered significant backing from the Xiamen Municipal Commerce Bureau, Xiamen Municipal Bureau of Ecology and Environment, and Xiamen Customs District. This collaboration has led to the creation of a feasibility report for business operations, a comprehensive regulatory plan, an environmental regulation plan, a customs regulation plan, a local regulation plan, and a corporate compliance management plan, all implemented within the Xiamen Free Trade Zone.

The pilot program not only permits “self-produced maintenance” but also “global maintenance”. With its implementation in the Xiamen Free Trade Zone, the Xiamen Free Trade Zone Administrative Committee intends to capitalize on this opportunity by consistently emphasizing the economic value and social benefits of the bonded maintenance industry for medical devices. The goal is to establish a high-level, comprehensive industry chain for medical device maintenance, thereby fostering high-quality development in the Xiamen Comprehensive Bonded Zone.

Translated by Fujian Investment Promotion Center