How China's in-zone direct switch lets bonded and non-bonded goods change status without moving — policy basis, process and inventory cost savings with official data.
For importers selling into both the domestic and international markets, a common supply-chain arrangement is "enter the bonded warehouse first, decide on domestic or export sales later." In the past, converting bonded goods to domestic sale required exiting the zone, paying duties and clearing customs through a chain of procedures. Today, the "in-zone direct switch" (区内直转) lets bonded and non-bonded goods switch status with a near one-click operation — the goods do not physically move. The mechanism is formalized in GACC Announcement No. 185 (2023) on optimizing status-based supervision of goods stored in comprehensive bonded zones, effective December 20, 2023. This article explains the policy and what it means for bonded warehouse inventory management. Always confirm filing requirements against official GACC and local customs publications.
What Is the In-Zone Direct Switch: One Click, Goods Stay Put
The in-zone direct switch is an optimization of status-based supervision in comprehensive bonded zones: when stored goods switch between bonded and non-bonded status, they no longer need to be physically transported out of the zone and back. The status change happens inside the zone while the goods stay in place. Under GACC Announcement No. 185 (2023), the direct switch covers two directions — non-bonded goods declared to become bonded storage goods, and bonded storage goods that, after completing customs formalities, become non-bonded goods. Enterprises file through the Jin-Guan-II special supervision zone system, submitting the bonded book-keeping list marked "in-zone direct switch" together with the corresponding release list; goods may be moved to a designated inspection-holding area during the filing. Chengdu Hi-Tech Comprehensive Bonded Zone and others have piloted the model, proving that "goods don't move, status changes" works in practice.
The direction is consistent with the State Council's May 2026 endorsement of GACC's 24 measures for upgrading comprehensive bonded zones — zones are shifting from traditional processing and logistics toward deeper, higher-end production-service integration. The scale of the platform matters: the country's 168 comprehensive bonded zones handled RMB 7.2 trillion of import and export value in 2025, about 16% of national foreign trade (GACC press conference, 2026). For warehouse operators, status-based supervision means in-zone operations can be organized far more efficiently.
The Value: Better Bonded Warehouse Inventory Management and Less Capital Tied Up
The most direct benefit of the in-zone direct switch is flexibility in bonded warehouse inventory management:
| Dimension | Traditional domestic-sale route | In-zone direct switch |
|---|---|---|
| Goods movement | Physical exit from the zone | No movement; status changes in zone |
| Steps involved | Multiple declarations, handoffs | Far fewer steps, higher efficiency |
| Inventory cost | Double handling, storage gaps | One facility, seamless operations |
| Working capital | Passive duty-payment timing | Flexible timing matched to sales |
| Best suited for | Importers with fixed domestic sales | Dual-channel importers, seasonal campaigns |
In practice: export orders go out as bonded goods; domestic orders convert via bonded-to-domestic procedures. Companies no longer need to "bet" on market direction by pre-splitting inventory. Goods sit in bonded status first; once the sales channel is decided, the in-zone switch flips them to domestic status — flexible in both directions, with lower inventory and working-capital pressure. Real cases confirm the operating logic: at Xuzhou Comprehensive Bonded Zone, Nanjing Customs helped construction-machinery enterprises switch non-bonded goods directly to bonded status "without leaving the checkpoint" — before the optimization, around 200 machines a day needed re-loading, short-haul transfer, gate passes and unloading, causing checkpoint congestion and extra logistics cost (NDRC case briefing, 2023). That is the same principle at work: status changes in place, handling eliminated.
Bonded to Non-Bonded Process: Four Steps to Domestic Sale
- Entry: Goods are declared into the bonded warehouse with duties deferred (at Yunxiu, entry takes 1 working day).
- Status-switch filing: Apply to customs for the in-zone status change through the Jin-Guan-II system, with the required documentation and information per GACC Announcement No. 185 (2023).
- Duty settlement and release: Complete duty payment and release formalities for domestic sale.
- Domestic delivery: Sort and deliver per orders after release (Yunxiu delivery takes 1-3 days).
Filing paths and documentation vary by zone and commodity type — confirm with the local customs office or a professional bonded warehouse operator before proceeding. The applicable rules prevail as officially published by the General Administration of Customs.
Who Benefits Most from Status-Based Supervision
Three groups gain the most. First, domestic-and-export dual-channel importers: they keep one inventory pool and decide the sales destination later, instead of committing goods to a channel at purchase time. Second, cross-border e-commerce operators running 1210 bonded-stocking: when part of a stock sells well on domestic channels outside the cross-border cap, the in-zone switch lets that portion leave as ordinary bonded-to-domestic goods without a separate re-import trip. Third, brands with seasonal campaigns: pre-position goods in bonded status, convert only what sells. For these groups, the switch changes inventory from a forecast bet into a response tool — which is precisely the advantage of bonded warehousing over ordinary storage.
FAQ: In-Zone Direct Switch Questions
How do I convert bonded goods to domestic sale? Use the in-zone direct switch to change status from bonded to non-bonded without moving the goods; the exact filing path depends on the local customs office and follows GACC Announcement No. 185 (2023).
Do goods need to leave the zone for an in-zone switch? No. The defining feature is that goods stay put while status changes inside the zone — eliminating repeated handling and transport.
Can bonded and non-bonded goods be managed in one warehouse? Under status-based supervision, bonded and non-bonded goods are managed by category with switchable status. Yunxiu runs separate bonded and non-bonded facilities with integrated systems for this purpose.
How much can the in-zone switch save? It removes transport, re-handling and repeated declaration between zone exit and re-entry. Savings depend on volume, frequency and operating model — model it against your own flows.
Making the In-Zone Direct Switch Real: Bonded and Non-Bonded in One Network
Policy needs facilities to become reality. Yunxiu (Shanghai) Information Technology Co., Ltd., founded in 2014, operates a 4,170 m² bonded warehouse alongside a 1,500 m² non-bonded warehouse, plus a 1,000 m² temperature-controlled facility (adjustable 18-25°C zones, 40-60% humidity with automatic regulation). With AEO Advanced Certification, ISO9001, Class-A freight-forwarder qualification and supervised-bonded-warehouse qualification, Yunxiu runs bonded-to-non-bonded status switching as a routine service — linked bonded and non-bonded facilities, managed by integrated systems, so the policy advantage actually reaches your inventory.
Free consultation: +86 18917757529 / jaysun@yun-xiu.cn — ask for a bonded warehouse inventory management and status-switching proposal.
Related reading: Bonded goods domestic sale guide · Bonded warehouse inventory account management
This article was written by the Yunxiu Supply Chain Research Center. Policy content prevails as officially published by the General Administration of Customs. Data updated to 2026.
