Chongqing Launches China's First Bonded Remanufacturing Business

Chongqing—Recently, under the supervision of the Chongqing Customs District, Chongqing Yuxiang Intelligent Technology Co., Ltd. successfully imported 1,080 used automotive gearbox control modules into the Chongqing Lianglu Guoyuan Port Comprehensive Bonded Zone. These modules will be remanufactured under a bonded system, marking the official launch of China's first bonded remanufacturing business.

The first batch of automotive gearbox control modules has arrived at the Chongqing Lianglu Guoyuan Port Comprehensive Bonded Zone. (Photo/Chongqing Customs District)

Bonded remanufacturing is a recycling model that takes advantage of customs supervision zones to import used products with remanufacturing potential. These products are then restored, often to a better-than-new condition, using specialized techniques before being exported back to global markets.

Unlike traditional repair or refurbishment, remanufacturing involves a systematic "rebuilding" of products, ensuring that the final quality is indistinguishable from that of new products. Ruan Xijun, Supervisor of Yuxiang Intelligent Technology, compared the process to refurbishing a mobile phone. The phone is first disassembled and cleaned, and then key components are replaced. After reassembly and thorough testing, the device meets the performance standards of a brand-new product.

In early March, Chongqing gained approval to launch bonded remanufacturing. Two weeks later, Yuxiang Intelligent Technology completed the first order, supported by extensive preparations from the company and the city.

Liu Kan, Director of the Foreign Trade Promotion Department of the Chongqing Municipal Commission of Commerce, mentioned that in 2020 the State Council introduced guidelines promoting bonded remanufacturing pilot programs for products such as engines and gearboxes.

Seizing the opportunity, Chongqing authorities quickly selected Yuxiang Intelligent Technology as the lead company for bonded remanufacturing and submitted their qualification to China's Ministry of Commerce and General Administration of Customs.

Ruan recalled that the application process was complex, involving hundreds of pages of documentation on raw material imports and production processes. After thorough preparation, Yuxiang Intelligent Technology received official approval for bonded remanufacturing in March 2025.

Wang noted that despite China's ban on the import of used electromechanical products, Chongqing Customs District implemented a new regulatory approach. Each imported used component is managed with a unique code, ensuring full-process supervision and traceability.

The first batch of gearbox control modules has been put into production on the company's production line. (Photo/Chongqing Customs District)

Bonded remanufacturing holds great market potential. Ruan highlighted that Yuxiang Intelligent Technology’s "first order" is just the start. As operations expand, the company expects to remanufacture around 250,000 automotive gearboxes, engines, and parts annually, generating nearly one billion yuan (USD 138.24 million) in trade volume. Within three years, the company aims to reach an annual output value of two billion yuan.

The Chongqing Municipal Commission of Commerce had previously organized a delegation to Italy to study the local remanufacturing industry and signed a cooperation agreement with Italian enterprises. With the launch of bonded remanufacturing in Chongqing, the collaboration between Yuxiang Intelligent Technology and Italian companies will fully unfold.