General Administration of Customs, Questions Relevant to the Implementation of the «Foreign Investment Industrial Guidance Catalogue»Circular

Issued: April 4 2002
Applicability: The Thorough Implementation of the «State Council, The Adjustment of Tax Policies on Imported Equipment Circular»Urgent Circular and the State Council, The Adjustment of Tax Polices on Imported Equipment Circular shall continue to be implemented where issues are not mentioned in the Circular (Item Six).

Main contents: The Circular states that foreign investment projects that are under the encouraged category of the Foreign Investment Industrial Guidance Catalogue (the Catalogue) and that involve technology transfer should continue to enjoy exemption from tariffs and import value-added tax on their equipment if it is imported for their own use within the total amount of investment, with the exception of items listed in the Import Commodities Not Exempt from Duty and Tax for Foreign Investment Projects Catalogue (Item One). The Circular also allows investment projects in the encouraged category or type B of the restricted category approved before April 1 2002 to continue to enjoy preferential tax policies in accordance with the Thorough Implementation of the«State Council, The Adjustment of Tax Policies on Imported Equipment Circular» Urgent Circular.
Related legislation: Foreign Investment Industrial Guidance Catalogue (Amended in 2007), Oct 31 2007, CLP 2007 No.10 p22; Thorough Implementation of the«State Council, The Adjustment of Tax Policies on Imported Equipment Circular» Urgent Circular, Dec 31 1997, CLP 1998 No.1 p11; Import Goods Not Exempt from Taxation for Foreign Investment Projects Catalogue (Trial Implementation), Dec 31 1997, CLP 1997 No.2 p13 and State Council, The Adjustment of Tax Polices on Imported Equipment Circular, Dec 29 1997, CLP 1997 No.1 p11