Adjustment of Certain Preferential Import Tax Policies Circular
关于调整部分进口税收优惠政策的通知
Adjustments to some preferential import taxation policies.
(Jointly issued by the Ministry of Finance, State Development Planning Commission, State Economic and Trade Commission, Ministry of Foreign Trade and Economic Cooperation, General Administration of Customs and State Administration of Taxation on September 4 2002 and effective as of October 1 2002.)
(财政部、国家计委、国家经贸委、外经贸部、海关总署、国家税务总局于二零零二年九月四日发布，自二零零二年十月一日起施行。)
To the people's governments of all provinces, autonomous regions, municipalities directly under the central government, municipalities with independent development planning and ministries, commissions and direct subsidiary organs of the State Council:
各省、自治区、直辖市、计划单列市人民政府，国务院各部委、各直属机构：
Some preferential import taxation policies currently in force shall be adjusted in an appropriate way. We hereby notify you of relevant adjustment matters as follows:
对现行部分进口税收优惠政策进行适当调整。现将有关调整事项通知如下：
1. Adjustment in respect of taxation policies applicable to relevant investment projects approved before April 1 1996
一、调整1996年4月1日以前批准的有关投资项目的税收政策
Technology transformation projects, capital construction projects (including major construction projects) and foreign investment projects approved prior to April 1 1996, including commodities imported within the remaining quota by projects that enjoy foreign investment policies and are funded with loans from foreign governments and international financial institutions, shall invariably be governed by State Council, The Adjustment of Tax Policies on Imported Equipment Circular (ref. Guo Fa [1997] No.37), that is, equipment imported within the project quota or total investment for the project's own use shall be exempt from import customs duty and import-stage value-added tax, with the exception of commodities listed in the Imported Commodities Not Exempt from Duty and Tax for Domestic Investment Projects Catalogue and Imported Commodities Not Exempt from Duty and Tax for Foreign Investment Projects Catalogue.
1996年4月1日以前，经批准的技朮改造项目、基本建设项目（含重大建设项目）、外商投资项目，包括享受外商投资政策的外国政府贷款和国际金融组织贷款项目在剩余额度内进口的商品，统一按照《国务院关于调整进口设备税收政策的通知》（国发[1997]37号）规定的税收政策执行，即在项目额度或投资总额内进口的自用设备，除《国内投资项目不予免税的进口商品目录》、《外商投资项目不予免税的进口商品目录》所列商品外，免征进口关税和进口环节增值税。
2. Implementation procedures for the adjustment of polices applicable to the "Permitted Category of Foreign Investment Projects that Directly Export all its Products"(hereafter, the All-For-Export Project) as defined in the Foreign Investment Industrial Guidance Catalogue
二、调整《外商投资产业指导目录》中“产品全部直接出口的允许类外商投资项目”（以下简称“全部出口项目”）政策的实施办法
(1) All equipment imported under an All-for-Export Project that is approved as of the implementation date of the policy adjustment shall invariably be subject to the levy of import duty and import-related value-added tax in accordance with the regulations. As of the date when the project is put into production, a joint verification team shall be formed by the Ministry of Foreign Trade and Economic Cooperation (MOFTEC) in conjunction with relevant departments to verify the direct export of products. The verification term shall be five years. Specific verification procedures shall be formulated by MOFTEC in conjunction with relevant departments. If exports are proven to be true after the verification, 20% of paid taxes shall be refunded each year, i.e., all paid taxes shall be refunded within five years; and, if exports are proven to be untrue, the taxes paid in the relevant year shall not be refunded and tax payments already refunded for the project shall be recovered together with legally-prescribed penalties.
（一） 自政策调整实施之日起新批准的全部出口项目项下进口设备，一律照章征收进口关税和进口环节增值税。自项目投产之日起，由外经贸部会同有关部门组成联合核查小组，对产品直接出口情况进行核查，核查期5年，具体核查办法由外经贸部会同有关部门制定。经核查后如情况属实，每年返还已纳税额的20％，5年内全部返还；如情况不实，当年税款不再返还，同时追缴该项目已返还的税款，并依法予以处罚。
(2) The tax-exemption policy shall still be applicable to an All-for-Export Project that is already approved before the implementation date of the policy adjustment and still needs to import equipment under such project, provided that the relevant department conducts an investigation in respect of the direct export of products within the five-year verification period commencing from the date when the project is put into production. For an All-for-Export Project that is approved before the implementation date of the policy adjustment and has completed its import of equipment, no verification shall be made of product exports prior to the implementation date of the policy adjustment and, in the remaining verification period after the implementation date of the policy adjustment, selective investigation will be conducted of product exports. Problems discovered in the investigation mentioned above shall be handled in accordance with the laws. Specific procedures shall be formulated by MOFTEC in conjunction with relevant departments.
（二） 政策调整实施之日前已批准的全部出口项目仍需继续进口该项目项下设备的，仍执行免税政策。但自项目投产之日起5年核查期内，有关部门需对产品直接出口情况进行调查；政策调整实施之日前已批准的全部出口项目完成了设备进口的，对政策调整实施之日前的产品出口情况不再核查，在政策调整实施之日后的剩余核查期内，对产品出口情况有选择地进行调查。对于上述调查中发现的问题将依法进行处理、具体办法由外经贸部会同有关部门制定。
(3) The procedures for refund of tax payments within five years in connection with equipment imported by newly approved All-for-Export Projects shall be in accordance with the Tax Refund for Certain Imported Commodities Circular [ref. (94) Cai Yu Zi No.42] jointly issued by the Ministry of Finance, State Economic and Trade Commission, State Administration of Taxation and General Administration of Customs.
（三） 新批准的全部出口项目进口设备5年内返还税款的办法，按照财政部、国家经贸委、税务总局、海关总署《关于对部分进口商品予以退税的通知》〔（94）财预字第42号〕的规定执行。
3. Generally speaking, from now on, no application for reduction and exemption of import duty and tax for individual projects shall be accepted, examined and approved
三、今后一般不再受理和审批个案减免进口税项目的申请
Generally speaking, from now on, no application for reduction and exemption of import duty and tax for individual projects shall be accepted, examined and approved. No tax exemption shall be granted to raw materials for production, the 20 commodities prescribed by the State Council that are not entitled to tax reduction or exemption, and vehicles imported for major events sponsored in various localities. Other commodities that really truly require import tax reduction or exemption shall be subject to strict examination by the Ministry of Finance in conjunction with relevant departments and shall be reported to the State Council for approval.
今后一般不再受理和审批个案减免进口税项目的申请，对生产性原材料、国务院规定的一律不予减免税的20种商品以及各地为举办大型活动所需进口的车辆一律不予免税。其它确需减免进口税的商品，由财政部会同有关部门从严把握，报国务院审批。
4. This Circular shall be implemented as of October 1 2002.
四、本通知自2002年10月1日起实施。
Endnote
1 Translation provided by Freshfields Bruckhaus Deringer.
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