Changes in PRC Import Taxation Policy

Freshfields Bruckhaus Deringer

An imminent change in PRC tax regulations could raise costs for foreign investment projects involving imports of equipment into China.  The Adjustment of Certain Preferential Import Tax Policies Circular (Notice No. 146), which was issued September 10 and effective October 1 2002, signals the end of equipment import tax exemptions for projects that do not satisfy a number of criteria outlined in recent regulations.