Ministry of Finance, General Administration of Customs and State Administration of Taxation, Tax Collection Policy Issues Relevant to Tax Levy by Customs as an Agent on Imported Goods for the Import Section Provisions

Issued: March 16 2004
Effective: January 1 2004

Main contents: If a taxpayer provides a deposit or other guarantee equivalent to the amount of tax payable to customs at the arrival of the following imported goods in China, it does not need to pay value-added tax and consumption tax for the import section for the time being but should re-export the goods within six months (this may be extended upon application) of their arrival:
1) goods to be displayed or used at exhibitions, trade fairs, conferences and similar activities;
2) items used in performances and contests for cultural or sports exchange activities;
3) instruments, equipment and items used in news reporting or shooting films or television programmes;
4) instruments, equipment and items used for scientific research, education and medical activities;
5) means of transportation and special vehicles used in the activities as stated in Items (1) to (4);
6) samples;
7) instruments and tools used for installation, tuning and testing of equipment;
8) containers for holding goods; and
9) other goods used for non-commercial purposes.

Value-added tax and consumption tax for the import section are also not levied or collected on goods compensated or replaced free of charge by the sender or carrier or insurance company; advertising and sample goods with no commercial value, materials donated by foreign governments and international organizations; and fuels, materials, food and beverages required in the course of loading and uploading of means of transportation that enter the territory of China.