China Customs Valuation:Software Exempted; E-Content and IP Royalties Still at Risk

September 02, 2006 | BY

clpstaff &clp articles

The new Measures notably improves protection for computer software importers and supply chains by confirming that customs import duty will not be levied on most data-processing software.

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New China Customs measures confirm that the dutiable value of imported goods excludes the value of data-processing software, but includes the value of other electronic content along with copyrights, trademarks, technology and distribution rights - even if payable through royalties. The measures also detail and standardize many customs procedures, with mixed implications for taxpayers.

By Neal A. Stender and Cliff Mok,
Orrick, Herrington & Sutcliffe, Hong Kong
Zhihua (David) Tang, Coudert Brothers LLP, Beijing and Shanghai