Ministry of Finance, National Development and Reform Commission, Ministry of Commerce, General Administration of Customs and State Administration of Taxation, Circular Concerning the Adjustment of Tax Rebate Rates on Certain Exports and Supplementing the Prohibited Category of the List of Goods Subject to Processing Trade

Issued: September 14 2006

Main contents: The Circular abolishes the export tax rebates on all non-metallic ores under Part 25 of the Customs Import/Export Tariffs apart from salt and cement, as well as on coal, natural gas, non-ferrous metals and waste material. The export tax rebate rate on steel is lowered from 11% to 8%. Those on certain non-ferrous materials are lowered from 13% to 5%, 8% and 11%. Also, tax rebate rates on the export of textiles, furniture and plastics are lowered from 13% to 11%. On the other hand, the export tax rebate rates on major technological equipment, certain IT products and biopharmaceutical products, and certain high-tech products the export of which is encouraged by state industrial policies are raised from 13% to 17%. Goods on which export tax rebates have already been abolished prior to the issue of, or by this Circular shall be included in the Prohibited Category of the List of Goods Subject to Processing Trade. Customs import tariffs and import-stage tax shall be levied on the import of goods included in the Prohibited Category of the List of Goods Subject to Processing Trade. The aforementioned stipulation shall also apply to special customs supervision zones such as export processing zones and bonded zones.