Tariff/Tax Regulation Committee of the State Council, Circular on Exemption of Export Customs Duty for Certain Products that Enter Special Customs Supervised Zones

Issued: February 4 2008

Applicability: The policies stipulated in the Circular apply only to export processing zones with bonded processing function, bonded port zones, comprehensive bonded zones, the Zhuhai-Macao Cross Broader Industrial Zone (Zhuhai Park) and the China-Kazakhstan Huoerguosi International Border Cooperation Centre (Chinese deployment zone) (Article 4).

Main Contents: Materials for infrastructure that enter any special customs supervised zone for the construction of the zone or the factories of enterprises shall be exempted from export customs duty at the time of entry (Article 1). Raw materials used for manufacturing export products that are procured from China proper by manufacturing enterprises in special customs supervised zones (including iron wires or non-alloy steel wires, alloy steel sheets, alloy steel bars and rods, and aluminium alloy bars and rods) shall be exempted from export customs duty at the time of entry into the zone (Article 2). Non-manufacturing enterprises in special customs supervised zones (for example, bonded logistics enterprises, warehousing enterprises and trading enterprises) that procure raw materials listed in the attachment to the Circular from China proper into the zone shall not be entitled to export customs duty exemption (Article 3).