Ministry of Finance, National Development and Reform Commission, Ministry of Industry and Information Technology, General Administration of Customs, State Administration of Taxation and National Energy Bureau, Tentative Provisions on Import Tax Policy for Important Technological Equipment

财政部、国家发展和改革委员会、工业和信息化部、海关总署、国家税务总局、国家能源局重大技术装备进口税收政策暂行规定

October 10, 2009 | BY

clpstaff &clp articles &

Import tax policy for imported equipment for FIEs no longer valid.

Clp Reference: 3220/09.08.20 Promulgated: 2009-08-20 Effective: 2009-07-01

Issued: August 20 2009

Effective: July 1 2009

Main contents: Where a domestic enterprise truly needs to import the commodities listed in the List of Key Parts and Components, and Raw Materials Imported for Important Technological Equipment and Products to produce the equipment or products in the Catalogue of Important Technological Equipment and Products Supported by the State for Development, such imports shall be exempted from customs duty and import value-added tax (Article 2).

The Ministry of Finance shall, in conjunction with relevant departments, formulate the Catalogue of Important Technological Equipment and Products Whose Import is not Exempted from Tax (Appendix 3) for important technological equipment and products that can already be produced domestically. Levy of import taxes shall be resumed for the following projects that are entitled to preferential import tax policy in accordance with or with reference to the State Council, Circular on the Adjustment of Tax Policy for Imported Equipment (Guo Fa [1997] No.37), equipment specified in Appendix 3 that is imported by enterprises for their own use, as well as the technologies and auxiliary and spare parts that are imported along with the aforementioned equipment according to the contract:

(1) domestic investment projects and foreign-investment projects that are encouraged by the state for development;

(2) projects funded by loans of foreign governments or international financial organisations;

(3) processing trade enterprises whose imported equipment is provided by foreign investors without valuation;

(4) foreign investment projects in the dominant industries of the Central and Western Regions; and

(5) technology transformation projects that use the own funds of foreign-invested enterprises or research centres established by foreign investors as specified in the General Administration of Customs, Circular on Import Tax Policies Relevant to Further Encouraging Foreign Investment (Article 3).

Related legislation: State Council, Circular on the Adjustment of Tax Policy for Imported Equipment, Dec 29 1997, CLP 1998, No.4 p.46; Circular on Import Tax Policies Relevant to Further Encouraging Foreign Investment, Nov 22 1999, CLP 2000 No.2 p.10; and PRC Customs, Measures for the Administration of the Reduction and Exemption of Taxes for Imports and Exports

clp reference:3220/09.08.20promulgated:2009-08-20effective:2009-07-01

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