Government regulates processing trade policy .....

　Government regulates processing trade policy Yangzhou enterprises regulates structures

　　  On July 23, Ministry of Commerce of P.R.C and General Administration of Customs of P.R.C jointly formulate of new batch of restriction catalog of processing trade. It is introduced by related charger of Yangzhou Foreign Trade and Economic Cooperation Bureau that the catalog is mainly of labor intensive industry, includes plastic material and products, textile yarn, fabric, furniture, metal rough-wrought products, etc, 1853 10-digit tariff codes, 15% of all goods codes of customs. 

　　 It is understood that processing trade plays an important role in the foreign trade export of our city. In the first half year, the accumulated export is USD 465 million, 33.5% of the total export amount, increasing 30.2% over the same period last year. “Government regulates processing trade policy, which promotes its upgrade, but influences greatly to the related industries and enterprises in our city in short term”, General Manager Qian Junmin of Yangzhou Zhongyu Import & Export Co., Ltd said that. And some manufacturers, who cooperate with their company, has felt this “shock wave” and actively regulate product structure. 

　　 Some charger of Yangzhou Foreign Trade and Economic Cooperation Bureau told the journalist that because the regulation is a little big and refers to many goods, now it is under calculation that how many kinds of exported goods will be influenced. Moreover, to enterprises haven’t gotten foreign trade right before July 23 in eastern area, the bureau will not transact the processing trade business of restricted goods.  

　　Circular of the State Administration of Taxation concerning Refund of Taxes Levied on Purchase of Domestic Equipment by Construction Enterprises Entrusted by Foreign-funded Enterprises through Contracting for Labor and Materials

 

Guo Shui Han [2007] No.637

 　　All the state taxation bureaus of all provinces, autonomous regions, municipalities directly under the Central Government and cities specifically designated in the state plan:

 We have received letters from some areas recently requesting the State Administration of Taxation to clear the examination and approval procedures for refund of taxes levied on purchase of domestic equipment by construction enterprises entrusted by foreign-funded enterprises through contracting for labor and materials. Upon study, a circular on relevant issues is hereby rendered as follows:

 　　1. For the engineering projects which are contracted out by foreign-funded enterprises through contracting for labor and materials, if such construction enterprises execute with their contractors an agreement for purchase of domestic equipment, entrusted to purchase domestic equipment, and get VAT invoices (the purchasers on VAT invoices should be the Construction Enterprises) issued therefore, the invoices shall be delivered to the foreign-funded enterprises for application for tax refund under relevant rules.

　　 2. Procedures for Application for Tax Refund

　　 (1) When applying for tax refund, the foreign-funded enterprises should fill out Application Form for Purchase of Domestic Equipment by Foreign-funded Projects, together submit the credence stipulated in Circular of the State Administration of Taxation and National Development and Reform Commission on Printing and Issuing the Trial Measures for the Administration of Refund of Taxes Levied on Purchase of Domestic Equipment by Foreign-funded Projects (Guo Shui Fa [2006] No.111), VAT invoices for the purchase of domestic equipment by the construction enterprises on behalf of the engineering projects, the General Contract by the foreign-funded enterprises and the construction enterprises, the list of domestic equipment purchased on entrustment, the list of equipment delivered by the construction enterprises to the foreign-funded enterprises, the Opinion Letter on Checking and Accepting the Equipment issued by relevant departments of the foreign-funded enterprises, and payment voucher, etc. to the competent tax authorities for tax refund.

　　 (2) After accepting the application for tax refund, for those equipments under the General Contract between the foreign-funded enterprises and the construction enterprises, whose VAT invoices read the construction enterprises as the purchasers, the competent tax authorities should send letters to the tax competent authorities of the supply enterprises to make an investigation. If the replies affirm the authenticity of the invoices and that the tax declaration of the equipment in the invoices has been made, the tax competent authorities shall handle the application. If the replies cannot affirm the authenticity of the invoices, or if the replies cannot affirm whether the tax declaration of the equipment in the invoices has been made, or if the replies can not be received, the tax competent authorities shall not transact the application.

 　　3. Other matters not covered in this Circular shall be governed by the document "Guo Shui Han [2006] No.111".

 

State Administration of Taxation

June 12, 2007