China Makes Adjustment on Tariff Preferential Policy on Some Import Goods

(1)Since Jan.1, 2009, according to Notice of Adjustment on Tax Policy of Import Equipment Promulgated by State Council (hereinafter referred to as Notice), imported self-use equipment by enterprise as well as technology, accessory and spare part of equipment above in accordance with contract, renew to be levied for VAT on import link but exempted from tariffs on the following conditions

A: Domestic investment projects and foreign investment projects stimulated by China

B: Loans for foreign government and International financial organization

C: Non-priced import equipment provided by foreigners in processing trade enterprise

D: Advantaged industry in Midwest of China invested by foreigners

E: Technical renovation project of foreign owned research and development center and foreign investment enterprise upon self owned capital, according to Notice of General Administration of Customs on Import Tax Policy of Further Encouraging Foreign Investment.

F: Software production enterprises and integrated circuit production enterprise

G: Urban rail transit projects

H: Other enterprise and project implemented according to the Notice


(2)Domestic investment project, foreign investment project, loans of foreign government and International financial organization, advantaged industry in Midwest of China invested by foreigners and urban rail transit project, shall be implemented according to the following provisions

A: The project investment department should submit Confirmation of Project before December 9, 2008. The imported self-use equipment under this project and technology, accessory as well as spare part imported along with the equipment in accordance with contract, which make a declaration to customs before June 30, 2009 and within the original scope of tax exemption, will continue to exempt from tariff and VAT on import link.


B: The department in charge of project investment should submit Confirmation of Project between November 10, 2008 and December 31, 2008. The imported self-use equipment under this project and technology, accessory as well as spare part imported along with the equipment in accordance with contract, which make a declaration to customs after January 1, 2009 will take VAT on import link, but will continue to exempt from tariff within the original scope of tax exemption stipulated in the regulation. The customs will make a cancellation in accordance with Confirmation of Project and Certificate of Import-Export Goods with Tax Reduction and Exemption on December 31, 2008. The import entities should apply for tax exemption to the customs again. The fee for delayed declaration resulting from submitting Certificate of Tax Reduction and Exemption, will be levied according to relevant regulation.