China's Import Tax Relief for New-Style Display Devices
Notice on Import Tax Preferences for New-style Display Device Industry
CaiGuanShui  No. 16
To provincial bureaus of finance and of state taxation, Xinjiang Production & Construction Corps Bureau of Finance, Guangdong Sub-Administration Of China Customs, local first-tier customs authorities:
Upon approval by the State Council of China, we hereby announce China's import taxation policies for promoting its industry of new-style display devices:
1. From January 1, 2012 to December 31, 2015, exemption from import duties may be applied to imports of domestically unavailable raw materials and consumables for manufacturing display panels with new-style display devices (including thin-film transistor liquid crystal, plasma, organic light-emitting diode); exemption from import duties and from import value-added tax (VAT) may be both applied to imports of domestically unavailable supporting systems used for decontamination chambers and to imports of domestically unavailable parts/components for equipment repair.
Specific exemption measures hereof shall be in accordance with the Provisional Regulations On Taxation Of Imports By New-style Display Panel Manufacturers.
2. Upon approval by the Ministry Of Finance, qualified manufacturers of key raw materials and components, such as color film filters and polaroids, may enjoy the exemption from import duties on domestically unavailable raw materials and consumables by resorting to the Provisional Regulations aforesaid.
3. During China's "12th Five-Year Planning" period, the Ministry Of Finance may lead the adjustment of relevant tax-free import lists made for the new-style display device industry.
China's Provisional Regulations on Taxation of Imports by New-style Display Panel Manufacturers
1. These regulations are formulated in accordance with the State Council policies on import tax exemption for new-style display device manufacturers.
2. The new-style display devices herein include thin-film transistor liquid crystal display panels (TFT-LCD), plasma display panels (PDP), and organic light-emitting diodes (OLED) display panels.
3. Enterprises approved by the Ministry Of Finance by December 31, 2011 for the tax exemption herein may enjoy the exemption from January 31, 2012 till December 31, 2015 as per Articles 6-9 in these Regulations.
4. Where unapproved for the tax exemption treatment, manufacturers of new-style display devices may apply for the exemption in writing to the Ministry Of Finance through provincial bureaus of finance.
Their applications shall make clear description of their enterprise types, project construction, product types, production capacity, production time, import goods, import time, import value, tax-free amount and so on, and also present approval, registration or confirmation documents issued by China's authorities.
5. The applications aforesaid may be examined jointly by the Ministry Of Finance, the General Administration Of Customs, and the State Administration Of Taxation hereto.
6. The tax-exempt manufacturers may be exempted from import duties regarding their imports of specified raw materials and consumables and may be exempted from both import duties and import VAT regarding their imports of supporting systems specified for decontamination chambers.
The Ministry Of Finance, along with other authorities, may provide the list of tax-free imports concerning those raw materials, consumables and decontamination chamber supporting systems.
Import of any unlisted goods shall be subject to taxation as regulated.
7. Exemption from import duties and import VAT may be applied to the imports, within annual import value quota, of parts/components for repairing specified equipment.
Annual tax-free parts/components import value quota shall be determined as per total price and service life of the imported equipment by using relevant repair empirical formula.
The Ministry Of Finance, along with other authorities, may provide the list of applicable equipment and the formula for parts/components import value quota.
Import of any parts/components exceeding the tax-free quota shall be subject to taxation as regulated.
The importers shall submit to customs their lists of parts/components actually imported within prescribed tax-free quota.
8. The tax-exempt imported goods herein shall be only used for production by the import manufacturers and shall not be transferred or used for non-production purposes; any violation thereof may lead to revocation of the exemption treatment and to corresponding penalty.
9. The tax-exempt manufacturers shall declare to the Ministry Of Finance in January their tax exemption of previous year for the imports herein by providing import goods lists, import value, tax-free amount and policy effects, and shall copy them to the General Administration Of Customs and the State Administration Of Taxation hereto.
10. The Ministry Of Finance, along with other authorities, may timely adjust the list of tax-free import goods for the new-style display device industry.
The manufacturers and suppliers may offer advice on the adjustment to the Ministry Of Finance through provincial bureaus of finance or other authorities.
11. These Regulations shall be construed by the Ministry Of Finance along with the General Administration Of Customs and the State Administration Of Taxation hereto.
12. These Regulations shall govern from January 1, 2012 till December 31, 2015.
The Ministry Of Finance Of China
The General Administration Of Customs Of China
The State Administration Of Taxation Of China
April 9, 2012
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