China Import Tax Policies for Hengqin Development

To Guangdong Provincial Department of Finance, Guangdong Sub-Administration of China Customs, Gongbei Customs, and Guangdong Administration of State Taxation:

Hereby announced are the policies for import taxation with respect to Hengqin development:

Article 1 Import Taxation Policies

Unless otherwise regulated, the regulations below shall prevail for Hengqin.

1. Registration and tax exemption shall be applied to the undermentioned production-related goods entering Hengqin from abroad:

(1) Machinery, equipment used for infrastructure construction projects within Hengqin and building materials used for workshops and warehouses within Hengqin;
(2) Equipment, moulds and their parts/accessories needed by producing enterprises within Hengqin;
(3) Machinery, equipment imported by intra-Hengqin enterprises engaging in research, development, test, repair, logistics, and service outsourcing.

The taxable goods at the "first line" are listed under Article 2 herein.

2. Registration and bonded treatment shall be applied to the undermentioned production-related goods entering Hengqin from abroad:

(1) Raw materials, components, package materials and consumptive materials needed by intra-Hengqin enterprises for export processing;
(2) Goods imported by intra-Hengqin logistic firms for the logistic purpose.

The non-bondable goods at the "first line" are listed under Article 3 herein.

3. With respect to imports to the inland from Hengqin, the import declaration shall resort to relevant regulations, and the import taxation shall be subject to their actual progress in inspection, but excluding the consumption goods that are duty-paid at the "first line".

4. Where intra-Hengqin enterprises sell the tax-free and bonded goods to individual persons, the unpaid import tax thereof shall be paid as per relevant regulations.

5. Import value-added tax and consumption tax shall be levied on the goods that are made, processed and sold via the "second line" to the inland by intra-Hengqin enterprises.

Upon request by the enterprises, the inland-sold goods may be subjected to trial taxation in the light of their imported materials or actual inspection progress.

Article 2 List of Goods Taxable at the "First Line"

Such goods include:

1. The goods not exempt from tax as prescribed by law/regulations;

2. The goods banned by the state from import;

3. The goods imported for commercial estate development projects, including elevators, air conditioners, cement, steels (3442,-32.00,-0.92%), marbles, lanterns, and other construction and decoration materials.

4. Consumption goods including: (click the link for details)

5. Other commodities in 20 taxable goods out of the consumption goods listed above;

6. Other goods without relation to production.

Article 3 List of Goods Non-Bondable at the "First Line"

Such goods include:

1. The goods not bondable as prescribed by law/regulations;

2. The goods banned by the state from import;

3. The goods imported for commercial estate development projects, including elevators, air conditioners, cement, steels, marbles, lanterns, and other construction and decoration materials.

4. Consumption goods self-used by intra-Hengqin persons, firms and administrations, the same as the items 4 and 5 under Article 2 herein;

5. The goods banned from processing-trade import and export;

6. Other goods without relation to production.

Article 4 Other Matters

During the course of the policy implementation, the Ministry of Finance hereto may manage to timely adjust the aforesaid lists of goods taxable and/or non-bondable at the "first line".

This Notice shall take effect upon the acceptance and adoption of Hengqin inspection-quarantine facilities.


The Ministry of Finance of China
The General Administration of Customs of China
The State Administration of Taxation of China

May 20, 2013