GACC Announcement No.14, 2017 on Competitive Foreign-Invested Industries in Mid & Western China

The National Development & Reform Commission (NDRC) and the Ministry of Commerce (MOFCOM) have jointly issued the “2017 Catalog of Competitive Foreign-Invested Industries in Middle & Western China” to be effective on 20 March 2017. Hereby announced are the matters with Customs implementation thereof:

1. As from 20 March 2017, regarding the foreign investments (including capital increase) covered by the 2017 Catalog aforesaid, the imported self-use equipment and relevant technologies, parts and components within total investment will be exempted from import duties, with import VAT still levied however, meanwhile excluding the equipment/products not applicable to the exemption as otherwise regulated, in accordance with State Council Notice No. 37 of 1997 and GACC Announcement No. 103 of 2008.

2. After the implementation of the “2017 Catalog of Competitive Foreign-Invested Industries in Middle & Western China”, relevant authorities-issued documents as Project Confirmation, Investment Approval or Registration Receipt will have the “Project Industrial Policy Entry” coded as “R”. For example, the 8th entry for Shanxi Province should be “Coal-bed Methane and Coal-associated Resources Comprehensive Exploitation and Utilization (R1408)”, and the project nature should still be “I: competitive foreign-invested industries/projects in the middle and west regions”; the firms involved should submit such documents when applying to the Customs for import duty relief.

3. As regards the foreign investments (including capital increase) approved or registered before 20 March 2017, where belonging to “2013 Catalog of Competitive Foreign-Invested Industries in Middle & Western China”, the imported self-use equipment and relevant technologies, parts and components within total investment may be still exempted from import duties. But the applicants must, not later than 31 March 2018, apply to the Customs for duty relief by submitting authorities-issued Project Confirmation, Investment Approval or Registration Receipt (with “Project Industrial Policy Entry” provided as per the 2013 Catalog); if the application is overdue, the Customs will not accept any more.

As regards the foreign investments (including capital increase) approved or registered before 20 March 2017 but belonging to the 2017 Catalog, the applicants may apply to the Customs for duty relief by submitting relevant Project Confirmation, Investment Approval or Registration Receipt that are issued by authorities as per the 2017 Catalog, and the Customs may accept the application.

4. As regards a foreign-invested project under construction that is not covered by the 2013 Catalog but that belongs to the 2017 Catalog, after the applicant has made duty relief application to the Customs, the imported self-use equipment and relevant technologies, parts and components may be provided with import tax preferences as per Article 1 herein, but their paid duties/tax may not be refunded.




General Administration of Customs of China (GACC)
March 17, 2017