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