China Makes Adjustment on Tariff Preferential Policy on Some Import Goods

(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.

(3)In following circumstances, projects verified and audited on and before 31st Dec. 1997 may implement tariff preferential policy and be effective with the Certification of tax exemption issued by Customs on and before 31st Dec.2008 in accordance with the Notice.

They are domestic investment projects (including technical renovation project and infrastructure project),foreign investment projects, projects aided by foreign government loans and international financial organization loans, private capital projects and authorized software producing enterprises, self-use equipments and related technology and spare parts listed in contract imported by integrated circuit enterprise