China to Exempt Tariff on Part of Imported Aviation Materials during the Twelfth Five-Year Plan

On December 15, 2010, an announcement from the Ministry of Finance of the People's Republic of China said that the import tariff as well as the import VAT on imported aviation materials (including parts sent overseas) which are used for branch planes and engine repair among China's
Airlines during the Twelfth Five-Year Plans will be exempted.

The aviation materials mentioned above refer to the imported materials for airplane repair and engine, including the engine, Auxiliary Power Unit (APU), undercarriage, other kinds of planes, accessories of engine (including the overseas sent service parts of those mentioned above, excluding the whole set of plane repaired or changed overseas) and consumption materials for repair.

The aviation materials are limited to the onboard equipment of aircraft and its parts, excluding the equipment for the use of ground service system and its parts.