Goods under duty reduction or exemption is a tariff preference measure that the state gives to the qualified enterprises and units. When enjoying the right of duty reduction or exemption, enterprises and units shall value this right and assume the responsibility to apply for, to use, to take care of and to deal with the goods under duty reduction or exemption in accordance with laws and regulations. In order to make the enterprises and units understand the requirements for the application for and supervision over the goods under duty reduction or exemption, to enhance the internal administration and to promote the sound relationship and win-win cooperation between Customs and enterprises and units, here Customs will notify the relevant affairs seriously as follows:

I. Application Procedures
ⅰ.　Application process: prerecord of the project of the applying units—examination and approval of Customs for the project—prerecord of duty reduction or exemption for the applying units—examination and approval of Customs for duty reduction or exemption—production of the Duty Imposition/Exemption Certificate for Import/Export Goods by Customs—declaration for importation

ⅱ. Time limit for application: project units shall declare to Customs with the hold of complete and valid papers and documents for examination and approval formalities for duty reduction or exemption granted for import or export goods before importing the goods.

ⅲ. Time limit for Customs acceptation: Customs shall complete the procedures for application to put on record and to examine and approve the duty reduction or exemption within 10 working days after the second day when accepting the application under the condition that the electronic data is doubtless as well as all the papers and documents are complete and valid. When, owning to such reasons as clearing the policies, limits of authority for examination and approval and technical index that shall ask the Customs General Administration for instructions, or because of other special conditions that the Customs is unable to complete the registration procedures during the specific time or to issue the Duty Imposition/Exemption Certificate for Import/Export Goods, Customs may use discretion to prolong the period after gaining the approval from the competent Customs Director or the person that is authorized.

II. Administrative Regulations
ⅰ. Application for duty reduction or exemption granted for goods must be based upon the purpose for private use. Enterprises and units shall not apply for and go through the formalities for duty reduction or exemption granted for goods for others in the name of themselves.

ⅱ. Goods granted with duty reduction or exemption belong to goods under Customs supervision and control. Throughout the period of Customs supervision and control, no unit (enterprise) or individual may sell, keep transfer, transpose, refit, rent, mortgage, impawn, shift to other use, or change the use area, the user or the use way of goods under specific duty reduction or exemption without Customs authorization. Units (enterprises) or individuals shall gain the Customs approval and go through the relevant formalities to deal with such affairs as listed above or other affairs.

ⅲ. Customs shall not accept the application for duty reduction or exemption if the project units (enterprises) do not apply to Customs for going through formalities for duty reduction or exemption before importing or exporting goods without any special reason.