Notice on Lists of Imports and Exports Not Exempt from Taxation in Border Trade

Directive to local Departments of Finance and local Offices of the State Administration of Taxation of China in Inner Mongolia, Liaoning, Jilin, Heilongjiang, Guangxi, Hainan, Tibet, Xinjiang and Yunnan Provinces/Autonomous Regions, the Finance Bureau of Xinjiang Production and Construction Corps, and the Customs authorities in Hohhot, Manzhouli, Dalian, Changchun, Harbin, Nanning, Haikou, Kunming, Lhasa and Urumchi:

To implement the principle in the Reply of the State Council of China on Promoting the Economic and Trade Development in Border Areas (GUOHAN [2008] No.92) that "the Lists of Imports and Exports Not Exempt from Taxation in Border Trade should be formulated after relevant research jointly by the Ministry of Finance of China and other authorities concerned", hereby notified below are related issues to the Lists of Imports and Exports Not Exempt from Taxation in Border Trade:

Ⅰ. List of Imports Not Exempt from Taxation in Border Trade

Commodities imported through border trade shall be aimed at satisfying the daily needs of border inhabitants, and the import taxation preference for border trade is only applicable to articles for daily use (excluding natural rubber, timber, pesticide, fertilizer, crop seeds, etc). Among the articles for daily use, apart from those prohibited by State from import, commodities in the Appendix followed shall also be kept from tax-free import through the border trade as included into the List of Imports Not Exempt from Taxation in Border Trade.

Ⅱ. List of Exports Not Exempt from Taxation in Border Trade

Apart from the prevention of export-prohibited commodities by State from tax-free export through the border trade, the commodities subject to export tariff shall be included into the List of Exports Not Exempt from Taxation in Border Trade.

III. Other Related Issues

The Ministry of Finance of China will, in conjunction with other authorities concerned, adjust the List of Imports and Exports Not Exempt from Taxation in Border Trade according to the actual situation in the development of the border trade.

The Notice shall take effect as of May 1, 2010.

Please pay attention to the aforementioned.

Appendix: List of Imports Not Exempt from Taxation in Border Trade.doc