China's Notice on 2011's VAT Exemption for Imp. Seeds/Seed Provenance

Notice of China's Ministry of Finance, General Administration of Customs, and State Administration of Taxation on Exemption from Value-Added Taxes for Importing Seeds/Sprouts, Breeding Stock/Poultry, Fingerlings/Fries, and Breeding Wildlife Seeds/Seed Provenance and on Import Plans for 2011

To:
Local provincial departments of finance,
Local state administrations of taxation,
Bureau of Finance of Xinjiang Production and Construction Corps,
Guangdong Sub-Administration of China Customs, and
Local customs authorities directly under the General Administration of Customs

Approved by the State Council of China, the exemption from import value-added taxes (VAT) may be applied during the period of China's "Twelfth Five-Year Planning" to any importing seeds/sprouts, breeding stock/poultry, fingerlings/fries, and breeding wildlife seeds/seed provenance (hereinafter referred to as "seeds/seed provenance").

Relevant matters are hereby announced below:

1. Goods under the import VAT exemption may include:

(1) Importing seeds/sprouts, breeding stock/poultry, and fingerlings/fries relevant to agricultural and forestry production; and

Wildlife seeds/seed provenance imported for scientific research, breeding and reproduction by qualified animal/plant research institutes, zoological gardens, animal/plant protecting organizations, and farms or plantations.

(2) Police dogs and their semens or embryos used for breeding, imported by the army, armed police, public security administrations, and national security authorities (including anti-smuggling police).

2. Examination and approval have been completed for both the Plan for 2011 of the Ministry of Agriculture on Imports with Value-Added Tax Exempted of Seeds/Sprouts, Breeding Stock/Poultry, and Fingerlings/Fries (Annex 1) and the Plans for 2011 of the State Forestry Administration on Imports with Value-Added Tax Exempted of Seeds/Sprouts and Breeding Wildlife Seeds/Seed Provenance (Annex 2 & 3).

Local customs authorities may, based upon printed approval forms signed and issued by the Ministry of Agriculture or the State Forestry Administration of China, conduct inspection and release of VAT-free imports of such seeds/seed provenance, and conduct cash-deposit refunding and import cancellation for the imports upon cash deposits after their inspection and release.

Otherwise specific regulations shall prevail with respect to the imports in 2011 by Yunnan Province in variety and quantity of flower/plant seeds, sprouts, and seedballs.

3. As from 2012, prior to the issuance of annual plans on such VAT-free imports (except police dogs and their semens and embryos for breeding), the Ministry of Agriculture and the State Forestry Administration may, with respect to any listed varieties in a previous-year plan on such imports, issue relevant approval forms in advance within 30% of the VAT-free import quota of the previous year.

Importers thereof may apply to customs authorities for the VAT-free imports based upon the approval forms issued in advance.

4. Relevant import VAT shall be levied upon any importing seeds/seed provenance NOT approved or NOT listed in such annual plans.

5. Any VAT-free imported seeds/seed provenance shall NOT be put to arbitrary transfer or sale WITHOUT being reasonably planted, cultivated, grown experimentally, bred or fed.

Any incompliant importer thereof shall be subject to penalty and suspension of its VAT exemption for ONE (1) year; and any criminally prosecuted importer shall be subject to suspension of its VAT exemption for THREE (3) years.

Annexes:

1. Plan for 2011 of the Ministry of Agriculture on Imports with Value-Added Tax Exempted of Seeds/Sprouts, Breeding Stock/Poultry, and Fingerlings/Fries (Omitted)

2. Plan for 2011 of the State Forestry Administration on Imports with Value-Added Tax Exempted of Seeds/Sprouts (Omitted)

3. Plan for 2011 of the State Forestry Administration on Imports with Value-Added Tax Exempted of Breeding Wildlife Seeds/Seed Provenance (Omitted)


June 24, 2011