Shanghai Pilot Free Trade Zone's Import Tax Policies Notice of CaiGuanShui [2013] No.75

To relevant Shanghai authorities:

For implementation of the Overall Plan for China (Shanghai) Pilot Free Trade Zone, we hereby announce the policies on import taxation for the Pilot FTZ:

1. As regards domestic leasing companies or their subsidiaries registered within the Pilot FTZ, the airplanes with empty weight of not less than 25 tons that they purchase from abroad and lease to domestic airlines may be covered by value-added tax (VAT) preferences as per state notices on import airplanes (CaiGuanShui [2013] No.53 and ShuShuiFa [2013] No.90).

2. Import VAT and consumption tax shall be levied on the goods that are manufactured, processed and domestically sold by the enterprises based in the Pilot FTZ; at the request of the enterprises, the domestically sold goods may be levied duties as per their importing materials or parts or as per their actual inspection status.

3. Tax exemption may be applied to machinery imported by the manufacturing-based enterprises within the Pilot FTZ, but excluding the imports by the living-based enterprises and any legally non-exempt goods.

4. Under the premise of the import taxation policies, bonded goods trading platforms may be established at specific areas within the Pilot FTZ.

Besides the import taxation polices above-mentioned, the Pilot FTZ’s Shanghai Waigaoqiao Bonded Area, Waigaoqiao Bonded Logistics Park, Yangshan Bonded Port Area, and Pudong Airport Bonded Area respectively shall also implement in-effect taxation polices for special customs-supervision areas.

This Announcement shall enter into force from the formal open date of the Pilot FTZ.



The Ministry of Finance of China

The General Administration of Customs of China

The State Administration of Taxation of China

October 15, 2013