China's Major Tech Equipment Import Tax Rules for 2014 CaiGuanShui [2014] No.2 Notice
[2014-03-05 10:37:49]
To Local Administrations of the Undersigned Authorities herein:
In August 2009, the Ministry of Finance of China, working with other China's ministries, formulated China's import tax policies on major technical equipment. Now the relevant ministries have decided to make adjustment of the regulations and catalogs pertaining to major technical equipment import taxation.
The details are hereby announced:
1. The Regulations On the Import Taxation On Major Technical Equipment (see Annex 1) shall enter into force on March 1, 2014.
2. The Catalog Of State-Supported Major Technical Equipment & Products (2014 Revision) (see Annex 2) and the Catalog Of Key Parts & Raw Materials Importable For Major Technical Equipment & Products (2014 Revision) (see Annex 3) shall enter into force on March 1, 2014.
Qualified domestic importers shall be exempted from import duties and value-added tax (VAT) in the case that they necessarily import key parts/raw materials listed in Annex 3 for the purpose of manufacturing the equipment/products listed in Annex 2.
3. The Catalog Of Major Technical Equipment & Products Taxable On Import (2014 Revision) (see Annex 4) shall enter into force on March 1, 2014, which is hereinafter referred to as the Taxable Catalog.
As regards the projects and enterprises as below, which are approved on and after March 1, 2014 to apply import tax preferences as per State Council Notice of GuoFa [1997] No.37, they shall be subjected to import duties and tax as regulated upon the imports of the equipment listed in Annex 4 and of any accompanying technologies, components and accessories:
(1) domestic-invested and foreign-invested projects that are encouraged by the state;
(2) projects using loans from foreign governments and international financial organizations;
(3) processing-trade enterprises using non-priced import equipment offered by foreigners;
(4) foreign-invested, competitive industrial projects located in middle and western regions;
(5) projects of technical transformation made by foreign-invested enterprises or institutes as per GACC Notice of ShuShui [1999] No.791.
Where the aforesaid projects and enterprises are approved before 1 March 2014 to import the equipment listed in Annex 4 before 1 September 2014, they shall be subjected to the regulations by CaiGuanShui [2012] No.14 Notice, CaiGuanShui [2013] No.14 Notice, and CaiFaGuanShui [2012] No.83 Announcement.
Where the previously taxable equipment are confirmed tax-exempt by referring to the revised Taxable Catalog, they shall be exempted as from 1 March 2014; where their import tax are already paid, NO refund may be provided.
As from September 1, 2014, import tax shall be imposed on the equipment listed in the Taxable Catalog which may be imported in the name of the aforesaid projects and enterprises.
Where comparison is necessary, the Taxable Catalog herein shall prevail over the Catalog Of Import Goods Taxable For Domestic Investment Projects (2012 Revision) in terms of commodity description and technical specification.
4. As from March 1, 2014, the tax preference herein shall encompass the state-supported oil-gas drilling equipment, semi-submersible drilling platforms, LNG carriers, deepwater geophysical vessels, catenary multifunctional vehicles, and wet electric precipitators, as shown in Annex 2.
As from March 1, 2014, the tax exemption herein shall be revoked from DC power-supply traction equipment, automatic fire alarm and gas fire-extinguishing systems, interlocking systems, and flue gas denitrification equipment; meanwhile, the catalog of tax-free parts and materials shall be revised for 3G nuclear power units' nuclear island equipment, improved 2G nuclear power units' nuclear-island and conventional-island equipment, cleaning machine, concrete pumps, and urban rail transport equipment, as shown in Annex 3.
5. New applicants for the tax preference herein shall submit their applications between 1 March 2014 and 31 March 2014, without being overdue, in accordance with relevant requirements in Annex 1.
Provincial-level bureaus of Industry and Information Technology shall make preliminary examination of the aforesaid applications and shall report their results to the Ministry of Industry and Information Technology before 15 April 2014 without being overdue.
As from March 1, 2014, the new applicants preliminarily verified as compliant may request the customs to first release their importing parts/raw materials on the strength of tax guarantee and certificate of compliance.
The Ministry of Industry and Information Technology, the National Development & Reform Commission, and the National Energy Administration shall respectively deliver their verification results concerned to the Ministry of Finance before 15 May 2014 without being overdue.
6. The applicants for enjoying the tax preference herein for the year 2015 and beyond shall submit relevant application within November 1-30 of the previous year as per Annex 1 regulations.
7. The applicants tax-exempted in 2013, where applying before 1 March 2014 for tax-free imports of key parts and raw materials, shall resort to the regulations under CaiGuanShui Notices of [2012] No.14 and [2013] No.14 respectively; but as from 1 March 2014, they shall follow the regulations/catalogs under this Notice.
8. The applicants enjoying the tax preference herein in 2013 shall deliver their preference utilization reports within 1-31 March 2014 to both the Ministry of Finance and the General Administration of Customs as per requirements in Annex 1; their failure to deliver as required shall be deemed as waiver regarding the tax preference.
9. As from March 1, 2014, the Notices below shall be repealed:
(1) CaiGuanShui [2009] No. 55 Notice
(2) CaiGuanShui [2012] No. 14 Notice
(3) CaiGuanShui [2013] No. 14 Notice
Annex 1. Regulations On the Import Taxation On Major Technical Equipment (omitted)
Annex 2. Catalog Of State-Supported Major Technical Equipment & Products (2014 Revision) (omitted)
Annex 3. Catalog Of Key Parts & Raw Materials Importable For Major Technical Equipment & Products (2014 Revision) (omitted)
Annex 4. Catalog Of Major Technical Equipment & Products Taxable On Import (2014 Revision) (omitted)
The Ministry of Finance of China
The National Development & Reform Commission of China
The Ministry of Industry & Information Technology of China
The General Administration of Customs of China
The State Administration of Taxation of China
The National Energy Administration of China
February 18, 2014
In August 2009, the Ministry of Finance of China, working with other China's ministries, formulated China's import tax policies on major technical equipment. Now the relevant ministries have decided to make adjustment of the regulations and catalogs pertaining to major technical equipment import taxation.
The details are hereby announced:
1. The Regulations On the Import Taxation On Major Technical Equipment (see Annex 1) shall enter into force on March 1, 2014.
2. The Catalog Of State-Supported Major Technical Equipment & Products (2014 Revision) (see Annex 2) and the Catalog Of Key Parts & Raw Materials Importable For Major Technical Equipment & Products (2014 Revision) (see Annex 3) shall enter into force on March 1, 2014.
Qualified domestic importers shall be exempted from import duties and value-added tax (VAT) in the case that they necessarily import key parts/raw materials listed in Annex 3 for the purpose of manufacturing the equipment/products listed in Annex 2.
3. The Catalog Of Major Technical Equipment & Products Taxable On Import (2014 Revision) (see Annex 4) shall enter into force on March 1, 2014, which is hereinafter referred to as the Taxable Catalog.
As regards the projects and enterprises as below, which are approved on and after March 1, 2014 to apply import tax preferences as per State Council Notice of GuoFa [1997] No.37, they shall be subjected to import duties and tax as regulated upon the imports of the equipment listed in Annex 4 and of any accompanying technologies, components and accessories:
(1) domestic-invested and foreign-invested projects that are encouraged by the state;
(2) projects using loans from foreign governments and international financial organizations;
(3) processing-trade enterprises using non-priced import equipment offered by foreigners;
(4) foreign-invested, competitive industrial projects located in middle and western regions;
(5) projects of technical transformation made by foreign-invested enterprises or institutes as per GACC Notice of ShuShui [1999] No.791.
Where the aforesaid projects and enterprises are approved before 1 March 2014 to import the equipment listed in Annex 4 before 1 September 2014, they shall be subjected to the regulations by CaiGuanShui [2012] No.14 Notice, CaiGuanShui [2013] No.14 Notice, and CaiFaGuanShui [2012] No.83 Announcement.
Where the previously taxable equipment are confirmed tax-exempt by referring to the revised Taxable Catalog, they shall be exempted as from 1 March 2014; where their import tax are already paid, NO refund may be provided.
As from September 1, 2014, import tax shall be imposed on the equipment listed in the Taxable Catalog which may be imported in the name of the aforesaid projects and enterprises.
Where comparison is necessary, the Taxable Catalog herein shall prevail over the Catalog Of Import Goods Taxable For Domestic Investment Projects (2012 Revision) in terms of commodity description and technical specification.
4. As from March 1, 2014, the tax preference herein shall encompass the state-supported oil-gas drilling equipment, semi-submersible drilling platforms, LNG carriers, deepwater geophysical vessels, catenary multifunctional vehicles, and wet electric precipitators, as shown in Annex 2.
As from March 1, 2014, the tax exemption herein shall be revoked from DC power-supply traction equipment, automatic fire alarm and gas fire-extinguishing systems, interlocking systems, and flue gas denitrification equipment; meanwhile, the catalog of tax-free parts and materials shall be revised for 3G nuclear power units' nuclear island equipment, improved 2G nuclear power units' nuclear-island and conventional-island equipment, cleaning machine, concrete pumps, and urban rail transport equipment, as shown in Annex 3.
5. New applicants for the tax preference herein shall submit their applications between 1 March 2014 and 31 March 2014, without being overdue, in accordance with relevant requirements in Annex 1.
Provincial-level bureaus of Industry and Information Technology shall make preliminary examination of the aforesaid applications and shall report their results to the Ministry of Industry and Information Technology before 15 April 2014 without being overdue.
As from March 1, 2014, the new applicants preliminarily verified as compliant may request the customs to first release their importing parts/raw materials on the strength of tax guarantee and certificate of compliance.
The Ministry of Industry and Information Technology, the National Development & Reform Commission, and the National Energy Administration shall respectively deliver their verification results concerned to the Ministry of Finance before 15 May 2014 without being overdue.
6. The applicants for enjoying the tax preference herein for the year 2015 and beyond shall submit relevant application within November 1-30 of the previous year as per Annex 1 regulations.
7. The applicants tax-exempted in 2013, where applying before 1 March 2014 for tax-free imports of key parts and raw materials, shall resort to the regulations under CaiGuanShui Notices of [2012] No.14 and [2013] No.14 respectively; but as from 1 March 2014, they shall follow the regulations/catalogs under this Notice.
8. The applicants enjoying the tax preference herein in 2013 shall deliver their preference utilization reports within 1-31 March 2014 to both the Ministry of Finance and the General Administration of Customs as per requirements in Annex 1; their failure to deliver as required shall be deemed as waiver regarding the tax preference.
9. As from March 1, 2014, the Notices below shall be repealed:
(1) CaiGuanShui [2009] No. 55 Notice
(2) CaiGuanShui [2012] No. 14 Notice
(3) CaiGuanShui [2013] No. 14 Notice
Annex 1. Regulations On the Import Taxation On Major Technical Equipment (omitted)
Annex 2. Catalog Of State-Supported Major Technical Equipment & Products (2014 Revision) (omitted)
Annex 3. Catalog Of Key Parts & Raw Materials Importable For Major Technical Equipment & Products (2014 Revision) (omitted)
Annex 4. Catalog Of Major Technical Equipment & Products Taxable On Import (2014 Revision) (omitted)
The Ministry of Finance of China
The National Development & Reform Commission of China
The Ministry of Industry & Information Technology of China
The General Administration of Customs of China
The State Administration of Taxation of China
The National Energy Administration of China
February 18, 2014
Source: ETCN
Related Articles:
- GACC Announcement No.24, 2015 (on Tax E-Pay in Paperless Customs Clearance)
(2015-06-05) - China Tax Admin Announcement No.13, 2014 on Foreign-Trade Serving Firms' Export Refund (Exemption)
(2014-03-18) - China Sets Tax on Low-grade Coal Imports; Impact on Indonesia Supplies Unclear
(2013-09-03) - China Medical Equipment Export Maintained Rapid Growth in Jan-May 2013
(2013-08-09) - LCCI Seeks Cut in Tax on Hybrid Cars' Import
(2013-05-23) - GACC Announcement No.18, 2013 on Tax Relief for Encouraged Investment Projects
(2013-04-11) - India Up Duty & Tax on High-end Consumer Goods
(2013-03-11) - EU to Tax More Imports of Chinese Steel Pipes
(2013-02-21) - Equipment Non-exempt from China Import Taxes for Domestic Investment Projects
(2013-01-04) - Chinese Lighter Makers Evade EU Tax Via Vietnam
(2012-07-23)
Most Read
- GACC Announcement No.10, 2017 on China-South Korea Goods Origin Info Exchange System
(2017-02-09) - Explanations on Compilation & Release of the "China Export Leading Indicator"
(2014-07-10) - GACC Announcement No.26, 2016 on (Cross-Border E-Commerce Retail Import/Export Control)
(2016-05-10) - GACC Announcement No.46, 2015 (on Uniform Social Credit Code Implementation)
(2015-10-10) - GACC Announcement No. 32, 2016 on (Uniform Social Credit Code for Legal Persons & Organizations)
(2016-05-13) - AQSIQ-CNCA Announcement No. 117, 2012 on Compulsory Certification-Free Products
(2012-08-16) - China Tariffs Implementation Plan for 2013
(2012-12-27) - China Bans Export of Protected Fossils
(2010-11-25) - Announcement of the General Administration of Customs of P. R. China, No. 43, 2010
(2010-07-06) - AQSIQ Announcement No.54, 2014 on China-Switzerland FTA Certificate of Origin
(2014-05-16)
