(28 September 2009)
 
Cai Guan Shui [2009] No. 55

Ministry of Finance, National Development and Reform Commission, Ministry of Industry and Information Technology, General Administration of Customs, State Administration of Taxation, National Energy Administration

Aug 20, 2009

To bureaus of finance, development and reform commissions, and departments of industry and information technology of various provinces, autonomous regions, municipalities directly under the jurisdiction of the central government and cities specifically designated in the state plan, the Bureau of Finance and the Development and Reform Commission of the Xinjiang Production and Construction Corp., the Guangdong Branch of the General Administration of Customs (GAC), and various customs directly under GAC, and financial supervision commissioners’ offices of the Ministry of Finance in various provinces, autonomous regions, municipalities directly under the jurisdiction of the central government and cities specifically designated in the state plan,

Hereinafter is a notice made in order to raise the core competitiveness and independent innovation capacity of Chinese enterprises, promote adjustment and upgrading of industrial structure, promote sustainable development of the national economy, and implement the State Council’s plan on boosting equipment manufacturing and the decision on speeding up development of equipment manufacturing industry and adjustment of preferential import taxation policy.

1.  Starting from July 1, 2009, domestic enterprises which really need to import key parts and raw materials for production of major technical equipment and products under the state supports are exempted of import duties and import linkage VAT. At the same time, the import tax exemption policy on complete machine and complete set of equipment will be revoked. Those which cannot be satisfied with domestically made equipment but still need to be imported will continue enjoying the import preferential treatment in a certain period of time as a transit measure and in a form of eventual reduction of tax rate and narrowing tax exemption scope after going through strict examination and approval.

2. Starting from July 1, 2009, the refund policy on customs duties and import linkage VAT for import of certain key parts and raw materials for development and manufacturing of key technical equipment by domestic enterprises will not prevail any more.

3. Enterprises which imported key parts and raw materials for major technical equipment from January 1, 2008 to June 30, 2009 and applied for continuation of enjoying the refund import tax policy shall submit application documents not late than September 30 in accordance with the Circular of the Ministry of Finance, the National Development and Reform Commission and the State Administration of Taxation on Import Taxation Policy for Implementation of the Proposals of the State Council on Speeding up Development of Equipment Manufacturing Industry (Cai Guan Shui [2007] No. 11) and other policies on import taxation, and applications will not be accepted upon overdue. Provincial departments of finance shall send the application documents collection to the Ministry of Finance before October 30. Eligible enterprises shall apply for tax rebates in customs where the goods are imported in six months starting from the date of receiving the tax rebate confirmation document in accordance with the procedures required by Cai Guan Shui [2007] No.11, and they will not be accepted upon overdue.

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