General Office of the Ministry of Finance of
the People's Republic of China,
General Office of the General Administration of
Customs of the People's Republic of China,
General Office of the State Administration of Taxation

July 23, 2009

To general offices of the people's governments of all provinces, autonomous regions, municipalities and cities specifically designated in the State plan, general offices of all ministries and commissions and directly affiliated institutions of the State Council:

In order to support and aid quake-hit areas to launch self-help production and reconstruct their homeland, enterprises and units in quake-hit areas and enterprises and units that are supporting the reconstruction of quake-hit areas may enjoy preferential import tariffs within three years starting from July 1, 2008, when importing staple goods and equipment that cannot be supplied domestically for the purpose of after-quake reconstruction, according to stipulations of the “Proposals of the State Council on Policies and Measures on Supporting After-quake Reconstruction of Wenchuan” (State Council [2008] No. 21) and the “Circular of the Ministry of Finance on Tax Exemption for Import of Earthquake Relief and Rescue Goods” (MOF Tariff [2008] No. 70). To better implement the above-mentioned policies, a circular on related issues is published as follows:

I. According to the “Circular of the Ministry of Civil Affairs, the National Development and Reform Commission, the Ministry of Finance, the Ministry of Land and Resources and China Earthquake Administration on Printing and Issue of Results of Appraisal of Quake-hit Scope” (MCA [2008] No. 105), the “quake-hit areas” as claimed by import taxation policy cover 10 most seriously quake-savaged counties (cities), 41 seriously quake-hit counties (cities, districts) and 186 ordinary quake-hit counties (cities, districts).

II. Quake-hit areas or the people's governments of provinces, autonomous regions, municipalities and cities specifically designated in the State plan that offer partnership support to reconstruction of quake-hit areas or competent departments of the State Council will be in charge of collecting the tax reduction and exemption applications for import of goods for the purpose of after-quake reconstruction that cannot be supplied domestically submitted by enterprises and units and will then report them to MOF, and MOF will, together with competent departments examine these applications and give its proposal, and will further submit them to the State Council for approval. People's governments of all provinces, autonomous regions, municipalities and cities specifically designated in the State plan or competent departments of the State Council shall in principle collectively report these applications twice in the first and third quarters of every year.

III. Specific scope for the after-quake reconstruction projects that apply for tax-free import

1. According to stipulations of the “Circular of the State Council on Printing and Issuing the Overall Plan for After-quake Reconstruction of Wenchuan” (State Council [2008] No. 31), all after-quake reconstruction projects in the 51 counties (cities, districts) of the three provinces of Sichuan, Gansu and Shaanxi that have been listed in the overall plan can apply and enjoy import tariff exemption policy. These projects cover the nine parts of urban and rural housing, township construction, countryside construction, public service, infrastructure facility, industrial reconstruction, disaster prevention and reduction, ecological environment and spiritual homeland as listed in the plan. The import tariff exemption policy will mainly support key infrastructure facility projects, key enterprises that need the State help, pillar industries and such public facility projects as water and electricity supply, and schools and hospitals. Competent departments at or above provincial level will produce certificates showing that these projects have been listed in the plan.

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