The Announcement Of The General Administration Of Customs No.67 (2007) (On Promulgating The Amended Guiding Catalogue For Foreign Invested Industries)
After the National Development and Reform Commission and the Ministry of Commerce jointly issued the “Guiding Catalogue for Foreign Invested Industries (amended in 2007)”, the General Administration of Customs (GAC) promulgated an announcement to interpret the enforcement of the 2007 Guiding Catalogue by Customs.
From 1 December 2007, imported equipment which is:
1. Used in a foreign-invested (increase in capital) project, approved by the State Council as well as provincial, autonomous and municipal investment authorities;
2. Within the scope of the encouraged section in the 2007 Guiding Catalogue;
3. Not listed in the “Catalogue of Imported Commodities for Foreign-Invested Projects not Qualifying for Tax Exemption”;
4. Purchased within the value of the total investment; and
5. Together with the related technology, components and spare parts as agreed in the related contracts
shall qualify for exemption from import tax and import value-added tax subject to the registration and approval procedures under the “Urgent Notice of the GAC on Implementing the Notice of the State Council on Adjusting the Policies on the Tax Collection of Imported Equipment”(“Notice”). The encouraged catalogue listed in the 2007 Foreign Investment Catalogue does not apply to foreign invested projects approved by the competent departments of foreign investment after 1 December 2007. Customs will not accept applications from the aforesaid project units for tax reduction and exemption.
For encouraged foreign invested projects approved following the old Catalogue before 30 November 2007, the GAC will follow the Notice and GAC Announcement No. 35 (2007) for filing, examining and approving tax exemption applications. For approved foreign invested projects falling into the encouraged catalogue from 1 April 2002 to 30 November 2007, the project units shall follow the relevant provisions and submit the relevant materials, such as the project confirmation letter, to Customs for the application for tax reduction and exemption before the end of next year.