Five sectors: Pilot import tax policies in conditional free trade pilot zones and free trade ports

Department of Taxation, General Administration of Customs, Ministry of Ecology and Environment, Ministry of Finance

Announcement on Pilot Import tax policy Measures in conditional Free trade Pilot zones and free trade ports

Announcement No. 75 of 2023, General Administration of Taxation, General Administration of Customs, Ministry of Ecology and Environment, Ministry of Finance

In order to implement the relevant requirements of the "Several Measures for Promoting institutional Opening by Connecting Conditional Pilot Free Trade Zones and Free trade Ports with international high Standards" (Guofa [2023] No. 9) issued by The State Council, the relevant policies and measures are hereby announced as follows:

1. Temporary outbound repairs

 

(1) The following aircraft and ships (including relevant parts and components) operated by enterprises registered in the Hainan Free Trade Port with independent legal personality shall be exempted from customs duties and levied on import value-added tax and consumption tax according to regulations, regardless of whether they are value-added or not. Specifically:

1. Aircraft (including related parts and components) operated by aviation enterprises with Hainan Free Trade Port as the main operating base.

2. Ships operated by the shipping company registered at the port of Hainan Free Trade Port (including relevant parts and components).

(2) The list of enterprises eligible for the policies and measures shall be determined by the competent departments of transportation, market supervision and maritime affairs of Hainan Province in conjunction with the Department of Finance of Hainan Province, the Department of Ecology and Environment of Hainan Province, Haikou Customs and Hainan Taxation Bureau of the State Administration of Taxation, and dynamically adjusted, and notified to Haikou Customs by letter.

(3) tariff-free aircraft and ships (including relevant parts and components) that enter Hainan Free Trade Port after temporary exit repair are only allowed to operate for their own use by enterprises that meet the conditions of policies and measures, and are subject to customs supervision; It shall not be transferred or used for other purposes without customs approval and payment of import duties. The transfer of the above-mentioned aircraft and ships (including relevant parts and components) shall be subject to the imposition of domestic value-added tax and consumption tax according to regulations.

Enterprises that meet the conditions for enjoying policies and measures shall establish an information management system for goods for temporary outbound repair that meets the requirements of customs supervision, and manage and use the goods for temporary outbound repair and return to China in accordance with the requirements of policies and measures and relevant regulations.

(4) Hainan Provincial Ministry of Commerce and Finance, the Ministry of Ecology and Environment, the General Administration of Customs, the General Administration of Taxation, and relevant industry departments shall formulate supporting management measures, and clarify the procedures for determining the list of enterprises that meet the conditions of policy measures. Enjoy the registration, operation, supervision and other provisions for tariff-free aircraft and ships (including relevant parts and components) transported into Hainan Free Trade Port after temporary exit repair, as well as the disposal standards and punishment measures for violations.

At the same time, relevant departments in Hainan Province should strengthen supervision, prevention and control risks, timely investigation and punishment of violations through information and other means, and strengthen the information interconnection of competent departments in the province, and share the supervision and other information of enterprises and relevant aircraft and ships (including relevant parts and components) that meet the conditions of policies and measures.

(5) The term of "temporary exit" as mentioned in these policies and measures shall be determined by the Customs on the basis of the goods repair contract submitted by the enterprise and the actual situation. Import taxes shall be levied on goods that are transported into China after the time limit for "temporary exit" in accordance with the regulations on the administration of taxation of general imported goods.

Ii. Temporary entry for repair

(1) In the special customs supervision area of Hainan Free Trade Port with "first-line" liberalization and "second-line" control of import and export management system (hereinafter referred to as the pilot area), the goods temporarily allowed to enter the pilot area for repair by enterprises from abroad since the date of implementation of this announcement are exempted from customs duties, import value-added tax and consumption tax; Where the goods are no longer shipped out of the country and converted into domestic sales, import formalities shall be completed as required, and import duties, value-added tax and consumption tax shall be levied according to regulations based on the actual state of inspection of the repaired goods.

(2) These policies and measures are only applicable to Yangpu Bonded Port Area, Haikou Comprehensive Free Trade Zone, Haikou Airport Comprehensive Free Trade Zone, and other special customs supervision areas approved by The State Council in Hainan Free Trade Port.

(3) The scope of goods to carry out the above repair business includes: 1. Goods in the comprehensive bonded area maintenance product catalogue formulated by the Ministry of Commerce, the Ministry of Ecology and Environment and the General Administration of Customs; 2. Goods that can carry out bonded maintenance business in accordance with the provisions of the "Notice of the Ministry of Commerce and other six units on the Pilot Relaxation of Management Measures for some Import and Export Goods in the Hainan Free Trade Port" (UNCTAD (2021) 264); 3. Other goods that are allowed to carry out bonded maintenance within the special supervision area of the customs of Hainan Free Trade Port in accordance with relevant regulations.

Unless permitted by laws, administrative regulations, provisions of The State Council or provisions made by relevant departments under The State Council in accordance with laws and administrative regulations, no repair business of goods prohibited from import or export by the State shall be carried out in the pilot area, and no dismantling, scrapping or other business shall be carried out by means of repair.

(4) The goods in the above-mentioned catalogue of maintenance products, which are permitted for domestic sale by the certificate of experience verification after repair, but belong to the goods prohibited from import by the State and restricted from import without permission, shall be transported out of the country after repair and shall not be transferred to domestic sale through the "second line"; Old and damaged parts that are replaced by maintenance goods in the repair process, as well as scraps generated in the repair process, shall not be transferred to domestic sales through the "second line".

(5) If an enterprise in the pilot area applies to carry out the above repair business, the administrative committee of the special supervision area of the customs where the enterprise is located will jointly study and determine the list of pilot enterprises together with the commerce, ecological environment and competent customs, and report it to the Commerce, ecological environment and Haikou Customs departments of Hainan Province for the record.

(6) Enterprises enjoying policies and measures shall establish an information management system that meets the requirements of customs supervision, which can track the whole process of repair consumption and other information, and carry out special management of repaired goods, damaged parts replaced in the repair process, scraps generated in the repair process, and waste materials after repair.

(7) Hainan Provincial Commerce Ministry, the Ministry of Ecology and Environment, the General Administration of Customs, the Ministry of Finance, the State Administration of Taxation and other departments to formulate supporting supervision plans to clarify the management of inbound repair goods, violation disposal standards, penalties and other contents.

At the same time, relevant departments in Hainan Province should strengthen supervision, prevention and control risks, timely investigation and punishment of violations through information and other means, and strengthen the information interconnection of competent departments in the province, and share information about the supervision of enterprises and repaired goods that meet the conditions of policies and measures.

(8) The goods temporarily entered from overseas into the pilot area for repair shall be bonded, and the customs shall handle the formalities in accordance with the bonded maintenance method and implement supervision.

Iii. Temporary entry goods

(1) For the following goods temporarily entering Shanghai, Guangdong, Tianjin, Fujian, Beijing Pilot Free Trade Zone and Hainan Free Trade Port from overseas, where the taxpayer pays a deposit equivalent to the duty payable to the Customs or provides other guarantees at the time of entry, it may temporarily not pay customs duties, import value-added tax and consumption tax:

(1) Professional equipment necessary for the temporary entry personnel to carry out business, trade or professional activities in accordance with the laws of our country (including software, instruments, equipment and supplies for news reporting or film production, television programs, etc.).

2. Goods intended for exhibition or demonstration.

3. Commercial samples, commercial videos and audio recordings.

4. Necessary sporting goods for sports competitions, performances or training.

(2) The above listed goods are only allowed to be used in the pilot areas specified in this policy, and shall not be used for commercial purposes such as selling or leasing during the temporary entry period, and shall be shipped out of the country within 6 months from the date of entry; If the time limit for re-shipment needs to be extended, the taxpayer shall, in accordance with the provisions of the General Administration of Customs, apply to the Customs for extension.

(3) Where the goods listed above are not transported out of the country within the prescribed time limit, import formalities shall be completed as required, and the customs shall levy import duties, value-added tax and consumption tax on imports in accordance with law.

(4) Where customs affairs guarantee business is involved, it shall be implemented in accordance with the relevant provisions on customs affairs guarantee.

This announcement shall come into effect as of the date of publication, and the imported goods that have been taxed before the announcement shall no longer be refunded.

Ministry of Finance

Ministry of Ecology and Environment

Commerce Department

General Administration of Customs

State Administration of Taxation

December 27, 2023

Source: State Administration of Taxation