Measures of the Customs of the People's Republic of China on the Supervision and Taxation of Imported and Exported Goods of Foreign-invested Enterprises

Chapter I General Provisions Article 1 In order to encourage foreign companies, enterprises and other economic organizations or individuals to come to China to set up Sino-foreign joint ventures, Sino-foreign cooperative ventures and foreign-funded enterprises (hereinafter referred to as foreign-invested enterprises), to carry out the national industrial policy, to develop the national economy, to facilitate lawful entry and exit, and to strengthen the supervision and control of the Customs, and in accordance with the "Customs Law of the People's Republic of China*** and the State Customs Law" and the provisions of the relevant laws and regulations. Formulate these measures. Article 2 Foreign-invested enterprises shall fulfill their obligations in accordance with the laws and regulations of the People's Republic of China and the provisions of these Measures, and their imported and exported goods shall be declared to the Customs truthfully, be subject to the supervision of the Customs and enjoy the relevant preferences. Article 3 For foreign-invested enterprises that comply with the Customs regulations, the Customs shall, after examination and approval, award them the title of "enterprises with good reputation" and provide them with corresponding facilities in handling Customs procedures. Article 4 Foreign-invested enterprises that meet the conditions of Customs supervision may be authorized to establish bonded warehouses and bonded factories. When the Customs deems it necessary, it may station customs officers in the foreign-invested enterprises to supervise and handle customs procedures. The enterprises concerned shall provide the necessary facilities. Article 5 The goods imported by foreign-invested enterprises belonging to the "Chinese People's *** and State Customs Law" of the customs supervision of goods, without the permission of the Customs, shall not be sold, transferred, mortgaged or diverted to other uses. Chapter II Registration Procedures and Inspection and Release of the basis of Article 6 Foreign-invested enterprises shall hold the Chinese People's Republic of China * * * and the foreign economic and trade administration or its authorized institutions issued by the approval certificate and the Chinese People's Republic of China * * * and the State Administration for Industry and Commerce or its authorized agencies to issue a copy of the business license, etc., a copy of the documents or copies, as well as the articles of association, the contract, the competent Customs for the record of the registration of the enterprise. Article 7 The investing parties of a foreign-invested enterprise shall, in accordance with the provisions of the contract and articles of association, pay the capital contribution in accordance with the relevant provisions of the State and submit the capital verification report to the Customs within one month after the capital verification. Article VIII of foreign-invested enterprises for import and export of goods for customs clearance procedures, foreign-invested enterprises shall fill in the special import or export of goods declaration to the Customs, and submit the goods invoices, container lists and other relevant documents; belonging to the state shall be required to apply for licenses of goods, but also to the Customs submitted to the import (export) license; does not belong to the state licensing of goods, the Customs with the approval of the establishment of the enterprise documents or import and export contracts for clearance. or import and export contract acceptance and release.

Foreign-funded enterprises imported for their own use, a reasonable amount of goods are exempted from the approval of the import license. Article IX foreign-invested enterprises to solve the foreign exchange balance of payments to buy non-enterprise products for export, the Customs should be examined with the approval of the competent economic and trade documents; which belongs to the state to implement the export license for the management of goods, with the approval of the documents to apply for an export license, the Customs with the inspection and release. Article foreign-invested enterprises should be imported before the goods with the approved contract equipment list and other documents to the competent Customs for tax exemption approval procedures. Approved by the Customs issued by the "Chinese People's *** and the State Customs on foreign-invested enterprises imported goods tax exemption certificate" (hereinafter referred to as "tax exemption certificate"). When the goods are imported, the enterprise holds the Certificate of Tax Exemption for customs clearance.

The Certificate of Tax Exemption issued by the Customs is valid for three months. In case of special circumstances, approved by the competent Customs, can be extended. The maximum extension period is three months.

The above tax-exempted goods shall be subject to inspection and release procedures by the competent Customs, or may be subject to inspection and release procedures by the Customs in the territory of entry. The third part of the Certificate of Tax Exemption shall be returned to the competent Customs for verification within one month after the inspection and release of the goods. Article XI for the fulfillment of product export contracts for foreign-invested enterprises, the Customs issued by the "People's Republic of China * * * and the State Customs of foreign-invested enterprises to fulfill product export contracts for imported materials processing re-export registration manual" (hereinafter referred to as "registration manual").

Foreign-invested enterprises for the fulfillment of product export contracts for the import of raw materials, fuels, bulk, parts, components, components, ancillary parts, auxiliary materials and packaging materials, by the Customs in accordance with the supervision of bonded goods, imports, exempt from import licenses, the Customs inspection and release of enterprise contracts or import and export contracts.

Foreign-invested enterprises to process the export of products, all belong to the state to implement the management of export licenses, when exported, the Customs inspection and release of export licenses. Chapter III Taxation of imported and exported goods Article XII of foreign-invested enterprises in accordance with the provisions of the total amount of investment and approved additional investment in the import of goods, can enjoy the Customs to give tax relief concessions on goods imported in excess of the amount of investment, shall be taxed accordingly. Article 13 The following goods imported by a Sino-foreign equity joint venture shall be exempted from customs duties and uniform industrial and commercial taxes:

(1) machinery and equipment, parts and components, and other materials [other materials refer to those required for the construction of factories (yards) as well as for the installation and reinforcement of machinery, hereinafter referred to as the same] which have been capitalized as a contribution of the foreign joint venture in accordance with the provisions of the contract;

(2) machinery and equipment, parts and components, and other materials imported from funds within the total amount of investment;

(3) imported with additional capital for the domestic production of machinery and equipment, parts and other materials can not guarantee the supply. Article 14 Foreign-funded enterprises shall be exempted from import tariffs and unified industrial and commercial taxes for importing the goods stipulated in Article 13 as well as production management equipment. Article XV Sino-foreign cooperation in the exploitation of marine oil imported directly for exploration, development operations, machinery, equipment, spare parts and materials; for the manufacture of mining operations, machinery, equipment, spare parts and materials imported and the use of foreign capital imports belonging to the development of energy, railroads, highways, ports and ports of the capital construction, industry, agriculture, forestry, animal husbandry and aquaculture, deep-sea fisheries, fishing, scientific research, education and health care Projects in the field of imported machinery and equipment in accordance with the provisions of the contract, as well as the construction of factories (farms) and installation, reinforcement of machinery and equipment materials required, exempted from import duties and industrial and commercial unified tax.