Custom Tax News
- Tariff exemptions end on some imports
Date: 25-Jan-2007 Sources: (Shenzhen Daily)
THE Ministry of Finance is to end tariff exemptions on 192 types of equipment imported for use in Chinese-invested projects from March 1.
The list of equipment to lose tariff-free status includes general machinery, smelting and mining machinery, packing materials and electronic devices, the ministry announced Monday.
The change will apply to Chinese-funded projects approved after March 1. Those approved before March 1 can maintain the tariff-free status on imports until Jan. 1, 2008.
Meanwhile, the tariff-free policy on equipment used in foreign-funded projects, which includes 20 items such as cars and electronic office fittings, will be maintained.
The ministry said the move would create a fair environment for domestic equipment makers to compete with foreign rivals through innovation.
The tariff-exemption policy on equipment used in projects where domestic and foreign investment was encouraged began in 1998, but 580 types of equipment for use in Chinese-invested projects and 20 types for foreign-funded ones were excluded in order to protect domestic industries.
Chinese enterprises have been suggesting that more types of equipment be removed from the list, as the country has been able to develop more equipment with higher technological standards and the old threshold for import tariff exemption was hurting domestic producers.
Experts say while China gave foreign investors tariff benefits to address a lack of investment after the Asian financial crisis, they are now less necessary as the country has seen an improving investment environment after joining the World Trade Organization.
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