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Announcement of the General Customs Administration
No.67 [2007]
The National Development and Reform Commission and the Ministry of Commerce jointly promulgated the Catalogue for the Guidance of Foreign Investment Industries (Amended in 2007) (hereinafter referred to as the Catalogue, see Appendix for details) by Decree No.57 upon the approval of the State Council, which shall enter into force as of December 1st, 2007. We hereby notify issues that may be encountered by the customs in enforcing the Catalogue as follows:
1.
Since December 1 2007, as regards foreign investment projects (including capital increase projects) that are approved by the competent department of investment of the State Council or any province, autonomous region, municipality directly under the Central Government or city specially designated in the state plan within its administrative power and fall into the encouraged category of the Catalogue, with regards to the self-use equipment and the technologies, components and spare parts attached to such equipment imported within the aggregate investment, except for those listed in the Catalogue for Foreign Investment Projects of Import Commodities Not Exempted from Tax, the customs shall keep handling the archive-filing procedures and examining and approving procedures for the exemption of import duty and import-linkage VAT according to the related provisions of the Urgent Circular of the General Customs Administration on Implementing the Circular of the State Council on Adjusting the Tax Policies on Import Equipment (Shu Shui [1997] No.1062, hereinafter referred to as Circular).
If a foreign investment project is approved by the competent department of foreign investment after December 1, 2007 (the date of approval shall be the date indicated as when the application report is approved) and des not fall within the encouraged category of the Catalogue, the customs may not accept the application made by any project entities for handling the archive-filing procedures for tax deduction or exemption.
2.
For the purpose of maintaining the consistency among policies, if a foreign investment project is approved prior to April 1, 2002 according to the Catalogue of Industries for Guiding Foreign Investment (1997) and falls within the encouraged category or restricted category II, and if a foreign investment project is approved during the period from April 1, 2002 to November 30, 2007 according to the Catalogue for the Guidance of Foreign Investment Industries (Amended in 2002) and the Catalogue for the Guidance of Foreign Investment Industries (Amended in 2004) and falls within the encouraged category, the customs shall handle the archive-filing procedures and examining and approving procedures for the exemption of import duty and import-linkage VAT according to the Circular and the Announcement No.35 [2007] of the General Customs Administration. Among others, the project entities of the encouraged foreign investment projects approved during the period from April 1, 2002 to November 30, 2007 must file an application with the customs for handling the archive-filing procedures for tax deduction or exemption upon the strength of the project confirmation letter and other required materials prior to December 31, 2008. The customs shall not accept any such application thereafter.
3.
After the Catalogue is enforced, the code of the "Items Subject to the Examination and Approval of Industrial Policies" in the project confirmation letter shall be "J", for example, Item (1) of the first category shall be filled in as: Improvement of low and medium yielding field (J0101); and Item (1) of Article 1 of the third category shall be filled in as: Development and production of biology feeds, straws and stalks feeds and aquatic feeds (J030101).
Appendix: Catalogue for the Guidance of Foreign Investment Industries (Amended in 2007) (Omitted)
General Customs Administration
November 26, 2007
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Promulgated by General Customs Administration on 2007-11-26
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