ANNOUNCEMENT 20 Mar 2017
20th March 2017 - The General Customs Administration of the PRC announces it will be reinstating clauses from a 1997 State Council policy that exempt foreign investments (see Announcement No.33/2017) in designated sectors from all import-related taxes and duties.
This marks a change from the 2008 revision to the 1997 policy that meant such imports would only be exempt from import tariffs.
The announcement is the first departmental implementation at following an 'executive meeting' chaired by Premier Li Keqiang in December 2016 urging favourable policies for foreign investors, and the subsequent State Council Announcement No.5/2017 urging government departments to start enacting change (see related act).
NUMBER OF INTERVENTIONS
1. Announcement No.14/2017, PRC General Administration of Customs, 20th March 2017. (关于执行《中西部地区外商投资优势产业目录（2017年修订）)
2. Announcement No. 33/2017. PRC National Development and Reform Commission & Ministry of Commerce, 17th February 2017. (中西部地区外商投资优势产业目录（2017年修订）)
3. Announcement No.103/2008, PRC General Administration of Customs. (海关总署公告2008年第103号)
4. Announcement No.37/1997. State Council of the PRC (Archived by Hainan Provincial Government). (国务院关于调整进口设备税收政策的通知)
5. PRC Ministry of Industry and Information Technology, 20th December 2016. (李克强主持召开国务院常务会议确定扩大对外开放积极利用外资的政策措施 营造更加公平便利的市场环境)
6. Announcement No.5/2017, State Council of the PRC, 12th January 2017. (国务院关于扩大对外开放积极利用外资若干措施的通知)
On the 20th of March 2017, the Chinese General Administration of Customs announced its first official implementation following Premier Li Keqiang's 'executive meeting' (see source 5) with the State Council in December of 2016, outwardly urging for more policies that favour foreign investment within China.
The removes all taxes and tariffs on imports pertaining to foreign investment entreprises listed in an announcement from the National Develpoment and Reform Council and Ministry of Commerce (2017 revision). The affected industries differ from province to province, focusing on areas that are already points of economic strength for each region. Broadly speaking, the following sectors are prioritised for investment:
This brings current policy back into line with a 1997 State Council edict, which was the first to implement these tax and tariff exemptions for foreign investors. The 1997 policy was changed in 2008, exempting relevant firms only from import tariffs. VAT and other import taxes still applied, until now.