On 25 December 2008, the Ministry of Finance, General Administration of Taxation, and the General Administration of Customs jointly issued the "Adjustment of Certain Policies on Import Tax Incentives" (Annoucement '2008' No.43) for the purpose of reforming the VAT regime.
 
According to this announcement, starting from 1 January 2009, the import VAT levied on the following products will be suspended:

1. Imported equipment for accredited projects with foreign investment, or projects relying on loans from foreign governments or international financial organizations;
2. Imported equipment for FDI projects accredited and listed by the Catalogue on Guiding FDI in Central and West China; and
3. Imported equipment by software manufacturers, integrated circuit manufacturers, and public transportation programs.