ANNOUNCED AS TEMPORARYNo
Internal taxation of imports
On 9 December 2010, the Ministry of Finance, the General Administration of Customs and the State Administration of Taxation jointly issued the "Notice on Issues concerning the Taxation on Air Materials Imported for Maintenance Purposes by Domestic Airline Companies Operating Regional Routes" (Caiguanshui '2010' No.58).
According to this Notice, operators of regional air routes qualify for import duty and VAT exemptions for aircraft parts used inthe maintanience of aircraft used on those routes. For the purposes of this Notice, 'regional routes' are designated routes within a province, as well as across provinces with a relatively shorter distance or smaller volume. 'Regional Airport' means a medium- or small-sized airport in the Planning on Civil Aviation Airports.
The regional Chinese air transport market isclosed to foreign companies. Hence, the stated measure does notconstitute a discrimination against foreign competitors for domesticcargo or passenger flights. To reflect the import tariff reduction, itis coded liberalizing.
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