IMPLEMENTATION LEVEL

National

AFFECTED FLOW

Outflow

ANNOUNCED AS TEMPORARY

No

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

firm-specific

JUMBO

No

TARIFF PEAK

No
← back to the state act
Inception date: 01 Sep 2014 | Removal date: open ended
Still in force

Tax-based export incentive

On the 1st of September 2014, China's State Administration of Taxation announced a policy that was piloted in the Dongjiang Free Port Trade Zone of Tianjin was to be implemented nationally.

The policy allowed exporters leasing certain equipment to overseas lessees for periods of more than five years to be eligible for export tax VAT and consumption tax refunds on those goods.

The equipment to which the announcement refers can be seen in Order of the PRC Ministry of Finance and State Administration of Taxation No.50, article 21:

'Fixed assets referred to in the preceding paragraph refer to machines, machinery, means of transport and other equipment, tools and appliances related to operation and production that have a useful life of more than 12 months.'

In addition, any oil and gas exploration equipment detailed in Circular No. 39/2012 is also eligible (see related measure for more info on this announcement). This refers to the HS codes included in this intervention.

The announcement was a direct response to the State Council's Guobanfa 19 of 2014 - see related measure.

AFFECTED COUNTRIES

MAP
TABLE
EXPORT

AFFECTED SECTORS AND PRODUCTS

421 Structural metal products & parts
7308 Structures (excluding prefabricated buildings of heading 94.06) and parts of structures (for example, bridges and bridgesections, lockgates, towers, lattice masts, roofs, roofing frameworks, doors and windows and their frames and thresholds for doors,
730810 Bridges and bridgesections
730830 Doors, windows and their frames and thresholds for doors
730890 Other
444 Machinery for mining, quarrying & construction; parts
8430 Other moving, grading, levelling, scraping, excavating, tamping, compacting, extracting or boring machinery, for earth, minerals or ores; piledrivers and pileextractors; snowploughs and snow blowers.
843041 Selfpropelled
493 Ships
8901 Cruise ships, excursion boats, ferryboats, cargo ships, barges and similar vessels for the transport of persons or goods.
890120 Tankers
890190 Other vessels for the transport of goods and other vessels for the transport of both persons and goods
8904 Tugs and pusher craft.
890400 Tugs and pusher craft.
8905 Lightvessels, firefloats, dredgers, floating cranes and other vessels the navigability of which is subsidiary to their main function; floating docks; floating or submersible drilling or production platforms.
890520 Floating or submersible drilling or production platforms
890590 Other
8907 Other floating structures (for example, rafts, tanks, coffer dams, landingstages, buoys and beacons).
890790 Other

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