ANNOUNCEMENT 28 Sep 2016
September 28th, 2016 - The Chinese government announced a change in its import tariff policy.
NUMBER OF INTERVENTIONS
PRC Ministry of Finance, Septmeber 28th, 2016. (财关税﹝2016﹞45号 关于“十三五”期间煤层气勘探开发项目进口物资免征进口税收的通知)
In September 2016, the Chinese Ministry of Finance announced a policy which granted tariff-free imports for certain equipment required for domestic coalbed gas exploration.
The listed equipment is deemed as that which was not currently manufactured in the PRC, or that which was, was inadequate for purpose.
Initially, one firm (China United Coalbed Methane Co.) and its partners were granted the exemptions. Other firms in the industry must apply through the relevant authorities before being able to enjoy the policy.
The policy runs over the course of the 13th Five-Year Plan.
In addition to the import tariff exemption, the Caiguanshui 2016/45 announcement also exempted the pertaining items from VAT when purchased, provided that they were imported.
The September 2016 announcement from the Chinese Ministry of Finance preferential import tariff scheme is only open to government-approved majority-Chinese controlled firms, this can be seen as a preferential treatment for natural gas exploration firms, that excludes fully foreign-controlled firms, hence the red classification of this intervention.