ANNOUNCEMENT 20 Mar 2020

March 20th, 2020 - The Chinese finance ministry announced the expansion of a preferential import policy.

NUMBER OF INTERVENTIONS

2

  • 1 harmful
  • 0 neutral
  • 1 liberalising

SOURCE

PRC Ministry of Commerce, March 20th, 2020. (财关税〔2020〕6号 关于取消陆上特定地区石油(天然气)开采项目免税进口额度管理的通知)
http://www.chinatax.gov.cn/chinatax/n810341/n810755/c5147596/content.html

Alternate link from Hebei Province MOFCOM:
http://czt.hebei.gov.cn/root17/zfxx/202004/t20200403_1200081.html

Inception date: 20 Mar 2020 | Removal date: 31 Dec 2020

Import tariff quota

On March 20th, 2020, the Chinese finance ministry released Cai Guan Shui 2020/6 (hereafter, 'Announcement'), which amended the rules surrounding a preferential policy applying to firms in the terrestrial oil/gas exploration sector.

The Announcement stated that quotas on tax-free equipment imports made under the scheme, which had started in 2016 (see related act), were to be waived immediately, not limiting the amount of equipment allowed to be imported free of duties.

HS codes are taken from the original 2016 policy announcement.

Inception date: 20 Mar 2020 | Removal date: 31 Dec 2020

Tax or social insurance relief

In March 2020, the Chinese finance ministry removed quotas on tax-free imports of certain goods for firms in the terrestrial oil/gas exploration sector.

As the policy de facto applies to Chinese firms only, the removal of tariffs constitutes an further discriminatory tax treatment for other firms in the sector, hence the red GTA rating of this intervention.