Laws of the People's Republic of China

General Administration of Customs

Announcement No.7, 2006 of the General Administration of Customs Concerning Promulgation and Implementation of Catalogue for Guidance of Industrial Structure Adjustment (2005)

No.7, [2006]

Upon the approval of the state council, the National Development and Reform Commission delivered the Catalogue for Guidance of Industrial Structure Adjustment (2005), (hereinafter referred as Catalogue for the Guidance of Industries and the detail of which attached), through Decree No.40 of the National Development and Reform Commission of the People's Republic of China. The decree provides that the catalogue shall be put into effect from December 2, 2005. Some issues related to the execution in the customs are promulgated as follows:

1.

From December 2, 2005, the formalities to exempt the obligations of paying Import Tariffs and Tax on value added in the process of importing could be conducted complying with the Circular of the State Council on Adjustment of Imported Equipment Taxation Policies (Guo Fa [1997] No.37) based on project confirming documents given by the competent departments in charge of investment, if the imported appliances self-serviced don't fall into the scope of goods provided in the Catalogue of Non-duty-Free Commodities to be Imported for domestic-funded Projects, and the imported cost of which is not beyond the total invested money and the domestic invested project belongs to the encouraged classification in Catalogue for the Guidance of Industries.

2.

After implementation of Catalogue for the Guidance of Industries, the coding of the "Items of the Project Industrial Policy under Examination and Approval" shall be "I" in the project confirmation documents. For example, the first item in the first group of the encouraged classification in Catalogue for the Guidance of Industries shall be filled in as follows: the Upgrade low- and Medium-yield Farmland Synthetical Transformation and Stable- and High-yields Fundamental Farmland Construction (I0101); the second item in the sixth group shall be filled in as follow: Natural Gas Hydrate exploratory development (I0602).

3.

In order to keep the consistency of policy, the domestic invested project which is examined and approved or checked or filed before December 2, 2005 (December 2, 2005 is not included) may, in case that the project conforms to the Catalogue of Industries, Products and Technology Currently Particularly Encouraged by the State for Development (revised in 2000), continue to conduct the formalities to exempt the obligations of paying import tariffs and tax on value added in the process of importing complying with the original concerned regulations. And the date of the project's examination and approval or check or filing will be set as the standard with respect to the time consideration. The related project unit shall hold relevant materials to the customs for applying to conduct the filing formalities of tax deduction and exemption before December 12, 2006, and out of such date the customs will not accept and deal with the application hereinbefore. The materials include the project confirmation documents delivered by the competent departments of investment and the "Items of the Project Industrial Policy under Examination and Approval" shall be filled in the same as the original examined and approved items and coding.

4.

If the project confirmation documents delivered by the competent departments in charge of investment need to be modified, the modification shall only be made by the delivered department by the way of "correspondence"; the way of making modification directly in the copy of the confirmation document shall be forbidden and such modification will be rejected by the customs.The announcement is hereby specially issued.

Annex: the Catalogue for Guidance of Industrial Structure Adjustment (2005) (omitted).

General Administration of Customs

February 9, 2006