Laws of the People's Republic of China

the General Administration of Customs

Circular of the General Administration of Customs on Relevant Issues concerning Policies of Import Duty for World Expo 2010 Shanghai

Shu Shui Fa [2006] No.3

January 4, 2006

Guangdong Branch of the General Administration of Customs, special commissioners' offices of the General Administration of Customs in Tianjin and Shanghai, and each customs office directly under the General Administration of Customs,

Preferential policies of import duty will be given to the materials imported for the purpose of holding World Expo 2010 Shanghai (hereinafter refers to as the World Expo) upon the approval of the State Council. We hereby make the following announcement on the relevant issues pertinent to the preferential policies of import duty and the implementation thereof:

I.

Specific contents of the preferential policies of import duty

1.

When the Bureau of Shanghai World Expo Coordination imports materials, which are donated by foreign governments and international organizations to the World Expo, of which the customs duties and value-added tax and consumption tax in the import linkage shall be exempted.

2.

Customs duties and import linkage value-added tax shall be exempted on non-for-sale design programs, such as models, maps, plates, optical discs, design specifications and microprints imported by Shanghai World Expo (Group) Co., Ltd. for the purpose of the construction of exhibition centers and exhibition halls for the World Expo.

3.

Customs duties and import linkage value-added tax shall be exempted in the light of the provisions of relevant policies on the equipment imported by Shanghai World Expo (Group) Co., Ltd. by means of general trade, which cannot be produced in China or the performance of domestic products cannot meet the requirements, and is used specifically for the construction of exhibition centers and exhibition halls for the World Expo and cannot be separated from the fixed installments of exhibition centers and exhibition halls. The range and quantity of the import facilities that enjoy the tax exemption policies shall be examined and ascertained by the Ministry of Finance through negotiation with the relevant departments.

4.

The exhibits and equipment imported by overseas exhibitors during the period of the World Expo shall be treated in light of the provisions on temporary entry goods when the import occurs. If they are re-transported out of China when the World Expo comes to the end, they shall be exempted from customs duties and import linkage value-added tax; if they are reserved to be used or sold off, the overseas exhibitors shall go through official import formalities and pay customs duties and import linkage value-added tax on them in the light of the regulations.

5.

The non-for-sale documents, such as publicity materials and designs, pertinent to the World Expo, and only used within the park areas of the World Expo without flowing into the domestic market that are imported by overseas exhibitors shall be managed in the light of the customs provisions, and shall be exempted from customs duties and import linkage value-added tax within reasonable quantity.

6.

Within the park areas of the World Expo, customs duties and import linkage value-added tax shall be exempted on building and decoration materials and fixed installation equipment that must be imported by overseas exhibitors for the construction and collocation of the exhibition halls. The range and quantity of building and decoration materials and fixed installment equipment that enjoy tax exemption policies shall be examined and ascertained by the Ministry of Finance through negotiation with the relevant departments.

7.

For the purpose of holding exhibition activities within the park areas of the World Expo, the national artistic works and special cuisine foods that must be imported by the Bureau of International Expositions, participating countries, and regional delegations shall be exempted from import duties and value-added tax and consumption tax in the import link within the scope of reasonable quantity and amount. The specific varieties, quantities, and amounts of import tax-exemption commodities shall be examined and ascertained by the Ministry of Finance through negotiation with the relevant departments.

II.

Relevant problems in the implementation of the policies

1.

The formalities for the examination and approval of tax exemption on import materials for the World Expo shall be brought into the Tax Deduction and Exemption Management System of the customs for management. Upon the strength of the Certificate of Tax Collection and Exemption on Import and Export Goods issued by the Shanghai Customs House, the customs house at the place of import shall carry out the formalities for tax-exemption admission . The ways of supervision over the import materials for the World Expo shall consist of: "General Trade" (Code No.0110), "Goods Imported or Exported Temporarily" (Code No.2600), "Entry/Exit Exhibits" (Code No.2700), and "Gratuitous Aid Materials of Countries and International Organizations" (Code No.3511), etc.. The nature of collection and exemption shall consist of: "Gratuitous Aid" (Code No.201) and "Reduction and Exemption upon State Approval" (Code No.898), etc..

2.

Where there involves in the aforesaid preferential policies of import duty the range, quantity, and amount of tax-exemption commodities, which shall be examined and ascertained by the Ministry of Finance together with the relevant departments, the customs houses shall carry out discharge formalities for the relevant import materials based on the duty guarantee, and after the scope, quantity and amount of tax-exemption commodities have been ascertained, carry out the relevant formalities for settlement of a case in light of the provisions.

3.

The preferential policies of import duty for the World Expo shall go into effect as of the day of December 7, 2005. The tax money collected on the relevant materials prior to this date shall not be refunded, and the duty deposit having been collected shall be transferred to tax. If the collected tax money or the collected duty deposit on relevant materials meets the provisions of item (1) or (2) of the aforesaid preferential tax policies, it shall be refunded after the relevant formalities have been gone through from December 7, 2005 till the date of receiving this Notice. If it is necessary to verify the range, quantity, and amount of tax-exemption commodities for other materials, after the related contents have been ascertained, the formalities for refunding tax or refunding duty deposit shall be gone through in accordance with the provisions.

If encountering any problem in the implementation, please reflect it to the Department of Tariff of the General Administration of Customs in time.

It is hereby announced.