Laws of the People's Republic of China

Circular of the Ministry of Finance and the State Administration of Taxation concerning Lowering the Export Rebate Rates for Some Commodities

Cai Shui[2007] No. 90

Each department (bureau) of public finance, and state taxation bureau of each province, autonomous region, municipality directly under the Central Government and each city specifically designated in the state plan:

The export rebate rates for some commodities have been adjusted upon approval of the State Council. The related matters are hereby noticed as follows:

1.

Cancel the export tax rebates for the following commodities:

(1)

Endangered animals and plants, and their products;

(2)

The mineral products such as salt, solvent naphtha, cement, liquefied propane, liquefied butane and liquefied petroleum gas;

(3)

Fertilizer (not including urea and diammonium phosphate for which the tax rebates have been cancelled);

(4)

Chemical product such as chlorine, dyestuffs (excluding fine chemical products);

(5)

Metal carbides and activated carbon products;

(6)

Leather;

(7)

Some wood boards and one-off wood products;

(8)

Ordinary plain carbon welded pipe products (excluding petroleum casing pipes);

(9)

Simple products processed from nonferrous metals such as non-alloyed aluminum bars;

(10)

Segmented vessels and non-motor vessels.

See Appendix 1 for the names and HS codes of the specific commodities.

2.

Lower the rates of export tax rebate for the following commodities:

(1)

The rate of export tax rebate for vegetable oil shall be lowered to 5%;

(2)

The rate of export tax rebate for some chemical products shall be lowered to 9% or 5%;

(3)

The rate of export tax rebate for plastic, rubber and their products shall be lowered to 5%;

(4)

The rate of export tax rebate for boxes shall be lowered to 11%, and the rate of export tax rebate for other leather and fur products shall be lowered to 5%;

(5)

The rate of export tax rebate for paper products shall be lowered to 5%;

(6)

The rate of export tax rebate for garments shall be lowered to 11%;

(7)

The rate of export tax rebate for shoes, caps, umbrellas, and feather products, etc. shall be lowered to 11%;

(8)

The rate of export tax rebate for some stone materials, ceramic, glass, pearls, jewelries, precious metals and their products shall be lowered to 5%;

(9)

The rate of export tax rebate for some steel products (petroleum casing pipes excluded) shall be lowered to 5%, but the oceanographic engineering structures for domestic sale as stipulated in the "Circular of the Ministry of Finance and the State Administration of Taxation Concerning the Application of VAT Rebate to Oceanographic Engineering Structures" (Cai Shui [2003] No. 46) shall still be governed by the original rate of tax rebate;

(10)

The rate of export tax rebate for other base metals and their products (not including export rebates commodities which have been cancelled or which are being cancelled, as well as aluminum foils, aluminum pipes and aluminum structures, etc.) shall be lowered to 5%;

(11)

The rate of export tax rebate for planers, slotting machines, cutting machines, and broaching machines, etc. shall be lowered to 11%, and the rate of export tax debate for diesel engines, pumps, fans, exhaust valves and the parts thereof, rotary furnaces, coke furnaces, sewing machines, staplers, golf carts, over-snow vehicles, motorcycles, bicycles, trailers, elevators and the parts thereof, faucets, soldering machines, etc. shall be lowered to 9%;

(12)

The rate of export tax rebate for furniture shall be lowered to 11% or 9%;

(13)

The rate of export tax rebate for clocks, watches, toys and other miscellaneous products, etc. shall be lowered to 11%;

(14)

The rate of export tax rebate for some wood products shall be lowered to 5%;

(15)

The rate of export tax rebate for viscose fiber shall be lowered to 5%.

See Appendix 2 for the names and HS codes of the specific commodities.

3.

The following commodities shall be duty free when exported:

Peanut kernels, canvas, decorative carved boards, postage stamps, duty stamps, etc.

See Appendix 3 for the names and HS codes of the specific commodities.

4.

Implementation Time

The export rebate rates which have been adjusted for the commodities mentioned above shall be enforced as of July 1, 2007. The specific implementation time shall be the date of export as indicated on the customs' "Declaration Form for the Export of Goods (specially used for export rebates)".

The original rebate rate shall be permitted to continue to apply to the export enterprise if it has signed a vessel export contract relating to cancelled export rebates before July 1, 2007, and brought the export contract (original copy and counterpart) to the taxation authority responsible for export rebate taxes for registration and archival filing before July 20, 2007, the export tax rebate treatment shall be considered as having been cancelled in case it fails to handle the procedures for archival filing before July 20, 2007.

For the export equipment and building materials involved in a long-term foreign contracted engineering project for which an export enterprise eligible for foreign contracted engineering won the bid before July 1, 2007 or in a contract for long-term foreign contracted engineering including an unchangeable price which the enterprise concluded before July 1, 2007, the original export tax rebate rate shall be permitted to continue applying to the enterprise if the effective bid-winning certificate (original copy and duplicate), or the concluded contract for long-term foreign contracted engineering (original copy and duplicate) and the list of engineering estimation had been bought by the enterprise to the taxation authority responsible for export tax rebates for registration and archival filing before July 20, 2007. The adjusted export tax rebate policies shall apply if it fails to handle the procedures for archival filing before July 20, 2007.

Appendixes:

1. List of Commodities the Export Rebates of Which Are Cancelled (omitted)

2. List of Commodities the Export Rebate Rates of Which Are Lowered (omitted)

3. List of Commodities Which Will be Duty Free (omitted)

The Ministry of Finance

The State Administration of Taxation

June 19, 2007