Laws of the People's Republic of China

The Ministry of Foreign Trade and Economic Cooperation

Circular of the Ministry of Foreign Trade and Economic Cooperation on Strengthening the Issuance of Project Confirmation Document

WaiJingMaoZiZongHanZi [1998] No.254

May 6, 1998

Commissions (departments, bureaus) of foreign trade and economic cooperation of various provinces, autonomous regions, municipalities directly under the Central Government and municipalities separately listed on the State plan:

For further and better utilization of foreign capital, the State Council decreed that tariffs and import linkage value-added tax were eliminated for the imported equipment of foreign investment projects encouraged by the country as of January 1, 1998. The Circular for Adjusting Taxation Policies on Imported Equipment (GuoFa [1997] No.37) of the State Council, the Circular for Implementing Related Issues of the Circular for Adjusting Taxation Policies on Imported Equipment of the State Council jointly issued by the State Development Planning Commission, the State Economic and Trade Commission, the Ministry of Foreign Trade and Economic Cooperation and the General Administration of Customs (JiGuiHua [1998] No.250), and the Supplementary Circular for Implementing Related Issues of the Circular for Adjusting Taxation Policies on Imported Equipment (WaiJingMaoZiFa [1998] No.286) of the Ministry of Foreign Trade and Economic Cooperation explicitly provide for the authorities to review and approve the foreign investment projects that enjoy tax-free import of equipment and to issue the project confirmation document.

It is hereby reaffirmed that the limited-amount projects to be examined and approved as well as rendered the project confirmation document by foreign trade and economic authorities as prescribed by related regulations, the authorized review and approval as well as issuing authorities should be competent foreign trade and economic departments of all provinces, autonomous regions, municipalities directly under the Central Government and municipalities separately listed on the State plan. The power should not be transferred to a lower level. The project confirmation document should be copied to the Department of Foreign Investment of the Ministry of Foreign Trade and Economic Cooperation within 10 days upon its issuance for file-keeping purpose.

The materials to be submitted should include the photocopy of the project confirmation document and the counterfoil of the approval certificate.