Laws of the People's Republic of China

CIRCULAR OF THE STATE COUNCIL ON STARTING LEVY OF
IMPORT REGULATORY TAXES ON CERTAIN IMPORT GOODS

 (Proclaimed on June 26, 1985 by the State Council)

 

 

SUBJECT: TAXATION

ISSUING-DEPT: STATE COUNCIL OF CHINA

ISSUE-DATE: 06/26/1985

IMPLEMENT-DATE: 06/26/1985

LENGTH: 646 words

TEXT:

Recently, some regions and units have spent large amounts of foreign exchange by blindly importing commodities and complete sets of unassembled parts, where there is a great price differential between the domestic and international price.  This has had a detrimental effect on the further development of the national economy.  Besides intervening with administrative measures, these problems must be regulated by further economic measures.  Therefore it has been decided that at the same time as Customs duty and import linked Product Tax (or Value Added Tax) is levied on certain commodities, Import Adjustment Tax will also be levied.  The relevant issues are as follows:

(1) Taxable products: motor cars, coaches, work vans, cross-country vehicles and other small motorised passenger vehicles, trucks under 8 tonnes, motor cycles, video recorders, photocopiers, colour projection, television sets, television kinescopes, electronic calculators, microcomputers and peripherals in processed polyester thread and chemical fibre fabrics.  For the adjustment tax rate on taxable items see the table in the appendix.

(2) Import Adjustment Tax will be levied (or a supplementary payment will be levied) by Customs authorities at the same time as Customs duty is levied.

(3) The Import Adjustment Tax shall be levied on the CIF price of the commodity.

(4) Commodities which are stipulated in measures on the reduction of or exemption from duty and tax formulated by the State Council or the General Administration of Customs and the Ministry of Finance will have a corresponding reduction of or exemption from the Adjustment Tax.

(5) Where a reduction of or exemption from Import Adjustment Tax is required for commodities which are taxable, inspection and approval will be made by the State Economic Commission.  Reduction or exemption will be granted by Customs authorities based on the certificate issued by the State Economic Commission.

(6) Other relevant matters concerning the levying of Adjustment Tax may be handled with reference to the provisions of the "Rules Governing Import and Export Duties of the People's Republic of China".

(7) The tax rate on taxable items and the commencement date for the levying of the Adjustment Tax will be promulgated by the General Administration of Customs.

(8) The various Special Economic Zones and Hainan Administrative District will also carry out matters in accordance with the above regulations.

Appendix

SCHEDULE OF TAXABLE ITEMS AND TAX RATE FOR IMPORT
ADJUSTMENT TAX
Tax		Import duty		Import
Regulation	Name of Commodity			Adjustment
		Lowest	General	Tax
Number
51.01	1. processed polyester thread	70%	90%	40%
51.04	2. other synthetic fibre fabric	100%	130%	40%
56.07	4. other man-made fibre fabric	100%	130%	40%
	chemical fibre (staple or silk	100%	130%	40%
	waste) fabric
84.52	1. electronic calculator	60%	80%	80%
84.53	2. digital automatic data
	processing equipment:
	2) digital automatic data	50%	70%	40%
	processing equipment with less
	than a 32 bit capacity
	3. peripherals; external	30%	40%	30%
	devices of digital automatic
	data processing equipment with
	less than a 32 bit capacity
85.15	4. television receiver and	80%	100%	70%
	combined system: colour
	projection television set
85.21	1. electron tube	30%	40%	50%
	2. television kinescope
87.02	1. motor car, jeep, work van	120%	150%	80%
	and other small motorised
	passenger vehicles
	6. truck under 8 tonnes (not	50%	70%	50%
	including 8 tonnes)
87.09	Motor cycle, moped and bicycle	120%	150%	20%
	with supplementary motor; with
	or without a side car, various
	side cars
90.10	2. photocopier	50%	70%	80%
92.11	3. audio-video recording and	80%	100%	70%
	projection equipment