Laws of the People's Republic of China

the State Administration of Taxation

Reply of the State Administration of Taxation on the Relevant Taxation Measures for the Materials and Parts Picked up from Bonded Warehouses and Export Supervised Warehouses

Guo Shui Han [2005] No. 1153

The Shanghai Municipal Administration of State Taxation,

Your Request for Instruction as to Whether the Tax Exemption Certificates for the Processing Trade with Imported Materials Can Be Issued for the Materials and Parts Picked up from Bonded Warehouses and Export Supervised Warehouses (Hu Guo Shui Jin [2005] No. 49 ) has been received. Upon deliberation, our official reply is hereby given as follows:

It is informed by the General Administration of Customs that the term "bonded warehouses" shall mean the warehouses as established upon approval of the Customs exclusively for the storage of bonded imported goods and other goods for which the formalities of customs clearance have not been gone through, and term "export supervised warehouses" shall mean the special warehouses for storing the goods for which the export licenses or approval documents have already been obtained or the goods for which the foreign exchange has been settled and all customs export formalities have been completed. Considering the situation that bonded warehouses are used to store the imported materials and parts and the export supervised warehouses are used to store the goods for export, we hereby approve that the tax exemption certificate for the processing trade with imported materials may be issued for the materials and parts that are purchased by the enterprises from overseas and are picked up from the Customs bonded warehouses and for which the processing brochures on the imported materials have been prepared; but it may not be issued for the materials and parts that are picked up by the enterprises from export supervised warehouses.

State Administration of Taxation

December 7, 2005