Laws of the People's Republic of China

State Administration of Taxation

Supplementary Circular of the State Administration of Taxation to the Relevant Issues Concerning the Tax-exemption Policies for the Export of Products Containing Gold

Guo Shui Fa [2006] No. 10

The state taxation bureaus of all provinces, autonomous regions, municipalities directly under the Central Government, and cities specifically designated in the state plan:

Considering the problems in the implementation of the Notice of the State Administration of Taxation about the Tax Policies on the Export of Products Containing Gold (No. 125 [2005] of the State Administration of Taxation), a supplementary notice is given as follows:

I.

From May 1, 2005, for the export goods (See the concrete list in the Annex) of which the customs commodity codes are 3824909090, 7115901090, 7114200090, 71110000 and 28439000 but which don't contain gold or platinum, the tax refund (exemption) policies for export shall continue to apply. For the aforesaid goods already exported prior to the issuance of this Notice, if the time limit for export tax refund declaration has expired, the tax organs of all places shall accept the tax rebate declarations of the export enterprises in gear. During the course of examining and approving the tax refund for export, none of the tax organs may complete the tax refund formalities unless it, upon strict examination, is sure that the above-mentioned goods do not contain any gold or platinum. For other goods which are inside the above-mentioned customs commodity codes but which do not contain gold or platinum, the State Administration of Taxation of all provinces and cities shall first conduct a strict examination, then put forward handling opinions and finally submit formal documents to the State Administration of Taxation for approval.

II.

With regard to the export products containing gold (including gold and platinum) other than those inside the commodity codes as listed in the document No. 125, for instance, "91131000" "valuable metal watchband" the platinum watchband, shall be enforced the value-added tax exemption policy according to the regulations in the document No. 125. Article 6 of the Notice of the Ministry of Finance and State Administration of Taxation about the Tax Policies on Platinum and Its Products (No. 86 [2003] of the Ministry of Finance), which provides that "the tax refund for export does not apply to the input value-added tax on the part of the raw material of platinum of the export platinum products, the tax refund only applies to the processing fee in the processing link of platinum products on the basis of the prescribed tax rebate rate", shall not be implemented as of May 1, 2005.

III.

The products containing gold or platinum, which are exported in the form of processing with imported materials, shall be exempt from the value-added tax according to the document No. 125.

Annex: Statistic Form of Products Not Containing Gold (Platinum)(Omitted)

State Administration of Taxation

January 20, 2006