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CIRCULAR OF THE MINISTRY OF FINANCE AND THE STATE ADMINISTRATION OF TAXATION ON ADJUSTING THE EXPORT REBATE RATES

Ministry of Finance, State Administration of Taxation

Circular of the Ministry of Finance and the State Administration of Taxation on Adjusting the Export Rebate Rates

CaiShui [2003] No. 222

October 13, 2003

The departments (bureaus) of finance and the bureaus of state taxes of all provinces, autonomous regions, municipalities directly under the Central Government and cities directly under State planning, the bureau of finance of Sinkiang Production and Construction Army Corps:

Upon approval of the State Council, structural adjustments shall be made on the current export rebate rates for value-added tax, and the notice on the relevant issues is given as follows:

1.

The current export rebate rates for the following goods shall remain unchanged:

(1)

The agricultural products whose current export rebate rates range between 5% and 13%;

(2)

The industrial products processed from agricultural products whose current export rebate rate is 13% (except for those prescribed in Articles 3 and 4 of the present Circular);

(3)

The goods whose VAT rate as prescribed in the current taxation policies is 17%, and tax refund rate is 13% (except for those prescribed in Articles 3 and 4 of the present Circular);

(4)

Ships, automobiles and their key components and parts thereof, aircrafts and spacecrafts, digital control machines, processing centers, printed circuits, railway engines, etc. whose current export rebate rate is 17% (refer to Annex 1 for the HS codes and commodity names);

2.

The export rebate rate for wheat flour, maize (corn) flour, severed ducks, severed rabbits and other goods as listed in Annex 2 shall be raised from 5% to 13%.

3.

The policies on export tax refund of crude oil, wood, paper pulp, fine goat hair, eel fries, rare earth metal minerals, phosphorus ores, natural graphite and other goods listed in Annex 3 shall be cancelled. As to the goods subject to the consumption tax, the policies on export rebate or exemption of consumption tax shall be cancelled accordingly.

4.

The export rebate rates for the following goods shall be lowered:

(1)

The export rebate rate for gasoline (HS code: 27101110) and unwrought zinc (HS code: 7901) shall be lowered to 11%;

(2)

The export rebate rate for unwrought aluminum, yellow phosphorus and other phosphorus, unwrought nickel and iron alloy, molybdenum ores and concentrates, and other goods listed in Annex 4 shall be lowered to 8%;

(3)

The export rebate rate for coke and semi-coke, coking coal, fused magnesia, dead-burned (sintered) magnesia, feldspar, talc, steatite and other goods listed in Annex 5 shall be lowered to 5%;

(4)

Except for the goods prescribed in Articles 1 through Article 3 and Paragraphs (1) through (3) of the present Article, the export rebate rate of any goods, whose current export rebate rate is 17% or 15, shall be lowered to 13%. The export rebate rate of all the goods whose current tax rate and tax refund rate is 13% shall be lowered to 11%.

5.

With regard to the export contracts signed by export enterprises with foreign parties before October 15th, 2003 on whole sets of equipment (whose export value is 2 million USD or more) or large mechanical and electronic products (whose unit price is 1 million USD or more) falling within the scope of Paragraph (4) of Article 4 of the present Circular whose prices are unchangeable, where the export date stipulated in the contract is later than July 1, 2004, such contracts must be registered and put into record before November 15th , 2003 with the competent tax refund organs upon the strength of their original export contracts and counterparts. The provincial bureau of state taxes shall, after examination and verification, submit the qualified export contracts and pertinent documents to the State Administration of Taxation by November 30th, 2003. After joint examination and approval of the State Administration of Taxation and the Ministry of Finance, the local bureau of state taxes shall handle the tax refund at the pre-adjusted tax rebate rate. With respect to any whole set of equipment or large mechanical and electronic product whose registration and record fail to be made before November 15th, 2003, the export rebate shall be handled at the adjusted tax refund rate.

6.

The administrations of finance and taxation in all regions shall earnestly study and grasp the present Circular, and take effective measures to seriously implement the relevant policies in the present Circular, handle tax refund in jure, and seriously defend the benefits of the State and the enterprises. They shall, in the meanwhile, closely cooperate with the competent departments of commerce, customs, foreign exchange, and the enterprises to further do well in export.

7.

As of July 1st, 2004, any enterprise that exports goods by any means shall be subject to the export rebate rates prescribed in the present Circular. The date of specific implementation shall be based on the departure date as indicated by the customs on the customs declaration list for the exported goods.

htm/e03246.htmAnnex 1

 

 

 Annex 1:

Catalogue of Products Whose Refund Tax Rate Remains 17%

 

HS Codes

Commodity Description

Remarks

8901-8902, 8904, 8905-8906, 8907

Ships

Among the HS Codes,  those whose current tax refund rate is 17% shall remain unchanged,  while for those whose tax refund rate is 13%,  the rates adjusted in the present Notice shall prevail

84073410, 84073420
84082010-84089010
84089092-84089093
87012000-87079090
87161000-87169000
84099191-84099199
84099991-84099999
8708

Automobiles and their key components and parts

The same as above

8456-8460, 8462

Digital control machine tools, machining centers,  combined machine tools

 

8425-8430
84671100-84678900
84743100-84748090
84791021-84791090

Machines for hoisting or

construction use,  mechanical hoisting equipment,  machines for construction and mining

The same as above

851730-85175029

Program-controlled telephone,  telegram exchanger,  optical communication equipment

 

9018-9020, 90221200-90221400
90222100

Medical apparatuses and appliances

 

8601-8606

Railway locomotives

 

84713000

portable digital automatic data processing devices below 10 kilograms

 

88

Aircrafts and spacecraft

 

8454-8455

Metal smelting equipment

 

8534

Printing circuits

 

 

 Annex 2:

Catalogue of Products of Which the Refund Tax Rate is Adjusted to 13%  

 

HS Codes

Commodity Description

Tax Refund Rates After Adjustment

Remarks

1. Edible Flour

 

 

 

1101

Wheat or maslin flour

13%

 

11022000

Maize (corn) flour

13%

 

11023010

Nonglutinous rice flour

13%

 

11023090

Other rice flour

13%

 

11031100

Groats and meal of wheat

13%

 

11031300

Groats and meal of maize (corn)

13%

 

11031921

Coarse grains and meal of nonglutinous rice

13%

 

11031929

Coarse grains and meal of other rice

13%

 

11032010

Wheat pellets

13%

 

11081100

Wheat starch

13%

 

11081200

Maize (corn) starch

13%

 

2. Severed Meat

 

 

 

02073510

Severed fresh or chilled duck

13%

Expansion code is needed.

02073520

Severed fresh or chilled geese

13%

Expansion code is needed.

02073610

froze duck

13%

Expansion code is needed.

02073620

froze geese

13%

Expansion code is needed.

02081010

Meat of rabbits,  fresh or chilled,  headless

13%

Expansion code is needed.

02081020

Meat of rabbits,  frozen,  headless

13%

Expansion code is needed.

02081090

Other meat of hares,  fresh or chilled

13%

Expansion code is needed.

  

Annex 3:

Catalogue of Products of Which the Tax Rebate is Cancelled

 

HS Codes

Current Tax Refund Rate (%)

Commodity Description

27090000

13

Petroleum crude oil and crude oil drawn from bituminous minerals

27101911

13

Aviation kerosene

27101912

13

Lamp kerosene

27101921

13

Light diesel oil

27101922

13

Fuel oil No. 5-7

27101929

13

Other diesel oil and other fuel oil

27101991

13

Lubricating oil

27101992

13

Lubricating grease

27101993

13

Basic oil of lubricating oil

27101999

13

Other heavy oil,  and other unnamed products taking above-mentioned oil as basic ingredient

27109100
27109900

13

Waste oil

4403

5

Wood log

4404

13

Hoop wood,  split poles,  planks,  pickets and roughly polished cudgels,  etc

4407

13

Wood sawn or chipped lengthwise,  sliced or peeled,  whether planed or not,  sanded or

finger-jointed,  of a thickness exceeding 6 mm

4408

13

Veneer sheets and sheets for plywood (whether or not spliced) and other wood sawn lengthwise,  sliced or peeled,  whether or not planed,  sanded or finger-jointed,  of a thickness not exceeding 6 mm

4409

13

Wood continuously shaped along any of its edges or faces,  whether planed or not, 

sanded or finger-jointed

30049090.2

17

Medicaments products

44190010

13

Disposable wooden chopsticks

4501, 4502, 4503

5, 13

Softwood and softwood products

Chapter 47

13

Wood pulp,  paperboard

4801-4816

13

Paper ,  paper pulp ,  paperboard

2601-2612, 2614-2622

13

Ores and concentrates,  including ferruginous,  manganese,  aluminum,  chromium,  lead,  zinc,  tin,  uranium or thorium,  molybdenum,  titanium ores and concentrates,  metal and other ores and concentrates,  slag,  dross,  ash and residues,  etc.

7401

13

Precipitated copper

7402

17

Unrefined copper,  copper anode used for electrolytic refining

7404

13

Copper waste and scrap

7110

13

Platinum,  unwrought or in semi-manufactured forms,  or in powder form

51021920

5

Fine goat hair,  not carded or combed

51053921

13

Dehaired goats wool,  carded or combed

51053929

13

Carded or combed wool of other goat

41031010

13

Raw hides and skins of goats,  done

25309020

13

Rare earth minerals

03019210

5

Eel fry

0506

5

Bones and horn-cores,  unworked,  defatted,  simply prepared (but not cut to shape),  treated with acid or degelatinised,  powders of the aforesaid products

2826900010

15

Potassium fluotantalate

29022000

15

Benzene

7201

13

Non-alloy pig iron and alloy pig iron

7204

13

Ferrous waste & scrap

75089010

13

Electroplating anodes of nickel

76020000

15

Aluminum waste & scrap

81019700

13

Tungsten waste & scrap

81102000

13

Antimony waste & scrap

2510

13

Natural calcium phosphates,  natural aluminum calcium phosphates & phosphatic chalk

2504

13

Natural graphite

2508

13

Other clay , etc.

28181000

15

Artificial corundum

28182000
28183000

15

Alumina oxide

 

 Annex 4:

Catalogue of Products of Which the Tax Rate Refund is Adjusted to 8%  

 

HS Codes

Commodity Description

Adjusted Tax Refund Rates

Remarks

2613

Molybdenum ores and concentrates

8%

  

28047010, 28047090

Yellow phosphorus ,  other phosphorus

8%

  

7502

Unwrought nickel

8%

 

72021100, 72021900

Ferromanganese

8%

 

72022100, 72022900

Ferrosilicon

8%

 

72023000

Ferro-silicon-manganese

8%

 

72024100, 72024900

Ferro-chromium

8%

 

7601

Unwrought aluminum

8%

 

  

Annex 5:

Catalogue of Products of Which the Tax Rate Refund is Adjusted to 5% 

 

HS Codes

Commodity Description

Adjusted Tax Refund Rates

Remarks

27040010

Coke and semi-coke

5%

 

27011210

Coking coal

5%

 

7403

Unwrought refined copper and copper alloys

5%

 

2519

Fused magnesia, dead-burned (sintered) magnesia

5%

 

25309090

Other mineral substances

5%

 

2526

Natural steatite, talc

5%

 

2529

Fluorite, feldspar, leucite, etc.

5%

 

2511

Natural barium sulfate, natural barium carbonate

5%

 

2825

Hydrazine etc, other inorg bases, metal oxides, etc.

5%

 

2841

Oxometallic salt or peroxometallic acids

5%

 

2849

Carbides

5%

 

2846

Rare-earth metal compounds of yttrium or scandium,  and their organic or inorganic compounds

5%

 

4410

Particle board and similar board of wood or other ligneous materials

5%

 

 

Annex 6:

Table of Tax Refund Record for Whole Sets of Equipment and Large Mechanical and Electronic Products

 

Region (Official):      _____ (Date) ____ (Month) ____ (Year)                        

Serial number

Enterprise's name

Equipment name

HS code

Amount of  equipment

Contract No.

Completed by

the end of 2003 or not

Predicted Performance

Remarks

1

 

 

 

 

 

 

 

 

2

 

 

 

 

 

 

 

 

3

 

 

 

 

 

 

 

 

4

 

 

 

 

 

 

 

 

5

 

 

 

 

 

 

 

 

6

 

 

 

 

 

 

 

 

7

 

 

 

 

 

 

 

 

8

 

 

 

 

 

 

 

 

9

 

 

 

 

 

 

 

 

10

 

 

 

 

 

 

 

 

Total

 

 

 

 

 

 

 

 


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