Laws of the People's Republic of China

Circular of the State Administration of Taxation concerning the Related Issues on Intensifying the Levying Management of Business Tax on Commissioned Customs Declarations

Guo Shui Han [2006] No. 1310

The local taxation bureaus in each province, autonomous region, municipality directly under the Central Government and city specifically designated in the state plan:

For the purpose of intensifying the levying management of the business tax on commissioned customs declarations, The related issues are hereby notified as follows:

1.

Policies for the business tax on commissioned customs declarations

"Commissioned customs declarations" means the business in which the taxpayer accepts the entrustment of the consignor and the consignee of import or export goods for handling the related customs declaration procedures, and the business tax on it shall be levied as per the tax category of "service industry-agency service". When engaging in the business of commissioned customs declarations, the taxpayer shalldeclare and pay the business tax on the basis of the balance of all the fees levied from the principal and other expenses deducted by the amount of the following items:

(1)

tariffs, visa fees, extension fees, late payments, inspection fees, document fees, electronic customs declaration platform fees and storage fees paid to the customs;

(2)

fees of commodity inspection, sanitary inspection and animal & plant quarantine, fumigation fees, disinfection fees, and electronic insurance platform fees paid to the inspection and quarantine department;

(3)

pre-inputting fees paid to the pre-inputting entity; and

(4)

other fees as provided for by the State Administration of Taxation

2.

Levying management of the business tax on commissioned customs declarations

When engaging in the business of commissioned customs declarations, a taxpayer shall produce invoices to the trustor in terms of all the fees levied from the principal and other expenses from the business of commissioned customs declarations.

When engaging in the business of commissioned customs declarations, A taxpayer shall take the invoices produced thereto or other valid certificates as the vouchers for deduction of business tax.

This Circular shall enter into force as of January 1, 2007.

The State Administration of Taxation

December 31,2006