Laws of the People's Republic of China

State Administration of Taxation

Official Reply of the State Administration of Taxation on Issues Concerning Tax Collection and Refund Rates Applicable for Export of Products Including Bean Curd Skin

Guo Shui Han [2005] No.944

Ningbo Municipal Bureau of State Taxation:

Your Request for Instructions on Issues Related to Tax Refunds for Export of Goods Including Bean Curd Skin (Yong Guo Shui Fa [2005] No.124) was received. Upon deliberation, the Official Reply is hereby given as follows:

1.

The bean curd skin manufactured by Zhejiang Pujiang Baokang Food Factory, which, before coming out, has to undergo processes of refining, filtration, heating up, membrane coagulation on the surface, scooping out for production, skin formation and packaging, shall be excluded from agricultural products to be taxed, and shall have the value added tax levied thereon at a rate of 17%. With regard to the bean curd skin which has been purchased and taxed at a rate of 13% by export enterprises in your municipality, your bureau shall demand export enterprises to ask supplying enterprises for the special invoices for value added tax paid at a rate of 17%. Otherwise, no payment is refundable.

2.

Liquid nitrogen containers, which are manufactured by Chengdu Golden Phoenix Liquid Container Co., Ltd. by using liquid nitrogen as a refrigerant (-196¡æ), are not only mainly helpful to the standing storage under an ultra-low temperature and transportation of livestock's frozen semen, vaccines, cells and microorganism by departments of animal husbandry, medical treatment and science & technology, but may also be devoted to departments of national defense, science & technology, machinery, medical treatment, electronic industry, metallurgy, energy and so on, shall be exempted from taxes imposed on agricultural machinery and shall have the value added tax imposed thereon at a rate of 17%. Tax refunds for export of liquid nitrogen containers, for which taxes upon agricultural machinery shall be paid by export enterprises in your municipality, shall comply with the Article 1 of this Official Reply.

3.

In accordance with pertinent consumption tax provisions, mini-horsepower motorcycles and mini-horsepower mopeds (which are all equipped with compound engines, and the mini-horsepower means an engine has a displacement ¡Ü50CC.) with separate commodity codes of "8711100010" and "8711100090" under the 2005 Rate Schedule of Consumption Tax for Exported Commodities shall fall under the levying scope of the consumption tax. A consumption tax shall be imposed upon the said goods, which are sold by manufacturing enterprises to export enterprises for export purpose, subject to relevant provisions. Export enterprises, if failing to provide exclusive consumption tax invoices for their export of such goods, may have the value added tax refunded instead of the consumption tax pursuant to provisions concerned.

State Administration of Taxation

October 10, 2005