[ad_1]
Original Title: Here Comes The List! Some Raw Materials From Hainan Free Trade Port Companies Are Exempt From Import Duties
Chinese customer-Singapore Jingwei, Nov 12. On the 12th, the Ministry of Finance, the General Administration of Customs and the State Tax Administration jointly issued the “Notice on” Zero Fee “Policy for Raw and Auxiliary Materials of Hainan Free Trade Port” (hereinafter referred to as the “Notice”), clarifying Hainan Policies related to “zero tariff” on raw materials from free trade ports.
The “Notice” stipulates that prior to the island-wide customs operation, companies registered in the Hainan Free Trade Port and having independent legal personality shall import for production for their own use, carry out production and processing activities in the “two ends out” mode or use “two ends out” mode. Raw and auxiliary materials consumed in the service trade process are exempt from import duties, import value added taxes, and consumption taxes.
The “zero fee” raw and auxiliary materials are subject to positive list management, and the content of the list is dynamically adjusted by the Ministry of Finance and relevant departments according to the actual needs and regulatory conditions of Hainan.
According to the Hainan Free Trade Port “zero fee” raw and auxiliary materials list attached to the “Notice”,There are a total of 169 related raw and auxiliary material items, including other agricultural products such as barley and other unseeded oats, energy products such as crude oil and liquefied natural gas, forest products such as softwood logs and teak logs. treated with preservatives and other types of aluminum. Manufacturing structures and their parts, compression ignition internal combustion marine engines, other radar equipment and other property.
The “Notice” requires that the parts listed on the list be subject to the “zero duty” policy for raw and auxiliary materials, and must be used for aircraft and ship maintenance (including maintenance of related parts). If one of the following conditions is met, import duties and import links are exempt Value Added Tax and Consumption Tax – Used to repair aircraft and ships (including related parts and components) entering the country from abroad and they are forwarded out of the country; It is used to repair aircraft (including related parts and components) operated by aviation companies with Hainan as the main base of operations. ; It is used to repair ships (including related parts and components) operated by Hainan registered shipping companies with independent legal personality, with ports in Hainan province as ports of registry.
Source: official website of the Ministry of Finance
According to the list, the parts and components refer to the products listed in the list tariff number 141-169, including other aluminum structures and their components, compression-ignition internal combustion marine engines, other radar equipment, other radio reception equipment, radar and radio navigation equipment. Other parts of equipment, other parts of airplanes and helicopters, etc.
Furthermore, the “Notice” clarified that “zero duty” raw materials can only be produced and used by companies in the Hainan Free Trade Port, subject to customs supervision, and cannot be transferred or left on the island. If it is necessary to move to or leave the island due to commercial bankruptcy or other reasons, it will be approved and will go through procedures such as paying taxes. For goods processed and manufactured with “zero tariff” raw materials and sold on the island or sold on the mainland, the import duty, the import value added tax and the consumption tax on raw materials must be paid. corresponding taxes, and the internal value added tax and the consumption tax will be charged in accordance with the regulations. The export of goods processed and manufactured with raw and auxiliary materials “zero tariff” will be implemented in accordance with the tax policies in force for export goods.
Companies that import raw materials listed on the positive list and voluntarily pay import value added tax and consumption tax can apply at the time of customs declaration.
The relevant departments should strengthen supervision through computerization and other means, prevent and control possible risks, promptly investigate and sanction violations, and ensure the proper functioning of the “zero fee” policy for raw and auxiliary materials. The relevant departments of Hainan Province should strengthen information interconnection and share regulatory information on aircraft and ships. This “Notice” will be implemented as of December 1, 2020. (Jingwei China-Singapore APP)
Massive information, accurate interpretation, all in the Sina Finance APP
Editor in Charge: Liu Wanli SF014
