Circular of the Ministry of Finance, the National Development and Reform Commission, the Ministry of Commerce, the General Administration
of Customs and the State Administration of Taxation on Adjusting the Export Rebate Rate for Some Commodities and Supplementing the
Prohibitive Catalog for Processing Trade
Cai Shui [2006] No. 139
Finance Departments (Bureaus) in all provinces, autonomous regions, municipalities directly under the Central Government and cities
specially designated in the State plan, commerce authorities in charge in the State Administration of Taxation and the National Development
and Reform Commission, Guangdong Branch Office, Tianjin and Shanghai Agencies of the General Administration of Customs, all customs
authorities directly under the General Administration of Customs, Finance Bureau and Development and Reform Commission in Xinjiang
Production and Construction Corps:
With the approval from the State Council, the export rebate rate for some commodities shall be adjusted and the prohibitive catalog
for processing trade shall be supplemented. And a circular is hereby given on relevant issues as follows:
Article 1
Adjusting the export rebate rate for some commodities
(1)
The export rebate for these commodities as follows shall be abolished:
(a)
All nonmetal minerals except salt and cement in Chapter 25 of Tax Regulations for Import and Export; coal, natural gas, paraffin,
asphalt, silicon, arsenic, rock materials, nonferrous metals and waste materials, etc;
(b)
Ceramic metal, 25 kinds of pesticides and their mesosomes, some ready-made leathers, lead-acid storage battery, mercury oxide battery,
etc.;
(c)
Fine goat hair, charcoal, railway sleeper, corkwood products, some preliminary ready-made wood products, etc.
Resort to Annex 1 for the exact commodities and their duty paragraph.
(2)
The export rebate rate for these commodities as follows shall be lowered:
(a)
The export rebate rate for rolled steels (142 duty paragraphs) shall be lowered to 8% from 11%;
(b)
The export rebate rate for ceramics, some ready-made leathers and cement and glass shall be respectively lowered to 8% and 11% from
13%;
(c)
The export rebate rate for some nonferrous metal materials shall respectively be lowered to 5%, 8% and 11% from 13%;
(d)
The export rebate rate for textile products, furniture, plastics, cigarette lighters, and some wood products shall be lowered to
11% from 13%;
(e)
The export rebate rate for non-mechanical-driven vehicles (barrows) and their components and parts shall be lowered to 13% from 17%.
Resort to Annex 2 for the exact commodities and their duty paragraphs.
(3)
The export rebate rate for some commodities shall be raised:
(a)
The export rebate rate for important technological equipments, some IT products and bio-medical products and some high-tech products
whose export are encouraged by the State industrial policy shall be raised to 17% from 13%;
(b)
The export rebate rate for some processed products using agricultural products as raw materials shall be raised to 13% from 5% or
11%.
Resort to Annex 3 for the exact commodities and their duty paragraphs.
(4)
Implementation Time
(a)
These aforesaid adjustments of export rebate rates shall come into force as of September 15, 2006 (based on the enter-out date).
(b)
With regard to the export contracts concluded before September 14, 2006 (including September 14, 2006), and the goods subject to
these aforesaid adjustments of export rebate rates which enter out before December 14, 2006 (including December 14, 2006), an export
enterprise may continue to go through the formalities of export rebate in accordance with the pre-adjustment export rebate rates.
However, an export enterprise shall, before September 30, 2006, go through the formalities of registration and record at the taxation
authorities in charge of export rebate, and if failing to do to so and entering out after December 15, 2006, the adjusted export
rebate rate shall be uniformly carried out.
The aforesaid export contract refers to an authentic and effective export contract in written form with a clear conclusion date, name
of commodity, unit price, quantity and amount etc. and with the signatures or seals of the representatives from both an export enterprise
and foreign businessmen, and in line with the provisions in the Contract Law and relevant laws and regulations, and a contract failing
to be in line with the prescriptions shall uniformly not be allowed to undergo the formalities of record, and an export contract,
once undergoing such formalities of record, shall uniformly bear no alteration. And the exact measures for administration of record
of an export contract shall be issued separately by the State Administration of Taxation.
Once an export enterprise is detected to seek illegal interests by altering, counterfeiting and signing inversely the date and other
means, the taxation authorities shall not handle the formalities of export rebate for it, and the rebated or excessively rebated
funds shall be recovered, and a fine shall be given in accordance with the provisions in relevant laws and regulations.
(c)
An long-term trade contract of coal export with an unchangeable price concluded before September 14, 2006 (including September 14,
2006) shall undergo the formalities of registration and record at the taxation authorities in charge of export rebate before September
30, 2006, and only after such formalities are undergone, may the contract hereof be fulfilled based on the pre-readjustment export
rebate rate.
With regard to the aforesaid enter-out date, the export date clearly indicated in the Declaration Bill for Export Goods (exclusively
used for export rebate) by the customs authorities shall apply.
Article 2
Supplementing the prohibitive catalog for processing trade
The commodities whose export rebates are abolished before and this time shall be enlisted in the prohibitive catalog for processing
trade. An import duty and import linkage tax shall be uniformly imposed on the commodities enlisted in the prohibitive catalog for
processing trade. The exact names and duty paragraphs of the commodities enlisted in the prohibitive catalog for processing trade
shall be separately issued by the Ministry of Commerce together with relevant authorities. This prescription shall come into force
as of September 15, 2006. And a processing trade business which is approved by the commerce authorities in charge and has undergone
the formalities of record at the customs authorities shall be allowed to be fulfilled within its period of validity in accordance
with the former import bonded policy, and if the re-export fails to be completed, no postponement shall be given, and it shall be
subject to the provisions on domestic sale of processing trade, and another announcement shall separately be issued by the Ministry
of Commerce together with the General Administration of Customs in accordance with the aforesaid spirit.
These aforesaid prescriptions shall also be applicable in export processing zones, bonded zones and other zones specially-supervised
by customs authorities.
This Circular is hereby given.
Ministry of Finance
National Development and Reform Commission
Ministry of Commerce
General Administration of Customs
State Administration of Taxation
September 14, 2006
|