Customs duty exemption policies form a crucial component of China's import-export management system. Based on legal regulations, these policies classify and manage tax obligations for imported and exported goods. This article provides a detailed explanation of the definition, categories, and related codes of these policies to help businesses and individuals better understand and utilize them, facilitating smoother customs clearance and tax management.
I. Overview of Customs Duty Exemption Policies
Customs duty exemption policies refer to the classification of tax rates for imported and exported goods by China's customs authorities, in accordance with the Customs Law of the People's Republic of China and the Regulations of the People's Republic of China on Import and Export Duties , among other legal provisions. This classification system enables more efficient data collection and policy implementation by customs while providing clear guidelines for trade entities.
1. Classification of Duty Exemption Policies
The policies are divided into five main categories:
- Statutory Taxation (Code "101") : Goods subject to standard taxation according to laws and regulations.
- Statutory Duty Exemptions : Items eligible for exemption as specified by law.
- Special Duty Exemptions : Reductions or exemptions granted under specific circumstances or policies, categorized by region, purpose, trade nature, or enterprise type.
- Other Duty Exemptions (Code "299") : Exemptions not explicitly defined by law.
- Provisional Tax Rates (Code "998") : Temporary tax rates established by the State Council.
II. Detailed Explanation of Duty Exemption Categories
1. General Taxation for Import/Export Goods
Goods imported or exported through legal channels are subject to standard tax rates to ensure proper national revenue collection.
Code: 101
Scope: Goods not covered by other special exemption policies.
2. Import Materials for Free Assistance
Materials provided as free aid by foreign governments or international organizations to China, excluding other forms of donations or exchanges.
Code: 201
Scope: Materials and equipment provided for large-scale economic and technical assistance projects.
3. Other Statutory Duty Exemptions for Import/Export Goods
Covers exemption items not included in the free assistance category.
Code: 299
Scope: Items with no commercial value, goods returned for special reasons, etc.
4. Self-use Materials Imported by Special Zones and Export Goods
Refers specifically to materials eligible for duty reductions or exemptions in China's special economic zones and pilot areas according to national regulations.
Code: 301
Scope: Self-use materials imported within state-approved quotas and export products from designated areas.
5. Self-use Materials Imported by Bonded Zones
Applies to equipment and materials imported by enterprises within bonded zones for their operational needs.
Code: 307
Scope: Primarily materials used for infrastructure construction.
6. Export Goods from Other Special Policy Areas
Includes export products eligible for duty exemptions in other specially designated policy areas.
Code: 399
Scope: Export products manufactured in economic and technological development zones and high-tech industrial development zones.
7. Scientific and Educational Materials Imported by Research Institutions and Schools
Special materials imported to promote scientific research and education.
Code: 401
Scope: Scientific research and educational materials that comply with relevant policies.
8. Equipment Imported for Enterprise Technological Transformation
Encourages enterprises to import equipment for technological upgrades and improvements.
Code: 403
Scope: Equipment required for technological transformation and comprehensive utilization projects.
9. Materials Imported for National Major Projects
Supports materials needed for major construction projects that drive national economic development.
Code: 406
Scope: Equipment related to major projects approved by the State Council.
III. Conclusion and Outlook
Through this detailed explanation of China's customs duty exemption policies and their corresponding codes, businesses and individuals engaged in international trade can better identify applicable tax policies, facilitating smoother operational procedures. Staying informed about customs policy updates is crucial for market adaptation and business growth. Emphasizing compliance and monitoring policy changes can significantly reduce unnecessary tax expenditures and enhance international trade efficiency.
