Customs duty exemption categories classify preferential tax policies in customs administration, providing data support and management basis for clearance systems. Familiarity with these categories and their corresponding codes can significantly enhance the efficiency and accuracy of corporate customs declarations.
I. Classification of Duty Exemption Categories
Customs duty exemptions are primarily divided into five categories: statutory taxation, statutory duty exemptions, specific duty exemptions, other exemptions, and provisional tariff rates. The specific duty exemptions category is further subdivided to account for regional policies, intended use, trade nature, and enterprise characteristics.
II. Code Structure
Each exemption category is represented by a three-digit code where the first digit indicates the classification group, while the second and third digits specify the sequential number within that category.
III. Detailed Exemption Categories and Codes
1. General Taxation
Definition:
Goods subject to standard taxation under current laws and regulations.
Code: 101
Applicability: All standard taxed import/export goods.
2. Gratuitous Aid
Definition:
Includes non-repayable assistance from foreign governments and international organizations.
Code: 201
Applicability: Materials donated under bilateral agreements, UN and other international organizations' aid supplies.
3. Other Statutory Exemptions
Definition:
Goods exempted by law beyond gratuitous aid.
Code: 299
Applicability: Replacement goods without cost, commercial-value-free promotional items.
4. Self-use Materials in Special Zones
Definition:
Materials imported for self-use in designated economic zones.
Code: 301
Applicability: Enterprise self-use imports in special economic zones and privileged areas.
5. Bonded Zones
Definition:
Special tax treatment for self-use materials in bonded zones.
Code: 307
Applicability: Infrastructure materials and enterprise self-use goods in bonded zones.
6. Export Goods from Special Policy Areas
Definition:
Goods from economic/technological development zones with special policies.
Code: 399
Applicability: Export products from enterprises in designated zones.
7. Scientific/Educational Articles
Definition:
Special imports for research and education.
Code: 401
Applicability: Imports for research institutions and educational facilities.
8. Technical Renovation Imports
Definition:
Equipment and technology for industrial upgrades.
Code: 403
Applicability: Imported equipment under technical renovation projects.
9. Major National Project Imports
Definition:
Essential equipment for state-approved major projects.
Code: 406
Applicability: Equipment/materials for State Council-approved initiatives.
10. Infrastructure Equipment
Definition:
Imports for transportation/communication infrastructure.
Code: 412
Applicability: Relevant equipment for infrastructure development.
11. Disabled Persons' Articles
Definition:
Special equipment supporting welfare for disabled persons.
Code: 413
Applicability: Imported special equipment for disabled persons.
12. Deep-sea Fishery Products
Definition:
Aquatic products from deep-sea fishing.
Code: 417
Applicability: Products from certified deep-sea fishing enterprises.
13. Localized Vehicles/Equipment
Definition:
Designated enterprises' compliant parts and equipment.
Code: 418
Applicability: Key component sets imported by authorized manufacturers.
14. Offshore Oil Exploration
Definition:
Special equipment for offshore oil exploration.
Code: 606
Applicability: Specialized offshore exploration equipment.
15. Onshore Oil Development
Definition:
Equipment for designated onshore oil projects.
Code: 608
Applicability: Essential development equipment and materials.
16. Disaster Relief Donations
Definition:
Duty-free imports for disaster relief.
Code: 801
Applicability: Qualified disaster relief materials.
17. Processing Trade Equipment
Definition:
Free production equipment provided by foreign partners.
Code: 501
Applicability: Processing trade equipment supplied without charge.
18. Processing/Compensation Trade
Definition:
Materials and finished goods for processing/assembly.
Code: 502
Applicability: Imported materials and exported products under processing agreements.
19. Import Processing Materials
Definition:
Imported materials/components for export production.
Code: 503
Applicability: Materials imported by trading companies for export manufacturing.
20. Border Small-scale Trade
Definition:
Small-scale cross-border trade transactions.
Code: 506
Applicability: Goods traded through designated land border ports.
21. Sino-foreign Joint Ventures
Definition:
Imports/exports of joint venture enterprises.
Code: 601
Applicability: Production equipment and finished goods within legal scope.
Conclusion
Customs duty exemption codes provide enterprises with clear classification standards for effective import/export tax management. The systematic pairing of codes with specific goods categories and applicable policies facilitates international trade operations. Mastery of these classifications enables businesses to optimize customs clearance processes, enhance compliance, and reduce unnecessary costs - ultimately improving economic efficiency in global trade operations.