On a routine day at China's customs office, officer Li Ming was reviewing duty exemption and reduction codes for imported goods. Seeking to better understand how import/export commodities are classified, he began studying relevant materials.
The duty exemption/reduction codes serve as crucial classification tools for China's customs administration, facilitating management, statistics, and automated processing. These codes not only contain information about tax treatment for various commodities but also reflect national policy priorities.
Five Major Categories
Li learned that the classification system comprises five main categories:
1. Statutory taxation - Standard duty rates applied according to national laws and regulations
2. Statutory duty reduction/exemption - Mandated by law for specific cases
3. Special duty reduction/exemption - Further divided by region, purpose, and trade nature
4. Other reductions/exemptions - Miscellaneous categories
5. Provisional tariff rates - Temporary adjustments to standard rates
Key Code Classifications
The most common classification, "General Taxation for Import/Export Goods" (Code 101) , applies standard duty rates to regular commercial shipments. Li noted that creating a reference table for these cases would improve work efficiency.
"Gratuitous Aid Materials" (Code 201) covers humanitarian donations from foreign governments or international organizations. Li observed how these non-commercial imports foster international relations.
"Other Statutory Duty-Reduced/Exempt Goods" (Code 299) encompasses various legally mandated exemptions beyond aid materials, demonstrating customs' broad regulatory role.
Special Economic Policies
Li examined several region-specific codes:
"Special Economic Zone Imports" (Code 301) supports enterprises in Shenzhen, Zhuhai and other special zones, facilitating their international business development.
"Bonded Zone Imports" (Code 307) provides duty benefits for businesses in designated bonded areas.
Support for Key Sectors
The customs system includes numerous codes supporting national priorities:
"Educational/Research Imports" (Code 401) promotes academic and technological advancement
"Enterprise Technology Upgrade Imports" (Code 403) encourages industrial modernization
"National Major Project Imports" (Code 406) facilitates strategic infrastructure development
"Transport Infrastructure Equipment" (Code 412) supports China's expanding networks of roads, ports, and airports
Social Welfare Provisions
Li noted several socially conscious classifications:
"Disabled Persons' Special Equipment" (Code 413) ensures access to necessary tools and products
"Deep-Sea Fishing Products" (Code 417) supports the domestic fishing industry
Economic Development Tools
The system also includes codes designed to stimulate growth:
"Encouraged Foreign/ Domestic Investment Projects" (Code 789) attracts capital and technology
"State Council Special Approvals" (Code 898) and "Exceptional Exemptions" (Code 999) provide flexibility for unique cases
"Provisional Tariff Rate Goods" (Code 998) allows temporary adjustments to standard rates
After thoroughly reviewing the materials, Li gained new appreciation for how these classifications support national development strategies while ensuring proper revenue collection. He resolved to apply this knowledge diligently in his work, recognizing how each customs decision contributes to broader economic and social objectives.
