In international trade, customs duty exemption codes serve as crucial tools for classifying and managing import/export goods. These codes not only facilitate customs administration in duty collection and exemption management but also provide essential data support for automated customs declaration systems and Electronic Data Interchange (EDI) systems. They enable statistical analysis of duty exemptions and serve as important references for customs tariff databases. This article systematically examines these codes to provide a comprehensive understanding of this regulatory framework.
I. Classification of Duty Exemption Types
Duty exemptions are primarily categorized into five types:
- Statutory taxation
- Statutory duty exemptions
- Special duty exemptions
- Other exemptions
- Temporary tariff rates
Special duty exemptions can be further divided into four subcategories:
- Region-based tax policies
- Purpose-based tax policies
- Trade-type-based tax policies
- Enterprise-type and funding-source-based tax policies
II. Code Structure
Duty exemption codes consist of three digits: the first digit indicates the category, while the second and third digits represent the sequential number of the specific exemption item within that category.
III. Detailed Explanation of Duty Exemption Types
1. General Taxation for Import/Export Goods
Definition:
Goods subject to tariffs, VAT, and other taxes according to relevant laws and regulations.
Code: 101
Applicability: All import/export goods subject to standard taxation unless otherwise specified by other exemption provisions.
2. Gratis Aid Import/Export Materials
Definition:
Materials provided as gratuitous aid or gifts by foreign governments or international organizations to China, or China's aid to other countries.
Code: 201
Applicability: Eligible gratis aid or gift materials.
3. Other Statutorily Exempt Import/Export Goods
Definition:
Import/export goods exempt from duties under other statutory provisions besides gratis aid.
Code: 299
Applicability: Includes compensatory materials without cost, non-commercial value advertising items, and other similar cases.
4. Self-use Materials Imported by Special Zones and Export Goods
Definition:
Materials imported for self-use or goods exported from special economic zones according to nationally stipulated duty-free policies.
Code: 301
Applicability: Covers Shenzhen, Zhuhai, Shantou, Xiamen, Hainan, and other special policy zones.
5. Bonded Zone Self-use Import Materials
Definition:
Materials imported for self-use in bonded zones under separate duty exemption policies.
Code: 307
Applicability: Materials used for infrastructure construction in bonded zones.
6. Export Goods from Other Special Policy Zones
Definition:
Export goods from economic/technological development zones and high-tech zones.
Code: 399
Applicability: Export products manufactured by enterprises in relevant zones.
7. Scientific/Educational Imports by Research Institutions and Schools
Definition:
Scientific and educational imports by research institutions and schools to promote scientific education.
Code: 401
Applicability: Qualified research institutions and educational organizations.
8. Enterprise Technological Transformation Import Goods
Definition:
Imported goods to encourage technology/equipment introduction and enterprise upgrades.
Code: 403
Applicability: Goods imported for relevant technological transformation projects.
9. National Major Project Import Goods
Definition:
Equipment required for major construction projects approved by the State Council.
Code: 406
Applicability: Equipment and materials listed in national major project catalogs.
10. Infrastructure Construction Import Equipment
Definition:
Equipment for communications, ports, railways, highways, and airport construction.
Code: 412
Applicability: Equipment related to infrastructure construction.
11. Special Products and Equipment for Disabled Persons
Definition:
Equipment supporting rehabilitation of disabled persons and export products.
Code: 413
Applicability: Duty-free products produced by relevant social organizations and enterprises.
12. Deep-sea Self-caught Aquatic Products
Definition:
Aquatic products caught by qualified deep-sea fishing enterprises.
Code: 417
Applicability: Aquatic products caught by certified deep-sea fishing enterprises.
13. National Designated Automobile and Camera Enterprises Importing Components
Definition:
Key components imported by nationally designated enterprises.
Code: 418
Applicability: Equipment imported by designated manufacturing enterprises.
14. Offshore and Onshore Oil Exploration/Development Import Goods
Definition:
Equipment for oil and gas exploration and development.
Offshore: 606 , Onshore: 608
Applicability: Qualified oil and gas exploration/development projects.
15. Disaster Relief Donation Import Materials
Definition:
Materials donated by foreign countries directly for disaster relief.
Code: 801
Applicability: Materials meeting duty-free approval conditions for donations.
16. Processing Trade and Compensation Trade Import Equipment
Definition:
Includes equipment provided gratis by foreign investors.
Processing Equipment: 501 , Incoming Processing: 502 , Import Processing: 503
Applicability: Equipment required for relevant processing and compensation trade projects.
17. Border Small Trade Import Goods
Definition:
Border trade goods imported through designated ports.
Code: 506
Applicability: Border area trade operations.
18. Wholly Foreign-owned and Joint Venture Enterprise Import/Export Goods
Definition:
Import/export business within foreign enterprises' investment scope.
Joint Venture: 601 , Cooperation: 602 , Foreign-owned: 603
Applicability: Investment and exports by various foreign enterprises.
19. Loan Project Import Equipment
Definition:
Projects utilizing loans from international financial institutions.
Code: 609
Applicability: Imported equipment under loan agreement execution.
20. Nationally Encouraged Domestic/Foreign Investment Project Import Equipment
Definition:
Imported equipment for investment projects encouraged by the state.
Code: 789
Applicability: Imported equipment for projects qualifying under national encouragement policies.
21. State Council Specially Approved Duty-free Import/Export Goods
Definition:
Goods with duty exemptions approved by the State Council.
Code: 898
Applicability: Other specially approved duty-free goods.
22. Exceptional Duty-free Import/Export Goods
Definition:
Goods not classifiable under the above categories.
Code: 999
23. Import/Export Goods Subject to Internal Temporary Tariff Rates
Definition:
Goods taxed according to stipulated internal temporary tariff rates.
Code: 998
By understanding these customs duty exemption codes in detail, import/export enterprises can better navigate policies and their applications, ensuring optimal utilization of duty exemption benefits during customs declarations to enhance financial and tax management.
