| Circular of the General Administration of Customs and National Development and Reform Commission on Issues Concerning Examination and Approval of Tax Exemption Confirmation for Domestic and Foreign-Invested Projects under Encouragement |
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| Monday,November 02,2009 Posted: 21:49 BJT(49 GMT) |
| From:www.fdi.gov.cn Article type:Reproduced |
Shu Shui Fa [2009] No.290
Guangdong Sub-Administration of Customs, Customs directly under the General Administration of Customs (GAC), development and reform commissions and commission for economic relations and trade of provinces, autonomous regions, municipalities directly under the Central Government and separately planning cities, and the Development and Reform Commission of Xinjiang Production and Construction Corp.,
For the purpose of implementing the Circular of the State Council on Adjustment of the Tax Policies for Import of Equipment (Guo Fa [1997] No.37, hereinafter referred to as the Circular), improving work on examination and approval of investment projects under encouragement, and enhancing cooperation between Customs directly under the GAC and the investment authorities of provinces, autonomous regions, municipalities directly under the Central Government and separately planning cities (hereinafter referred to as the project examination and approval authorities at the provincial level), according to the plan of the State Council that the Guiding Catalogue for Industrial Structure Adjustment and the Guiding Catalogue for Foreign Investment Industries shall be formulated under the arrangement of the National Development and Reform Commission (NDRC), the relevant issues are hereby notified as follows:
I. The project examination and approval authorities at the provincial level shall be responsible for examining whether an investment project is applicable to the entry of industries under encouragement when giving approval to the domestic or foreign-invested project and issuing the Project Confirmation Certificate. As the examination and approval authorities for tax reduction and exemption for import of equipment under the domestic and foreign-invested projects under encouragement, the Customs shall be responsible for assisting the project examination and approval authorities at the provincial level and fully executing state policies on import tax.
II. The Customs directly under the GAC (or its authorized sub-customs) in the place where the domestic or foreign-invested project is located shall accept the application for tax reduction and exemption for the relevant investment project on the strength of the Project Confirmation Certificate issued by the project examination and approval authorities at the provincial level. If the Customs directly under the GAC holds the expression of the contents of the entry of industries is unclear and may cause disputes or it is obviously improper to apply an entry of industries under encouragement, it shall proactively connect with the project examination and approval authorities at the provincial level. If the project examination and approval authorities at the provincial level believe the applicable entry of industries is correct, it shall report to the NDRC for confirmation and make a copy of the submitted document to the Customs directly under the GAC in the place where the project is located.
Before the NDRC giving its reply, the Customs may not accept the application for tax reduction and exemption for the investment project concerned temporarily. If the company undertaking the said project applies for release of the goods against guarantees for tax, the Customs may accept the said application.
When replying the project examination and approval authorities at the provincial level about its opinions on whether any entry of industries under encouragement is applicable for the investment project concerned, the NDRC shall make a copy of the opinion for the Customs directly under the GAC in the place where the project is located. The Customs shall decide whether to handle the relevant procedures for filing, examination and approval of the domestic or foreign-invested project concerned according to the confirmation opinion of the NDRC.
III. Where the Customs has handled the tax reduction and exemption filing and approval procedures for any domestic or foreign-invested project on the strength of the Project Confirmation Certificate issued by the examination and approval authorities at the provincial level, while the auditing department or the Customs has any question about the applicable entry of industries under encouragement for the investment project concerned after review, such issues shall be handled according to the relevant provisions of Article 2 herein.
If the entry of industries under encouragement is inapplicable for the investment project concerned after review of the NDRC, the Customs shall stop to accept the application for tax reduction and exemption for the investment project concerned according to the confirmation opinion of the NDRC, and meanwhile impose tax on the imported goods which tax has been reduced or exempted according to the relevant laws and regulations.
IV. When handling the tax reduction and exemption filing and approval procedures for any domestic or foreign-invested project on the strength of the Project Confirmation Certificate issued by the examination and approval authorities at the provincial level, the Customs shall enhance its examination on whether the entry of industries under encouragement is applicable; and if it has any doubt, it shall communicate with the examination and approval authorities at the provincial level in a timely manner to avoid putting forward any doubt on the applicability after the filing and approval procedures for the investment project has been finished.
V. The Customs shall comply with the principles prescribed in Article 1 to 4 herein when encountering such issues as examination and approval beyond power, divided projects and other violations of provisions when handling the tax reduction and exemption filing and approval procedures for any domestic or foreign-invested project on the strength of the Project Confirmation Certificate issued by the examination and approval authorities at the provincial level.
VI. Where any examination and approval authorities at the provincial level often makes mistakes of use of applicable entry of industries under encouragement, divides projects, approves projects beyond its power and jurisdiction or decentralizes its power of issuance of the Project Confirmation Certificate in violation of provisions, the NDRC shall suspend the power of the examination and approval authorities at the provincial level and decide whether to resume its power according to its rectification.
VII. The Project Confirmation Certificates that shall be issued by other departments under the State Council and other examination and approval authorities at the provincial level shall be handled by reference with the principles prescribed herein.
General Administration of Customs of the PRC
National Development and Reform Commission of the PRC
July 7, 2009
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