December 24 2020

New Rules on Tax Reduction and Exemption for Imports and Exports Released

China - Announcement by General Administration of Customs (GAC)

The General Administration of Customs released on December 22, 2020 the Administrative Measures on Reduction and Exemption of Tax by Customs of the People's Republic of China for Imports and Exports, to be effective from March 1, 2021. The 2008 version of the Measures will be simultaneously abolished.

The Measures apply to the handling of matters relating to the application for reduction or exemption of tariffs and import taxes on imported and exported goods. An applicant shall apply to the competent customs for handling of the procedures relating to the review and confirmation of its eligibility for the tax reduction or exemption, the guarantee of taxes and the follow-up management of goods that qualify for the tax reduction or exemption. According to the Measures, the supervision period for imported goods that qualify for tax exemption or exemption shall be eight years for ships and aircrafts, six years for motor vehicles and three years for other goods.