The Ministry of Finance, General Administration of Customs and State Taxation Administration jointly released on January 3, 2024 the Circular on the Tax Policies for Entry and Exit of Goods in the Guangdong-Macao In-Depth Cooperation Zone in Hengqin (Hengqin Cooperation Zone) and the Circular on the Tax Policies for Personal Baggage and Delivery Items in the Guangdong-Macao In-Depth Cooperation Zone in Hengqin.
According to the documents, there would be a "first line" created between the Hengqin Cooperation Zone and the Macao Special Administrative Region, and the "second line" between the Hengqin Cooperation Zone and the territory of the mainland China. For qualified goods entering into the Hengqin Cooperation Zone through the "first line", the tax would be exempted, while goods falling under other circumstances would be subject to the bonded policies. For goods produced by an enterprise in the Hengqin Cooperation Zone that contain imported materials or parts and create added value of 30 percent or above after being processed in the Zone, their entry into the mainland through the "second line" would be waived from the import duties, but the import value added tax and consumption would be levied as required. Goods entering into the Hengqin Cooperation Zone from the mainland through the "second line" would be regarded as exports and are eligible for refunds of value added tax and consumption tax according to rules. The document also calls for tightening the supervision.
Source: Announcement of the State Taxation Administration