The General Administration of Customs ("GAC") released on December 6, 2022 the Announcement of Matters concerning the Implementation of the Catalogue of Encouraged Industries for Foreign Investment (2022 Version), to be effective on January 1, 2023.
Imports of qualified self-use equipment and related technologies, accessories and spare parts within the total investment amount of foreign-invested projects included the Catalogue will be exempted from the tariffs from January 1, 2023, while the import value-added tax ("VAT") will be levied on the imports according to applicable rules, according to the Announcement, which also clarified that for those foreign-invested projects that are approved, verified or filed prior to January 1, 2023 and fall within the scope of the Catalogue, the project units may apply for tax reduction and exemption as long as they have obtained the relevant documents issued by the competent departments before 2024.