Mainland to Adjust Export Tax Rebate Rates
The Ministry of Finance, the State Development and Reform Commission, the Ministry of Commerce, the General Administration of Customs and the State Administration of Taxation have jointly issued a circular “Adjustment of the Export Tax Rebate Rates for Certain Goods and Revision of the List of Prohibited Category of Processing Trade” [Caishui(2006)No. 139]. Starting 15 September 2006, export tax rebate rates for certain goods will be adjusted whilst the revised list of prohibited category of processing trade will be effective.
According to the Notice, the export tax rebate rates for the following goods will be reduced:
|
Goods |
Export Rebate Rate Before Adjustment (%) |
Export Rebate Rate After Adjustment (%) |
|
Steel（142 tax codes） |
11 |
8 |
|
Ceramics, some finished leather, cement and glass products |
13 |
8 and 11 |
|
Certain non-ferrous metals |
13 |
5, 8 and 11 |
|
Textile, furniture, plastics, lighters and certain wood products |
13 |
11 |
|
Trolleys and parts |
17 |
13 |
Export tax rebates on the following goods will be abolished:
l All non-metallic minerals listed under Chapter 25 of the Import and Export Tariff Rules (進出口稅則第25章) except salt and cement; coal; natural gas, paraffin, asphalt, silicon, arsenic, stone materials, nonferrous metal and scraps.
l metallic ceramics, 25 kinds of pesticides, some finished leather, lead-acid batteries, mercury-oxide batteries.
l fine goat wool, fuel wood, wood sleepers, corks and some primary wood products.
The export tax rebate rates for the following goods will be raised:
|
Goods |
Export Rebate Rate Before Adjustment (%) |
Export Rebate Rate After Adjustment (%) |
|
Major technical equipments, some IT, bio-medical and high-tech products listed under Mainland’s encouragement category |
13 |
17 |
|
Some processed agricultural products |
5 and 11 |
13 |
For export contracts signed on or before 14 September 2006, the old export rebate rates will be applied provided that the goods are exported/declared at the Customs on or before 14 December 2006. Nevertheless, enterprises should register the export contracts at the local export rebate authority before 30 September 2006. For goods exported under contracts that have not registered by the stipulated date or goods exported on or after 15 December 2006, the revised export tax rebate rates shall be applied.
According to the Notice, goods that are already on or have been added to the list of zero export rebates will be included in the list of prohibited category of processing trade. Goods fall under such list are subject to import tariff and other import-related taxes.
This Notice will be effective from 15 September 2006. Processing activities approved by the trade administration authority and registered with the Customs prior to the effective date of this Notice shall be allowed to complete within the specified time limit of the processing trade contracts, and the original tax rebate policy will be applied. However, no application for extension of the deadline will be accepted. Goods exported after the deadline will be subject to rules for goods sold on the domestic market. This requirement is also applicable to export processing zone and bonded areas.
For details of the Notice, members may visit the following website:
http://www.mof.gov.cn/news/20060915_1556_16612.htm
