Our previous memo (Ref No 2006/247 dated 15 September 2006) informed members that 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 Tax Rebate Rates for Certain Exporting 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.

On 29 September 2006, the Ministry of Finance, the General Administration of Customs and the State Administration of Taxation have jointly issued another circular “Supplementary Notice of Tax Rebate Rate Adjustment of Certain Exporting Products” [Caishui(2006)No. 145].

Such notice lists out the following:

l           Goods of which their original tax rebate rates are still applicable;

l           Goods to be excluded from the “List of goods with reduced tax rebate rates”;

l           Certain goods included on the “List of goods with reduced tax rebate rates” but their rates or tax codes have now been revised;

l           Goods to be added to the “List of goods with no tax rebates”;

l           Certain goods included on the “List of goods with increased tax rebate rates” but their names and tax codes have been revised.

The notice also includes an appendix listing out goods falling in the category of having no tax rebates prior to the promulgation of [Caishui(2006)No. 139].

For details of the notice, please refer to the following website:

http://www.mof.gov.cn/news/20060930_1556_16881.htm