The Chinese government is planning to release new catalogues of restricted and prohibited products for processing trade as early as the end of this year.

According to Ministry of Commerce Director-General Ms. Wang Qinhua, who spoke at a Hong Kong seminar on industrial relocation of PRD enterprises today, the new list of prohibited products for processing trade would be released by the end of this year. Entries on the list, around 500 in total, are primarily the products that no longer enjoy export tax refund, including minerals, animal products and chemicals. Exporting those products through processing trade will be prohibited, whereas importing will remain unaffected.

For the restricted catalogue, entries are those on the list of products with reduced export tax refund, announced earlier this year. Products range from textiles, apparels, bags and cosmetics. Ms. Wang emphasised that certain products with high-value may be excluded from the list, pending further discussion with relevant government departments and business organisations. The new list is intended to release next year. Appropriate grace period will be offered after the implementation of the new list.

For complete catalogue of items with reduced export tax refund, please refer to the following link:

http://www.mofcom.gov.cn/aarticle/b/e/200706/20070604800599.html