On 6 February, the General Administration of Customs (GAC) promulgated the Administrative Measures of the Customs of the People's Republic of China for the Duty-free Exemption of Imported Goods in the Guangdong-Macao In-Depth Cooperation Zone in Hengqin (hereinafter referred to as the "Measures"), which came into force on the date of the official closure and operation of the Cooperation Zone. The document statesDuty-free importers are exempt from import duties, import value-added tax and consumption tax on machinery and equipment and infrastructure materials imported through ports open to the public between the Guangdong-Macao In-Depth Cooperation Zone in Hengqin and the Macao Special Administrative Region of the People's Republic of China.
The following is a brief interpretation of the Measures in the form of questions and answers.
Q: What is the background of the formulation of the Measures?
A:On 4 January 2024, the Ministry of Finance, the General Administration of Customs and the State Administration of Taxation jointly issued the Notice on the Import and Export Tax Policies for Goods in the Guangdong-Macao In-Depth Cooperation Zone in Hengqin (Cai Guan Shui 2024 No. 1, hereinafter referred to as the "Notice"), which clarifies the import of machinery and equipment (excluding transportation equipment such as aircraft, automobiles, ships and yachts), molds and spare parts for the maintenance of the above-mentioned commodities, and infrastructure materials (excluding interior decoration and decoration materials) imported by duty-free importers in the Guangdong-Macao In-Depth Cooperation Zone in Hengqin. Exemption from import duties, import VAT and consumption tax. In order to standardize management and ensure the effective implementation of policies, the General Administration of Customs has formulated the Measures.
Q: Who can enjoy the tax exemption policy?
A:The scope of duty-free import entities in the cooperation zone includes enterprises registered in the cooperation zone and with independent legal personality, administrative organs, public institutions and statutory bodies in the cooperation zone, as well as social organizations and private non-enterprise units registered in the cooperation zone.
The specific list of duty-free import entities shall be determined and dynamically adjusted by the Executive Committee of the Guangdong-Macao In-Depth Cooperation Zone in Hengqin (hereinafter referred to as the Executive Committee of the Cooperation Zone) in conjunction with Gongbei Customs and other relevant departments.
Q: What goods are exempt from duty?
A:The self-use machinery, equipment (excluding aircraft, automobiles, ships and yachts and other transportation equipment), molds and spare parts for the maintenance of the above-mentioned commodities referred to in the Measures include Article 1 of the Import and Export Tariff of the People's Republic of China (2023).
Eight. Ten. Forty, eighty.
Commodities under Chapter 5 and Chapter 90, as well as Chapter 95 of Tariff Heading 9508, except for the commodities in the list of non-tax-exempt commodities in the annex to the Notice.
The self-use infrastructure materials mentioned in the Measures do not include interior decoration and decoration materials.
The import duty-free policy is not applicable to the four categories of goods mentioned in Article 5 of the Circular.
Q: What information system does the duty-free importer handle business through?
A:Duty-free importers shall handle the establishment and alteration of duty-free goods ledgers, transfer to other entities, sales to individuals, early release of supervision, loan mortgage and other businesses through the public service platform of the smart port of the cooperation zone (hereinafter referred to as the public service platform); Through the China International ** Single Window, go through the customs clearance procedures for duty-free goods.
Q: How can a duty-free importer set up a duty-free goods account?
A:In order to ensure convenient customs clearance, the Measures clearly implement electronic ledger management for duty-free goods in the cooperation zone.
Before declaring the import of duty-free goods, the duty-free import entity shall file with the customs the commodity information and relevant explanatory materials such as the commodity name, commodity number, specification and model, ** origin and import quantity of the relevant machinery and equipment or infrastructure materials through the public service platform, and establish a duty-free goods ledger. Among them, in addition to the above-mentioned commodity information and explanatory materials, the duty-free import entity shall also submit the construction permit or other supporting materials issued by the executive committee of the cooperation zone when approving the infrastructure project.
Q: What is the purpose of the tax exemption checklist?
A:In order to reduce the burden of tax-exempt entities and accurately record the changes in the ledger of duty-free goods, the tax-free verification list is enabled in the cooperation zone, and the business of carrying forward and infrastructure materials in the tax-free cargo area is handled by filling in the tax-free verification list, and the management operations such as the entry and exit of the ledger are completed.
Q: How to fill in the filing list of imported goods when importing duty-free goods?
A:The duty-free import entity shall use the record list of imported goods to declare the import of duty-free goods, and the "customs at the place of declaration" and "entry customs" shall be filled in as Hengqin Customs (**5795); According to the type of ledger "nature of levy and exemption", it is reported as "self-use equipment of the Guangdong-Macao In-Depth Cooperation Zone in Hengqin" (*481) or "infrastructure materials of the Guangdong-Macao In-Depth Cooperation Zone in Hengqin" (*482); "Consumption and use unit" fills in the name of the tax-free import entity. The contents of other columns in the record list of imported goods shall be consistent with the contents of the relevant columns of the corresponding verification list confirmed by the customs.
Q: Can duty-free goods be transferred to other entities in the zone during the period of customs supervision?
A:OK. During the period of customs supervision, if the duty-free importer transfers the duty-free goods in the zone, it shall be handled in accordance with the following provisions:
1. If the duty-free goods are transferred to other duty-free importers in the zone, the transfer-in and transfer-out duty-free importers shall fill in the verification list respectively, and the supervision period of the duty-free goods shall be calculated consecutively, and the follow-up supervision of the duty-free goods shall continue to be carried out during the remaining supervision period, and no additional tax shall be paid.
2. If the duty-free goods are transferred to other entities other than the duty-free import entities in the zone, the tax-exempt importers who transfer the duty-free goods in the zone shall fill in the verification list and pay the corresponding taxes with reference to the relevant provisions on the import of tax-exempt goods.
Q: During the period of customs supervision, do the infrastructure materials that have been consumed still need to be subject to follow-up management as duty-free goods?
A:The Measures make it clear that within the period of customs supervision, for the infrastructure materials (excluding reusable materials) that have been verified and consumed, with the approval of the customs, the follow-up management will no longer be implemented according to the tax-exempt goods, and there is no need to pay additional taxes.
Q: What are the four types of measure goods?
A:The four types of goods mentioned in the "Notice" refer to the "first-line" imports involving the implementation of tariff quota management, ** relief measures, suspension of tariff concession obligations, additional tariff measures, and the implementation of additional tariff measures for the imposition of retaliatory tariffs (Implementation No.
The first and second batches of goods subject to additional tariffs on the United States are excluded, and those within the exclusion period).
*:Customs.