Compilation of Import Export Policies of May 2022

2022 

To facilitate software and IC enterprises to promptly understand the applicable preferential tax and fee policies, the State Taxation Administration sorted out such procedures and created instructions on 21 policies by covering their beneficiaries, benefits, applicable conditions, and the policy basis.

Preferential Tax and Fee Policies for Software Enterprises:

1. Immediate refund of excess VAT on software products upon its payment. 

2. Periodic reduction and exemption of enterprise income tax on state-encouraged software enterprises. 

3. Reduction and exemption of enterprise income tax on state-encouraged key software enterprises. 

4. The enterprise income tax policy for the VAT refunded upon its payment used by software enterprises in R&D and reproduction expansion. 

5. Deduction of employee training expenses of software enterprises that meet the conditions before tax payment according to the amount actually incurred. 

7. Shorter depreciation and amortization period for software purchased by enterprises.

Preferential Tax and Fee Policies for IC Enterprises:

1. VAT credit refund of enterprise VAT for major IC projects. 

2. Deduction of end-of-period VAT credit refunded to IC enterprises in the taxation calculation basis for city maintenance and construction tax, educational surcharges, and local educational surcharges. 

3. Installments for import VAT on new equipment imported by enterprises undertaking major IC projects. 

4. Periodic reduction and exemption of enterprise income tax on IC enterprises producing ICs with line widths less than 0.8 µm. 

5. Periodic reduction and exemption of enterprise income tax on IC enterprises producing ICs with line widths less than 0.25 µm. 

6. Periodic reduction and exemption of enterprise income tax on IC enterprises with investment more than 8 billion yuan. 

7. Periodic reduction and exemption of enterprise income tax on IC enterprises or projects with investment more than 15 billion yuan. 

8. Periodic reduction and exemption of enterprise income tax on state-encouraged IC enterprises or projects producing ICs with line widths less than 28 nm. 

9. Periodic reduction and exemption of enterprise income tax on state-encouraged IC enterprises or projects producing ICs with line widths less than 65 nm. 

10. Periodic reduction and exemption of enterprise income tax on state-encouraged IC enterprises or projects producing ICs with line widths less than 130 nm. 

11. Extending loss carryover period for state-encouraged IC enterprises or projects producing ICs with line widths less than 130 nm. 

12. Periodic reduction and exemption of enterprise income tax on state-encouraged design, equipment, material, packaging, and test enterprises in the IC industry. 

13. Reduction and exemption of enterprise income tax on state-encouraged key IC design enterprises. 

14. Deduction of employee training expenses of IC design enterprises before tax payment according to the amount actually incurred. 

15. Shorter depreciation period for equipment produced by IC production enterprises.

http://www.chinatax.gov.cn/chinatax/n810341/n810825/c101434/c5175486/content.html

As issued by the General Administration of Customs (GAC) on May 13, 2022, according to the amendments to the HS Nomenclature 2022 Edition published by the World Customs Organization, the Chinese mainland has reached an agreement respectively with Hong Kong and Macao on the modification of product names and codes in the product specific rules (PSR) under the Mainland and Hong Kong Closer Economic Partnership Arrangement and the Mainland and Macao Closer Economic Partnership Arrangement (hereinafter referred to as the “CEPAs with Hong Kong and Macao”) from the HS Nomenclature 2017 Edition to the 2022 Edition. As specified by Article III of the annex of the GAC Announcements No. 213 and No. 214 of 2018, the List of the Modified Version of the Product Specific Rules under CEPAs with Hong Kong and Macao is hereby published.

http://www.customs.gov.cn/customs/302249/2480148/4344754/index.html

This Announcement shall come into force as of May 16, 2022. Consignees and consignors of import and export goods or their agents shall continue following the GAC Announcement No. 34 of 2021 to go through customs declaration formalities for goods under CEPAs with Hong Kong and Macao. Consignors of export goods or their agents or visa agencies shall follow the modified version of origin criteria to apply for and issue certificates of origin under CEPAs with Hong Kong and Macao.

1. Relieving poverty and overcoming difficulties for all kinds of market players in all means;

2. Promoting work resumption in a thorough and orderly manner;

a) Strengthening the support and services for enterprises’ work resumption; Supporting enterprises in the manufacturing industry, such as automobiles, IC, and biopharmaceuticals, so that they can lead upstream and downstream enterprises in the entire industry chains and supply chains to resume work together and enhance enterprises’ capacity-achieving rate steadily.

b) Unblocking logistics and transportation channels inside and outside China. Accelerating the promotion and use of travel permits recognized throughout the country, enhancing the operation efficiency of cross-province transit points, promoting logistics without contact, and improving the traffic efficiency of freight transport; implementing epidemic prevention and production supporting measures strictly at ports and airports, optimizing cargo pick-up and quarantine procedures at ports, and guaranteeing the orderly operation of industry chains, supply chains, and shipping logistics.

3. Taking various measures at the same time to stabilize foreign investment and foreign trade;

4. Promoting consumption vigorously to speed up its resumption;

5. Fulfilling the critical role of investment fully;

6. Strengthening the safeguard of all kinds of resources and elements;

7. Enhancing people's livelihood security effectively;

8. Guaranteeing the safe and orderly operation of the city and optimizing the business environment.

https://www.shanghai.gov.cn/nw12344/20220529/c931ca8e68cd434293e122204c61ecc8.html

The GAC officially issued a series of standards related to the Rules for the Inspection of Packaging of Dangerous Goods for Export (SN/T0370-2021) in the Announcement No. 97 of 2021 (Announcement on Issuing 83 Industry Standards) on November 22, 2021. The series of standards include three parts, the general rules, the performance test, and the use appraisal, and shall come into effect as of June 1, 2022.

http://www.customs.gov.cn/customs/302249/302266/302267/4020611/index.html

For the purposes of implementing the Export Control Law of the People's Republic of China, strengthening and regulating the export control of dual-use items, safeguarding the country’s safety and interests, and fulfilling international obligations such as nonproliferation, the Ministry of Commerce, jointly with other interested departments, studied and drafted the Regulation of Export Control of Dual-Use Items (Consultation Paper) and is now soliciting public opinions on it. The deadline for the submission of opinions is May 22, 2022.

http://tfs.mofcom.gov.cn/article/as/202204/20220403306817.shtml

Hangzhou Customs has been actively implementing the ten GAC measures for promoting foreign trade, guaranteeing stability, and enhancing quality. Besides excelling in epidemic prevention and control, it is also vigorously promoting the direct shipment and pick-up mode for import and export, making flexible and good use of the transport capacity of various seaports and inland ports of the province to guarantee smooth and stable logistics at critical ports under its jurisdiction. “Road traffic has been disrupted due to the sporadic outbreak of COVID-19 in neighboring cities. A substantial number of enterprises choose to import and export goods via waterway, resulting in a high container workload. The customs’ vigorous promotion of direct shipment and pick-up can efficiently enhance the operation efficiency at harbors, speed up the flow of goods imported into and exported from the Yangtze River Delta region, and guarantee the stability of logistics supply chains.”

http://www.customs.gov.cn/customs/xwfb34/302425/sygdtp/4362773/index.html

Following Hainan Customs’ direct shipment and pick-up promotion in 2020, Hangzhou Customs launched this mode during the epidemic, substantially facilitating cross-border trade. The shipside delivery for import goods and direct shipment upon arrival at port for export goods is another reform initiative launched by Haikou Customs to advance stability on the six fronts (keeping employment, the financial sector, foreign trade, foreign and domestic investments, and expectations stable) and security in the six areas (ensuring security in job, basic living needs, operations of market entities, food and energy security, stable industrial and supply chains and the normal functioning of primary-level governments), optimizing the business environment, and promoting trade facilitation. Enterprises can make appointments with harbors and flexibly schedule container pick-up and arrival times at port based on their production plan. For foreign trade enterprises, this mode can shorten the customs clearance procedure of goods to a great extent, thus reducing the logistics cost at port for importing and exporting goods and, in particular, offering a faster customs clearance option for time-sensitive goods.

For the purposes of carrying out the decisions and deployment of the CPC Central Committee and the State Council in depth, actively implementing the Notice of the STA and Nine Other Departments on Further Increasing Support to Export Tax Rebate and Promoting the Stable Development of Foreign Trade (No. 36, [2022]), further helping enterprises overcome their difficulties, stimulating the dynamism and potential of export enterprises, optimizing the business environment for foreign trade, and improving the promotion of its stable development, the relevant matters are hereby notified as follows: 1. improving the classified administration of enterprises eligible for export tax refund/exemption; 2. optimizing the administration of export tax refund/exemption filing documents; 3. improving the export tax refund policies for the processing trade; 4. streamlining the materials required to be submitted for export tax refund/exemption; 5. expanding export tax refund/exemption reminder services; 6. simplifying the handling procedures for export tax refund/exemption; 7. simplifying the handling manner for export tax refund/exemption; 8. improving the foreign exchange receipt for export tax refund/exemption; 9. Article I, II, and III of this Announcement shall take effect as of May 1, 2022, Article IV and V as of June 1, 2022, and Article VI, VII, and VIII as of June 21, 2022. The Articles listed in the Catalog of Repealed Documentary Articles (Annex 3) shall cease to be implemented accordingly.

https://www.shui5.cn/article/45/161179.html

 Matters to be declared prior to shipment were reduced. Deemed foreign exchange receipt were clarified, and the range thereof was expanded. The Announcement, as a detailed version of the Notice, involves multiple supporting measures for export tax refund. It planned the implementation of the eight measures in three stages: three as of May 1, two as of June 1, and the other three as of June 21. The goal is to implement the supporting measures for export tax refund sustainably, continuously, consistently, and progressively, keep improving the export tax refund services experienced by import and export enterprises, and continue reducing export enterprise burdens, making things more convenient for them, and invigorating them.

Under the relevant provisions of the Regulations of the People's Republic of China on Import and Export Duties and the Regional Comprehensive Economic Partnership (RCEP) and the entry into force of RCEP for Myanmar, RCEP conventional tariff rates applicable for ASEAN member states will be imposed on some import goods originating in Myanmar starting from May 1, 2022. The tariff rates are specified in the Conventional Tariff Rates field of the Customs Import and Export Tariff of the People's Republic of China (2022) (Annex of CTCSC Announcement No. 10 of 2021), abbreviated as 东盟R (ASEAN R).

http://gss.mof.gov.cn/gzdt/zhengcefabu/202204/t20220427_3806422.htm

When importing from and exporting to Myanmar, enterprises should comprehensively consider which one of Form E and the RCEP certificate of origin is more preferential based on the origin criteria of goods. By now, only Indonesia and the Philippines have not ratified the RCEP.

The international trade Single Window launched the query function for manifests and cargo arrival status to provide the wide Single Window enterprise users with a convenient query service throughout the process and further enhance the informatization level at port. The user can query manifests and arrival status by entering the bill of lading number, be cargo transported by sea, air, road, or railway. Multiple query manners are supported, including the computer end (see the annex for instruction), the mobile end, and the WeChat mini-app.

More updated information:

1. As required by the business department of the GAC, prompt information will be added when the nature of taxation and exemption is selective taxation (under code 899) and Section 301 goods are involved in the corresponding selective taxation verification checklist.

2. In accordance with the business requirements, the exemption mark and exemption number fields for U.S. products subject to additional tariffs were cancelled for the material form of the selective taxation verification checklist. The exemption information will be declared in customs declaration.

3. As required by the business department of the GAC, the “guaranteed customs clearance with tax installment” option was added to the pop-up interface of the guaranteed customs clearance mode.

4. Explanation on the adjustment: the data entering menu was deleted while all of its submenus are kept with a higher level; the data query is now displayed as comprehensive query. The business function remains the same.

https://new.singlewindow.cn/#/detail？breadNum=bc12&articleId=0000000000001494

The General Office of the State Council issued the Opinions on Facilitating Stability and Quality Improvement of Foreign Trade on May 26, 2022. The Opinions proposed 13 policies and measures in four areas, such as guaranteeing the stable production and circulation in the foreign trade industry, offering bigger taxation and finance support to foreign trade enterprises, further helping them get orders and expand the market, and stabilizing the industry chain and supply chains of the foreign trade industry. The measures include the following: 1. better ensuring the production and operation security of foreign trade enterprises; 2. promoting smooth transport of foreign trade goods; 3. strengthening the maritime transport logistics services’ ability to stabilize foreign trade; 4. driving cross-border e-commerce businesses to develop faster with better quality and higher efficiency; 5. offering more considerable support to export credit insurance; 6. Providing greater support to export credit; 7. further strengthening the financial support for MSMEs in foreign trade; 8. speeding up the enhancement of foreign trade enterprises’ ability to address risks in foreign exchange rates; 9. continuing optimizing the RMB settlement environment for foreign trade; 10. Encouraging enterprises to make good use of online channels to expand trade transactions; 11. encouraging innovative green products with a high added value to expand the international market; 12. strengthening imports and promoting platform fostering and construction; 13. supporting the stable development of the processing trade.

http://www.gov.cn/zhengce/content/2022-05/26/content_5692364.htm

For the purposes of implementing the decisions and deployment of the CPC Central Committee and the State Council in depth, the State Council issued the Policy and Measure Package for Stabilizing the Economy on May 31, 2022. The Package includes 33 measures in six areas, which are fiscal policies (7), monetary and financial policies, investment and consumption policies (6), energy security policies (5), industry supply chain policies (7), and people's livelihood policies (3).

http://sh.mof.gov.cn/tongzhitonggao/202206/t20220608_3816212.htm

For the purposes of implementing the policy and measure package for stabilizing the economy of the State Council and the guiding principles of the Notice of the People's Bank of China and the State Administration of Foreign Exchange on Strengthening Financial Services for Epidemic Prevention and Control and Socio-Economic Development, supporting the high-quality development of the real economy, the SAFE decided to carry out the pilot program of cross-border financing facilitation for high and new technologies and specialized, refined, differential, and innovative (SRDI) enterprises. This Notice shall come into force as of May 31, 2022.

http://www.gov.cn/zhengce/zhengceku/2022-06/01/content_5693355.html

 This Notice extended the scope of the pilot from 9 provinces and municipalities to 17, expanded the types of interested parties by involving SRDI enterprises besides high and new technology enterprises, and increased the amount limit of the pilot.

For the purposes of strengthening energy supply security and advancing high-quality development, the CTCSC decided by following the procedure to impose a provisional zero tax tariff on coal imports from May 1, 2022, to March 31, 2023.

http://xj.mof.gov.cn/zcfagui/202205/t20220531_3814841.htmml

The NMPA announced on May 7 that, in accordance with the Regulations on Supervision and Administration of Medical Devices, the following five medical device registration certificates of two enterprises were canceled upon application:

1. Four products of Shenzhen Bio Cup BioTech Co., Ltd., with registration number 20173400929, 20173400930, 20173400932, and 20173400933;

2. One product of TINAVI Medical Technologies Co., Ltd., with registration number 20193011897.

https://www.nmpa.gov.cn/ylqx/ylqxggtg/ylqxqtgg/20220510102446179.html

As announced by the NMPA on May 13, the NMPA approved the registration of 212 medical devices in April, including 154 domestic Class III medical devices, 35 imported Class III medical devices, 20 imported Class II medical devices, and 3 medical devices from Hong Kong, Macao, and Taiwan. Please refer to the announcement for the details.

https://www.nmpa.gov.cn/xxgk/ggtg/ylqxpzhzhcchpgg/20220516154527116.html

As announced by the NMPA on May 18, 55 medical device industry standards, including the YY 0307-2022 Laser Therapy Devices: Yttrium Aluminium Garnet (YAG) Laser Therapy Device, and 2 amendments to medical device industry standards are hereby issued after review and approval. Please refer to the annex of the announcement for standard numbers, titles, applicable ranges, and implementation dates.

https://www.nmpa.gov.cn/ylqx/ylqxggtg/ylqxqtgg/20220520170456130.html