Policies | Compilation of Export Import Policies of April 2021

• The data released by the General Administration of Customs showed China’s total export and import value in April amounted to 484.99 billion U.S. dollars, up 37% year-on-year, up 3.5% month-on-month, up 29.6% compared with the same period in 2019. Among them, exports were 263.92 billion U.S. Dollars, with a year-on-year increase of 32.3% and a month-on-month increase of 9.5%, up 36.3% compared with the same period in 2019. Imports were 221.07 billion U.S. dollars, with a year-on-year increase of 43.1% and a month-on-month decrease of 2.8%, up 22.5% compared with the same period in 2019. The trade surplus in April was 42.85 billion U.S. dollars, down by 4.7% year-on-year, with a big increase compared with the trade surplus of 13.8 billion U.S. dollars in this March. Due to the low base effect of April, 2020, there was a fast year-on-year growth in both exports and imports in April, 2021, which was much better than the market expectation.

• On one hand, due to the imbalance between supply and demandresulted from the resurgences of COVID-19 in some regions and influences suchas the advancement of the Regional Comprehensive Economic Partnership (RCEP),the overseas market grew more dependent on the exports of China. On the otherhand, the demand in the domestic market has been growing and the global economyhas been recovering as a whole. In particular, the economic recovery of thelargest trading partners of China is favorable for imports. As a result,generally speaking, China’s exports are expected to remain robust in the secondquarter and its imports are also expected to see further growth.

Announcement of the Customs Tariff Commission of the State Council on Adjusting Tariffs on Some Steel Products (CTC Announcement No. 4 [2021])

For the purposes of guaranteeing the supply of steel resources and promoting the quality development of the steel industry, the CTC decided to adjust the import and export tax rates of some steel products as of May 1, 2021. Provisional zero import tax rate will be applied to pig iron, crude steel, recycled steel raw materials, and ferrochrome, among others. The export tax rates on ferrosilicon, ferrochrome, high-purity pig iron, and so on will be appropriately raised. An export tax rate of 25%, a provisional export tax rate of 20%, and a provisional export tax rate of 15% will be levied on them respectively after the adjustment. The implementation of the new tax rates will depend on the export date indicated on the export customs declaration form. The CIS commodity management system of HMG has been updated accordingly for all users.

http://szs.mof.gov.cn/zhengcefabu/202104/t20210428_3694213.htm

Guiding Opinions of the Ministry of Commerce on Establishing Internal Compliance Mechanisms for Export Control by Exporters of Dual-Use Items (MOFCOM Announcement No. 10 of 2021)

Effective export control measures are an important tool to uphold China's sovereignty, security, and development interests and fulfill China’s international obligations. The Export Control Law of the People's Republic of China officially took effect as of December 1, 2020, providing a more forceful legal protection to the export control in the new era. The Export Control Law explicitly regulates the state export control administration should guide exporters to establish and improve their internal compliance mechanisms. As basic business entities, dual-use item exporters form an important link in the establishment of the state export control mechanism. By combining the new characteristics of the export control in the new era, MOFCOM modified and improved the Guiding Opinions on Establishing Internal Mechanisms for Export Control by Exporters of Dual-Use Items and Techniques (Announcement No. 69 [2007]). Please refer to the announcement for the detailed information. The Guiding Opinions shall come into effect as of April 48, 2021. MOFCOM Announcement No. 69 [2007] shall be invalided.

 http://www.mofcom.gov.cn/article/zwgk/zcfb/202104/20210403056267.shtml

Notice on the Administrative Measures for the Tax Policy for Supporting the Import of Aviation Equipment for Civil Aviation Maintenance from 2021 to 2030 (Cai Guan Shui No. 16, [2021])

For the purposes of accelerating the growth of the aviation industry and promoting the development of China's civil aviation transportation, maintenance and other industries, from January 1, 2021 to December 31, 2030, civil aircraft design and manufacturing enterprises, domestic airlines, maintenance units, and aviation equipment distributors shall be exempt from import tariff for imported aviation equipment for maintenance that cannot be produced in China or the performance of which produced in China cannot meet the requirements. The Civil Aviation Administration of China will work with the Ministry of Industry and Information Technology, the Ministry of Finance, and the General Administration of Customs to formulate and issue the list of the aviation equipment for maintenance that shall be exempt from import tax. For the duty-free imported aviation equipment for maintenance under this notice, the customs will no longer follow up on the supervision on specific goods eligible for tax reduction or tax exemption. Please refer to the announcement for the detailed information.

http://gss.mof.gov.cn/gzdt/zhengcefabu/202104/t20210407_3682305.htm

Notice on the Administrative Measures for the Import Tax Policies for Supporting the Development of the New Display Industry from 2021 to 2030 (Cai Guan Shui No. 20 [2021])

For the purposes of accelerating the development of the new generation of information technologies and supporting the development of the new display industry, from January 1, 2021 to December 31, 2030, if a manufacturer of new display devices imports raw materials and consumables for production, supporting systems of clean rooms, and components and parts of production equipment (whether imported or domestic) that cannot be produced in China or the performance of which produced in China cannot meet the requirements for its own production purpose (including research and development), the import tariff shall be exempted; if a manufacturer of key raw materials and components and parts of the new display industry imports raw materials and consumables for production that cannot be produced in China or the performance of which produced in China cannot meet the requirements for its own production purpose, the import tariff shall also be exempted. In accordance with the industry development and the technological advance in China, the Ministry of Finance, the General Administration of Customs, and the State Taxation Administration will work with the National Development and Reform Commission and the Ministry of Industry and Information Technology to make adjustments to the aforementioned key raw materials and components and parts in due time. Businesses exempt from import tariffs shall go through the formality of tax reduction and exemption for their imports in accordance with the relevant regulation of the customs. Please refer to the announcement for the detailed information.

http://gss.mof.gov.cn/gzdt/zhengcefabu/202104/t20210412_3684758.htm

The Ministry of Industry and Information Technology, the National Development and Reform Commission, the Ministry of Finance, and the State Taxation Administration issued the Conditions of Integrated Circuit Design, Equipment, Materials, Packaging, Testing Enterprises Encouraged by the State (No. 9 [2021])

In accordance with the Notice of the State Council on Issuing Several Policies on Promoting the Quality Development of the Integrated Circuit Industry and the Software Industry in the New Era (Guo Fa No. 8 [2020], hereinafter referred to as the Several Policies) and the relevant provisions of the supporting tax policies, the conditions of the state-encouraged integrated circuit design, equipment, materials, packaging, testing enterprises mentioned in the second item of the Several Policies, and the major materials retained for future reference of the state-encouraged integrated circuit design, equipment, materials, packaging, testing enterprises that enjoy the preferential policies on enterprise income tax are hereby issued. Please refer to the announcement for the detailed conditions. This Announcement shall come into force as of January 1, 2020.

http://www.chinatax.gov.cn/chinatax/n810341/n810825/c101434/c5163819/content.html

The Ministry of Industry and Information Technology, the National Development and Reform Commission, the Ministry of Finance, and the State Taxation Administration issued the Conditions of Software Enterprises Encouraged by the State (No. 10 [2021])

For the purpose of implementing the decision of the Notice of the State Council on Issuing Several Policies on Promoting the Quality Development of the Integrated Circuit Industry and the Software Industry in the New Era (Guo Fa No. 8 [2020]), in accordance with the Announcement on the Enterprise Income Tax Policies for Promoting the Quality Development of the Integrated Circuit Industry and the Software Industry (Announcement No. 45 [2020] of MOF, STA, NDRC, and MIIT), the Ministry of Finance, the State Taxation Administration, the National Development and Reform Commission, and the Ministry of Industry and Information Technology formulated the conditions of the state-encouraged software enterprises. Please refer to the announcement for the detailed conditions. This Announcement shall come into force as of January 1, 2020.

https://www.miit.gov.cn/jgsj/xxjsfzs/wjfb/art/2021/art_d148ef70d47447199babc08fad3ec04e.html

Announcement of the Ministry of Finance and the State Taxation Administration on Clarifying the Policies on the Refund of End-of-Period Excess Input VAT Credits in Advanced Manufacturing Industries (No. 15 [2021])

For the purpose of further promoting the quality development of advanced manufacturing industries, the Ministry of Finance and the State Taxation Administration issued the Announcement on Clarifying the Policies on the Refund of End-of-Period Excess Input VAT Credits in Advanced Manufacturing Industries. As of April 1, 2021, taxpayers in advanced manufacturing industries that meet the conditions may apply to the competent tax authority for refund of the incremental excess input tax credit from May, 2021 and the subsequent tax return filing periods. Taxpayers in advanced manufacturing industries who have got the refund of the excess input tax credit are not entitled to enjoy the policies of VAT refund upon payment and VAT return (refund) after payment. Other provisions on applications of taxpayers in advanced manufacturing industries for the refund of the excess input tax credit shall be implemented in accordance with the Announcement of the Ministry of Finance, the State Taxation Administration, and the General Administration of Customs on Policies for Deepening the VAT Reform (Announcement No. 39 [2019] of MOF, STA, and GACC) and the Announcement of the Ministry of Finance and the State Taxation Administration on Clarifying the Policies on the Refund of End-of-Period Excess Input VAT Credits in Certain Advanced Manufacturing Industries (Announcement No. 84 [2019] of MOF and STA).

http://www.chinatax.gov.cn/chinatax/n359/c5163917/content.html

The Ministry of Ecology and Environment issued the announcements on Supplementing the Inventory of Existing Chemical Substances in China (No. 11 [2021])

In accordance with the relevant requirements on the environmental management of new chemical substances and the provisions of the Notice on Supplementing and Improving the Inventory of Existing Chemical Substances in China (Huan Ban Gu Ti Han No. 575 [2019]), the Ministry of Ecology and Environment included 204 chemical substances that meet the requirements into the Inventory of Existing Chemical Substances in China. Please refer to the annex of the announcement for the detailed information.

https://www.mee.gov.cn/xxgk2018/xxgk/xxgk01/202104/t20210421_829704.html

The Ministry of Ecology and Environment issued the announcements on Supplementing the Inventory of Existing Chemical Substances in China (No. 12 [2021])

In accordance with the relevant requirements of the Measures for the Environmental Management Registration of New Chemical Substances (MEE Order No. 12) and the Announcement on the Issuance of the Guidance for Environmental Management Registration of New Chemical Substances, the Relevant Forms, and the Form Filling Explanation (MEE Order No. 51 [2020]), 115 new chemical substances registered under the Measures for Environmental Management of New Chemical Substances (Order No. 7 of the Ministry of Environmental Protection) that meet the requirements are hereby supplemented into the Inventory of Existing Chemical Substances in China and shall be administrated as existing chemical substances.

http://www.mee.gov.cn/xxgk2018/xxgk/xxgk01/202104/t20210425_830319.html

Notice of the Ministry of Commerce and 19 Other Departments on Several Measures on Promoting the Liberalization and Facilitation of Trade in the Hainan Free Trade Port (Shang Zi Mao Fa No. 58 [2021])

For the purposes of supporting Hainan in gradually exploring and steadily promoting the construction of the Free Trade Port with Chinese characteristics, establishing the Free Trade Port policy and institutional system step by step and stage by stage, refining and implementing the deployments and requirements of Overall Plan for the Construction of Hainan Free Trade Port, accelerating the promotion of the liberalization and facilitation of trade in the Hainan Free Trade Port, and realizing the development goals of the stage by 2025 with high quality and high standards, upon the approval of the State Council, 20 ministries and commissions issued a joint notice on relevant matters on April 19, 2021, with 28 policies involved, including trade of goods and trade in service. Please refer to the notice for the detail.

http://www.mofcom.gov.cn/article/news/202104/20210403055185.shtml

The Ministry of Finance, the General Administration of Customs, and the State Taxation Administration issued the Notice on the Preferential Tax Policies for the Imported Exhibits Sold during the China International Consumer Products Expo (Cai Guan Shui No. 32 [2021])

For the purpose of implementing the Overall Plan for the Construction of Hainan Free Trade Port, upon the approval of the State Council, the three departments issued the Notice on the Preferential Tax Policies for the Imported Exhibits Sold during the China International Consumer Products Expo on April 27, 2021. It is clarified that before the island-wide independent customs operations, imported exhibits within the specified upper limit sold during the Expo shall be exempt from import tariffs, import value-added tax and consumption tax. The upper limit of the exhibits of each exhibitor that can enjoy the preferential tax policies will be implemented in accordance with the annex. Prohibited imports of China, endangered animals and plants and their products, tobaccos, liquors, and cars are excluded from the exhibits that can enjoy the preferential tax policies. Tax will be levied on exhibits beyond the maximum limit of number or price regulated in the annex sold during the Expo and exhibits that were not sold during the Expo but will not be shipped back after the Expo in accordance with the relevant provisions of China. The exhibitor list and the list of exhibits for sale during the Expo will be submitted to Haikou Customs by the Hainan Provincial Bureau of International Economic Development or the unit designated by it. The notice shall come into force as of the date of promulgation.

http://www.chinatax.gov.cn/chinatax/n377/c5163860/content.html 

Notice of the General Administration of Customs on Soliciting Public Opinions on the Provisions of the Customs of the People's Republic of China on the Procedures for Handling Administrative Penalty Cases (Consultation Paper)

For the purposes of implementing the newly revised Law of the People's Republic of China on Administrative Penalty and promoting the customs to carry out law enforcement in a strict, standardized, impartial, and civil manner, the General Administration of Customs revised the Measures of the People's Republic of China for Hearings on Customs Administrative Punishment (GACC order No. 145), the Provisions of the Customs of the People's Republic of China on the Procedures for Handling Administrative Penalty Cases (GACC order No. 159), and the Provisions of the Customs of the People's Republic of China on the Procedures for Handling Simple Administrative Penalty Cases (GACC order No. 188) together to form the Provisions of the Customs of the People's Republic of China on the Procedures for Handling Administrative Penalty Cases (Consultation Paper), which is the uniform provisions on regulating the administrative penalty procedures of the customs. The General Administrative of Customs is now soliciting public opinions on this Consultation Paper. The deadline for the submission of opinions is May 21, 2021.

http://www.customs.gov.cn/customs/302452/302329/zjz/3634654/index.html

Soliciting public opinions on the Complementary Announcement of the State Taxation Administration and the State Administration of Foreign Exchange on Issues concerning Taxation Recordation for Foreign Payments under Trade in Services and Other Items (Consultation Paper)

For the purposes of implementing the Opinions on Further Deepening the Reform of Tax Collection and Management issued by the General Office of the Chinese Communist Party and the General Office of the State Council, promoting in depth the reform of delegating power, streamlining administration, and optimizing government services, optimizing the business environment, and further promoting the liberalization and facilitation of trade and investment, the State Taxation Administration and the State Administration drafted the Complementary Announcement on Issues concerning Taxation Recordation for Foreign Payments under Trade in Services and Other Items (Consultation Paper) and are now soliciting public opinions on it. You can log into the website of the State Taxation Administration (http://www.chinatax.gov.cn) to submit your opinion in the Interaction and Communication - Opinion Solicitation column on the homepage by May 26, 2021.

http://www.chinatax.gov.cn/chinatax/n810356/n810961/c5163787/content.html