The Chinese government will adjust the policy concerning import preferential duties from Oct. 1, 2002, the Ministry of Finance announced in Beijing on Friday.
According to new regulations, tariffs will be levied on some products imported for technical renovation projects, infrastructure projects and foreign-funded projects authorized before Apr. 1, 1996, if listed in non-exemption categories. Exemption will continue for some other imports.
According to the new regulations, tariffs will initially be levied on equipment imported for newly-approved foreign-funded projects whose products are all to be exported directly. Reimbursement will be made over a five-year period conditional upon all production being exported. Otherwise, the duty will not be reimbursed and penalties will follow.
Those projects approved earlier will continue to enjoy exemption if the importing of equipment is still needed. The government will investigate the relevant export situation for the exemption validity.
All the above-mentioned imported equipment was exempt from tariffs before the policy adjustment.
According to the new regulations, no individual applications for import tariff exemption will be approved. Together with those 20 kinds of non-exemption imports chosen by the State Council, all productive raw materials as well as automobiles imported for large-scale activities will not be exempt from tariffs.
(Xinhua News Agency September 13, 2002)
