Hainan's Official Portal for Global Investors
China's Ministry of Finance, General Administration of Customs and General Administration of Taxation published a small list of exceptions to the rule (the so-called negative list) for companies intending to import production equipment or materials to the Island of Hainan that are not subject to favorable tax and trade exemption policies duties, announced the provincial administration.
According to Hainan's Free Trade Port WeChat page, this clarification affects the decision to abolish from December 1, 2020, fiscal fees (import duties, VAT and consumption tax — TASS) on a number of industrial goods. Thanks to that, enterprises importing equipment used for infrastructure construction, in the manufacturing industry, in design and research activities, during testing and repair work, in logistics, in the field of culture and tourism, as well as provision of medical services, on Hainan were freed from the fiscal burden.
According to a recently issued statement, a few companies importing equipment that, due to other local regulations, are not eligible for these exemptions, cannot benefit from the exemption policy. Such goods include, in particular, goods prohibited for import to China. The authorities suggest that the list of individual exceptions be consulted through the competent authorities.
The provincial administration recalls that cases in which importers of production equipment and raw materials are not exempted from taxes and duties are not common in Hainan's customs practice. The government emphasizes that there are no duties or taxation measures when importing a wide range of industrial goods. As an example, the authorities cite technical devices used in amusement parks: at a cost of 100 million yuan ($ 15.4 million), you can save 13 million yuan ($ 2 million).
Zeroing of duties on a number of goodsChina's Hainan, effective December 1, 2020, has canceled duties on a wide range of imported goods used in manufacturing and services, from agricultural products to liquefied natural gas, components for aircraft and helicopters. The importing companies meeting the requirements were able to import to the island products belonging to 169 points of the customs nomenclature without paying any fees.
The list of goods exempted from taxes includes rye, barley, oats, buckwheat, as well as sunflower seeds, hydrocarbons and chemical raw materials, various types of wood, boat motors, parts from boats and yachts, radar and aerospace equipment. The decision to lift such trade barriers applies to companies that are registered on the island and use the above products for production purposes, as well as in the provision of services, including for repairs.
