This English translation is for reference only. The Chinese version shall prevail in case of any inconsistencies.
Announcement of the General Administration of Customs on Issuing the Measures of the Customs of the People’s Republic of China for the Administration of Tax Exemptions on Imported Goods in the Guangdong-Macao In-Depth Cooperation Zone in Hengqin
(Announcement No. 18 [2024] of the General Administration of Customs)
For the purpose to implement the Master Plan for the Construction of Guangdong Macao In-Depth Cooperation Zone in Hengqin, the General Administration of Customs of the People’s Republic of China promulgates the Measures of the Customs of the People’s Republic of China for the Administration of Tax Exemptions on Imported Goods in the Guangdong-Macao In-Depth Cooperation Zone in Hengqin and hereby officially issues them.
General Administration of Customs
February 6, 2024
Measures of the Customs of the People’s Republic of China for the Administration of Tax Exemptions on Imported Goods in the Guangdong-Macao In-Depth Cooperation Zone in Hengqin
Article 1 For the purpose of implementing the Master Plan for the Construction of Guangdong Macao In-Depth Cooperation Zone in Hengqin and pursuant to the Customs Law of the People’s Republic of China, the Regulations of the People’s Republic of China on Import and Export Duties, other relevant laws and administrative regulations, and the Notice by the Ministry of Finance, the General Administration of Customs and the State Taxation Administration on the Relevant Import and Export Tax Policies Regarding Goods Entering and Leaving the Guangdong-Macao In-Depth Cooperation Zone in Hengqin (No. 1 [2024] of the Ministry of Finance, the General Adminstration of Customs, and the State of Taxation Administration) and other relevant provisions, hereinafter referred to as the “Notice”), these Measures are hereby formulated.
Article 2 Entities eligible for import tax exemptions are exempt from import duties, import value-added tax (VAT), and consumption tax (collectively referred to as the “import tax exemption policies”) while importing self-use machinery, equipment, and construction materials through the open ports between the Guangdong-Macao In-Depth Cooperation Zone in Hengqin (hereinafter referred to as the “Cooperation Zone”) and the Macao Special Administrative Region of the People's Republic of China (hereinafter referred to as the “Macao SAR”).
Article 3 For the purpose of these Measures, the term “entities eligible for import tax exemptions” refers to enterprises registered in the Cooperation Zone and with independent legal entity status, as well as administrative organs, public institutions, statutory bodies, and social organizations and non-enterprise private units registered in the Cooperation Zone. The list of eligible 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) in conjunction with Gongbei Customs and other relevant departments.
For the purpose of these Measures, the term “self-use machinery and equipment” refers to machinery and equipment (excluding transportation equipment such as aircraft, automobiles, ships, and yachts), molds, and spare parts for the repair of the aforementioned items imported for self-use by eligible entities, including goods under Chapters 84, 85, and 90, as well as item 9508 under Chapter 95 of the Import and Export Tariff Schedule of the People’s Republic of China (2023), except for goods listed in the non-exempt items in the attachment of the “Notice”.
The term “capital project materials” excludes materials for interior decoration and renovation. Goods falling under the four categories of measures described in Article 5 of the “Notice” are not eligible for import tax exemption policies.
Article 4 The self-use machinery and equipment and capital project materials (hereinafter collectively referred to as “tax-exempt goods”) imported by eligible entities must be for self-use and necessary for the lawful production and operation, business activities, infrastructure projects, or performance of duties by the eligible entities.
Article 5 The Customs shall implement electronic account management for tax-exempt goods. With regard to self-use machinery and equipment, management shall be conducted with the tax-exempt importing entities as the unit of account; wherein self-use capital project materials shall be overseen on a per-project basis.
Article 6 Prior to the initial declaration for the import of tax-exempt goods, entities eligible for import tax exemptions shall register their unified social credit identifier, business scope, and other pertinent information via the “Guangdong-Macao In-Depth Cooperation Zone Smart Port Public Service Platform” (hereinafter referred to as the “Public Service Platform”).
Article 7 Before declaring the import of tax-exempt goods, entities eligible for import tax exemptions shall document the names, codes, specifications, models, prices, origins, and import quantities of the machinery, equipment, or capital project materials for recordation and submit the relevant documents through the Public Service Platform to the Customs, thereby establishing an account for the tax-exempt goods. For capital project materials, a construction permit or other proof issued by the Executive Committee for the infrastructure project is required.
Should the recorded information be incomplete, the Customs shall notify the eligible entities through the system to make the necessary corrections. If the recorded goods do not qualify for exemption, the Customs shall reject the recordation and notify the entities through the system. In the event of changes to the recorded names, codes, specifications, models, origins, or quantities of the goods, the eligible entities shall process such changes through the Public Service Platform prior to declaring the import of the goods.
The declared import of tax-exempt goods shall not exceed the recorded range and quantities.
Article 8 Prior to declaring the import of tax-exempt goods, eligible entities shall complete the Verification and Endorsement List of Tax-Exempt Goods (hereinafter referred to as the “Verification and Endorsement List”) via the Public Service Platform and transmit it to the Customs information management system. Upon verification that the entities and goods listed match the recorded information, the Customs shall confirm the import.
Article 9 When importing tax-exempt goods, the entities eligible for import tax exemptions shall utilize the Customs Recordation List for Inbound Goods of the People's Republic of China (hereinafter referred to as the “Recordation List”) for the declaration process. The fields “Customs of Declaration” and “Port of Entry” shall be designated as Hengqin Customs (code: 5795). The “Nature of Tax Levy and Exemption” shall be indicated as “Self-use Equipment in the Guangdong-Macao In-Depth Cooperation Zone in Hengqin” (code: 481, hereinafter referred to as “Cooperation Zone Self-use Equipment”), or “Capital Project Materials in the Guangdong-Macao In-Depth Cooperation Zone in Hengqin” (code: 482, hereinafter referred to as “Cooperation Zone Capital Project Materials”). The “Consignee” field shall be completed with the name of the entity eligible for tax exemptions.
The information in all other columns of the Recordation List must correspond and be consistent with the respective columns in the Verification and Endorsement List confirmed by the Customs.
Article 10 Tax-exempt goods are restricted for self-use by the entities eligible for import tax exemptions within the Cooperation Zone and are subject to legal customs supervision. Capital project materials are confined to use in the specific recorded capital project.
Except as otherwise provided by the General Administration of Customs, the customs supervision period for tax-exempt goods imported through the designated ports between the Cooperation Zone and the Macao SAR is three years, commencing from the date of release of the goods. Upon the conclusion of the customs supervision period, no further management as tax-exempt goods shall be applied.
Article 11 Within the customs supervision period, should an entity eligible for tax exemptions seek early termination of supervision, it shall be required to repay the applicable taxes in accordance with relevant regulations.
The dutiable value for tax repayment shall be calculated based on the original dutiable value of the goods at the time of importation through the designated ports between the Cooperation Zone and the Macao SAR, adjusted for depreciation in proportion to the duration the goods have been within the Cooperation Zone relative to the customs supervision period. The calculation formula is as follows:
Dutiable Value for Tax Repayment = Original Dutiable Value at Time of Import × [1 - (Time the Goods Have Been in the Cooperation Zone in Months / (Supervision Period in Years × 12)]
The time the goods have been in the Cooperation Zone shall be calculated on a monthly basis from the date of release of the goods. Periods of less than one month but more than 15 days shall be rounded up to the nearest month; periods of 15 days or less shall not be counted.
Article 12 During the customs supervision period, entities eligible for import tax exemptions shall, by the fifth working day of each month, independently report the consumption of tax-exempt capital project materials (excluding reusable materials) from the preceding month by submitting the Verification and Endorsement List to the Customs, who shall then deduct the reported consumption from the account of tax-exempt capital project materials based on the data declared by the eligible entities.
The eligible entities shall be responsible for the authenticity and accuracy of the reported consumption of capital project materials and shall bear the corresponding legal responsibilities.
For capital project materials reported as consumed and approved by the Customs within the customs supervision period, no further management as tax-exempt goods shall be implemented, and no additional taxes shall be levied.
Article 13 Within the customs supervision period, entities eligible for import tax exemptions shall submit an annual report on the usage of tax-exempt goods for the preceding year to the Customs via the Public Service Platform by June 30th (inclusive) of each year.
Article 14 Within the customs supervision period, the following provisions shall apply if entities eligible for import tax exemptions transfer tax-exempt goods within the Cooperation Zone:
1. If the tax-exempt goods are transferred to another entity eligible for tax exemptions within the Cooperation Zone, both the transferring and receiving entities shall complete the Verification and Endorsement List. The supervision period for the tax-exempt goods shall continue to be calculated consecutively, and the remaining supervision period shall continue to be enforced without the necessity for additional tax payments.
2. If the tax-exempt goods are transferred to an entity outside of those eligible within the Cooperation Zone, the transferring entity eligible for tax exemptions shall complete the Verification and Endorsement List and pay the corresponding taxes in accordance with the relevant provisions for import duty exemptions. The dutiable value for tax payment shall be calculated in accordance with the provisions of Article 11 regarding early termination of supervision, and after the tax payment, no further management as tax-exempt goods shall be implemented.
Article 15 If entities eligible for import tax exemptions sell tax-exempt goods under customs supervision to individuals, they shall first complete the customs formalities in accordance with the relevant provisions for imported goods and pay import duties, import-stage value-added tax, and consumption tax based on the actual declared state. After the tax payment, no further management as tax-exempt goods shall be implemented.
Article 16 Within the customs supervision period, if entities eligible for import tax exemptions need to use tax-exempt goods as collateral for loans with domestic banks or non-bank financial institutions, they shall apply to the Customs through the Public Service Platform in advance and provide tax guarantees recognized by the Customs. Upon approval by the Customs, the loan collateral can be processed in accordance with regulations.
Entities eligible for import tax exemptions shall not use tax-exempt goods as collateral for loans with natural persons, legal entities, or unincorporated entities other than banks or non-bank financial institutions.
Article 17 Within the customs supervision period, if entities eligible for import tax exemptions need to repurpose tax-exempt goods, they shall apply to the Customs in advance. Upon approval by the Customs, the tax-exempt goods can be repurposed according to the approved entity and purpose.
Unless otherwise stipulated by the General Administration of Customs, for the repurposing of tax-exempt goods as specified in the first paragraph of this Article, the entities eligible for import tax exemptions shall pay the corresponding taxes in advance according to the time of repurposing. If the time of repurposing cannot be determined, a tax guarantee shall be provided, and the amount of the tax guarantee shall not exceed the maximum total taxes that may need to be paid for the remaining supervision period of the tax-exempt goods.
If entities eligible for import tax exemptions need to repay taxes for the repurposing of tax-exempt goods, the dutiable value for tax repayment shall be based on the original dutiable value of the goods when imported through the open ports between the Cooperation Zone and the Macao SAR, depreciated according to the proportion of the time the taxes need to be paid relative to the supervision period. The calculation formula is as follows:
Dutiable Value for Tax Repayment = Original Dutiable Value at Time of Import × [Time Requiring Tax Repayment in Days / (Supervision Period in Years× 365)]
In the above formula, the Time Requiring Tax Repayment refers to the actual time the tax-exempt goods are repurposed, calculated on a daily basis. Each day of actual use, whether less than or exceeding 8 hours, shall be counted as one day.
Article 18 Within the customs supervision period, should entities eligible for import tax exemptions need to return tax-exempt goods abroad or export them to a foreign country, they shall submit the Verification and Endorsement List via the Public Service Platform. Upon approval by the Customs, the necessary procedures for the return or export of the goods shall be completed.
From the date the tax-exempt goods are returned abroad or exported, the customs supervision shall cease, and no further taxes shall be imposed.
Article 19 Within the customs supervision period, the introduction of tax-exempt goods into other regions within the customs territory of the People's Republic of China (hereinafter referred to as "domestic regions outside the Cooperation Zone") shall be subject to the following procedures in compliance with the relevant regulations for imported goods:
1. If the tax-exempt goods are sold to an entity in a domestic region outside the Cooperation Zone that is entitled to the same tax exemption benefits for imported goods, the entity eligible for tax exemptions in the Cooperation Zone shall submit the Verification and Endorsement List, and the entity outside the Cooperation Zone benefiting from the relevant import tax exemption policies shall handle the tax exemption review and import declaration procedures in accordance with the provisions for import and export duty exemptions. The supervision period for the duty-exempt goods shall continue to be calculated consecutively.
2. If the tax-exempt goods are sold to an entity in a domestic region outside the Cooperation Zone that is not entitled to the same tax exemption benefits for imported goods, the entity eligible for tax exemptions in the Cooperation Zone shall pay the corresponding taxes in accordance with the provisions of Article 11 concerning early termination of supervision. After the tax payment, the goods shall no longer be subject to management as tax-exempt goods.
3. If the supervision period for the tax-exempt goods has lapsed, or if such goods have already been subject to import duties, import-stage value-added tax, and consumption tax within the Cooperation Zone, no supplementary import taxes shall be imposed upon their introduction into domestic regions outside the Cooperation Zone.
Article 20 In the event of changes to entities eligible for import tax exemptions, such as division, merger, dissolution, bankruptcy, or other legal terminations during the customs supervision period, the regulations governing changes in subjects for the administration of import and export duty exemptions shall apply.
Article 21 Except under special circumstances, the competent customs authority shall make a decision on applications for loan collateral, repurposing, or the return of tax-exempt goods abroad within ten working days from the receipt of the application.
Article 22 The Customs shall carry out inspections and audits on the use of tax-exempt goods by entities eligible for import tax exemptions in accordance with the Customs Law of the People’s Republic of China, the Regulations of the People’s Republic of China on Customs Audits, and other relevant provisions.
Article 23 Goods originating from domestic regions outside the Cooperation Zone that are imported into the Cooperation Zone and declared for export, which fall within the tax exemption scope as delineated in Article 3 and meet the self-use criteria set forth in Article 4, shall be governed by the tax-exempt management provisions of these measures. The entity eligible for tax exemptions in the Cooperation Zone shall submit the Verification and Endorsement List via the Public Service Platform, and the export entity from the domestic region outside the Cooperation Zone shall submit the export declaration form as required. Upon entry into the Cooperation Zone, these goods shall be managed in compliance with the provisions outlined in these measures.
Article 24 For tax-exempt goods that are subject to license management, the relevant regulations on license management for the Cooperation Zone shall apply.
Article 25 The General Administration of Customs shall be responsible for the interpretation of these measures.
Article 26 These measures shall take effect from the date the Cooperation Zone officially commences special customs operations.