Supplementary Circular of the Ministry of Finance and the State Administration of Taxation on Decreasing the Export Rebate Rate of Part

Supplementary Circular of the Ministry of Finance and

the State Administration of Taxation on Decreasing the Export

Rebate Rate of Part of the Commodity

Departments (bureaus) of public finance and taxation bureaus of all provinces, autonomous regions, municipalities and cities specifically designated in the state plan:

 After the Circular of the Ministry of Finance and State Administration of Taxation on Decreasing the Export Rebate Rate of Part of the Commodity (Cai Shui [2007] No. 90) was printed and distributed, we have successively received letters from some regions requiring clarifying the export rebate rate of some commodities and the application scope of the export equipments and construction materials under the long-term foreign contracting project contract. A supplementary circular concerning the relevant particulars is given as follows:

 1. In accordance with Item 1, Article 1 in "Cai Shui [2007] No.90", the export rebate of the commodities under commodity codes 2932999091, 3922200010 and 4412101911 shall be canceled. In accordance with Item 2, Article 1 of "Cai Shui [2007] No.90", the export rebate of salt under commodity codes 25010011, 25010019 and 25010020 shall be canceled. In accordance with Item 11, Article 2 of "Cai Shui [2007] No.90", the export rebate rate of rotary furnace, coke furnace and stapler under commodity codes 84178010, 84178030, 84179010, 84179020 and 84729022 shall be reduced to 9%.

 2. All the commodities listed in the List of Reducing the Export Rebate Rate of Commodities (i.e. Appendix 2 of "Cai Shui [2007] No.90") shall not include the commodities listed in Appendix 1 and Appendix 3 as well as commodities whose export rebates were canceled or exempted, and shall be adjusted as follows:

 (1) The export rebate rate of cyclitol and its halogenated, sulphonated, nitrated or nitrosated derivatives under the serial number 58 and commodity code 2906 (excluding commodities under commodity codes 29061100 and 29061990) shall be adjusted to 5%.

 (2) The name of the commodities under the serial number 297 and commodity codes 3901 through 3926 shall be adjusted to "Chapter 39 excluding the commodities whose tariff number is 3909301000".

 (3) The export rebate rate of "tie-in electric conduct whose rate pressure is no more than 80 volts" under the serial number 812 and commodity code 85444219 shall be adjusted to 9%.

 3. The specific scope of "long-term foreign contracting contract", "equipment", and "construction material" in Paragraph 3, Article 4 in "Cai Shui [2007] No. 90" shall be as follows:

 (1) "Long-term foreign contracting contract" refers to the foreign contracting project whose construction period is more than one year.

 (2) "Equipment" refers to the commodities as mentioned in Chapters 84, 85 and 87 in the Import and Export Duty Regulation.

 (3) "construction material" refers to the following commodities listed in the Customs Import and Export Tariff Nomenclature: the cement under commodity code 2523 in Chapter 25, such construction materials as wooden materials, floor boards, doors and windows in Chapter

44, plastic tube and wall products under commodity codes 3917 and 3918 in Chapter 39, the stone materials, cement products and asbestos products in Chapter 68, porcelain bricks, cannulas, tiles, porcelain sanitary products in Chapter 69, steel products in Chapter 73, as well as aluminum profiles and wires under the commodity codes 7604 through 7605 in Chapter 76.

4. The original rebate rate shall be applied to Chinese products and labor service purchased by foreign embassies, consulates and the diplomatic representatives thereof in China, China-made equipments according with the rebate condition purchased by foreign-funded enterprises, and machinery and electric products which domestic enterprises purchased through international public bidding with the fund from foreign governments and international financial organizations or the machinery and electric products the supply of which has been won through bidding by foreign enterprises and subcontracted to domestic enterprises.

Ministry of Finance
 State Administration of Taxation
July 10, 2007