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Manufacturers in zone to import machines duty-free
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Manufacturing and production service businesses in the newly launched free trade zone in Shanghai will get their imported equipment duty-free, China’s finance, customs and taxation regulators said yesterday.
The exemption will be applied to such companies’ imports of machines, equipment and other necessary goods for production, according to a new tax policy released by the Ministry of Finance, the General Administration of Customs and the State Administration of Taxation.
Goods produced and processed in the FTZ and sold to the domestic market through indirect means still have to pay value-added tax and consumption tax.
Non-manufacturing-purpose goods imported by production service enterprises and those regulated on duty are also not duty-free, under the policy.
Bonded exhibition and trade platforms may be set up in specific areas in the zone under the import duty policy.
Bonded areas in Shanghai Waigaoqiao, Yangshan and Pudong airport will keep their current duty policies.
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