The Ministry of Finance, Ministry of Ecology and Environment, Ministry of Commerce, General Administration of Customs and State Taxation Administration recently issued a joint notice, clarifying the temporary import repair-related tax policies to be piloted in the China (Shanghai) Free Trade Pilot Zone.
The notice specifies that within the special customs supervision areas of the China (Shanghai) Free Trade Pilot Zone (including the Lingang New Area zone), goods temporarily allowed from abroad for repair in the pilot area will be bonded. Goods that are repaired and then re-exported will be exempt from customs duties, import value-added tax and consumption tax.
For goods that are not re-exported but instead sold domestically, import procedures must be followed as required, and import duties, import value-added tax and consumption tax will be levied according to the actual inspection status of the repaired goods.
