China waives import VAT and duties related to capital equipment components

10 January 2018


On January 8, six Chinese government departments led by the Ministry of Finance issued a joint announcement on the adjustment of import tax policy major technical equipment and its components.  This is an adjustment to the policy launched in 2009, which aims to support the development of China’s major equipment industry by improving access to overseas sources of essential materials, parts and components by exempting them from duties and VAT.  This policy is part of the major MadeInChina 2025 policy stream.

Though the announcement covers other areas also, British manufacturers will be most interested in its second section, a 51 page list of the types of major equipment covered by the policy, and the thousands of components and materials which are tariff and VAT-free as a result.  

The components and materials are for use in the following major equipment types (each of which has further subcategories):

  • Large scale, clean, high-efficiency power generation equipment
  • High- and ultra-high voltage power transmission equipment
  • Large-scale petrochemical and chemical process equipment
  • Large-scale coal-processing equipment
  • Large-scale metal processing equipment packages
  • Large-scale mining equipment
  • Large ships and marine engineering equipment
  • High-speed rail and urban-transit equipment
  • Large-scale environmental and resource-utilisation protection equipment
  • Large-scale construction machinery and infrastructure equipment
  • Major engineering automation and control systems and key precision test equipment
  • Advanced textile equipment
  • Advanced high-powered agricultural equipment
  • Electronic Information and Biomedical Equipment
  • Civil aircraft and aero-engines, airborne equipment
  • Basic parts of major technical equipment

Click here for a copy of the original Chinese document.

The original announcement in Chinese can be found on the Ministry of Finance website here

If you would like to check if your products are included on the Chinese list, contact our China specialist Matthew Grandage @ChamberIntChina.


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