Circular of the Ministry of Finance and the State Administration of Taxation on Implementing the Administrative Measures for Tax Exemption, Offset and Refund of Self-Running (Entrusted) Exporting Goods by the Producing Enterprises with Import and Export Operation Right

Circular of the Ministry of Finance and the State Administration of Taxation on Implementing the Administrative Measures for Tax Exemption, Offset and Refund of Self-Running (Entrusted) Exporting Goods by the Producing Enterprises with Import and Export Operation Right

Cai Shui Zi [1997] No. 50

May 21, 1997

The financial departments (bureaus) and the Offices of the State Administration of Taxation at all provinces, autonomous regions, municipalities directly under the Central Government and cities specifically designated in the state plan,

With the purpose of promoting the reform of foreign trade system, expanding self-running or entrusted export by the producing enterprises, according to the spirit of the Circular of the State Council Concerning Measures for Applying Tax Exemption, Offset, Refund to Goods Exported by Production Enterprises or Authorized Agencies Thereof (Guo Fa [1997] No. 8), this Circular is hereby issued as follows:

I. The administrative measures for "tax exemption, offset and refund" shall apply to all the self-produced and self-running or entrusted exporting goods by the producing enterprises with import and export operation right, unless otherwise provided.
The producing enterprises with import and export operation right (hereinafter referred to as the producing enterprises) as mentioned in this Circular shall refer to the domestic-invested producing enterprises with import and export operation right, and foreign investment enterprises, and the producing group companies with import and export operation right approved and established after January 1, 1994. These Measures shall also apply to all the internally established import and export companies (departments) of the producing enterprises and producing group companies with import and export operation right. The Offices of the State Administration of Taxation at all provinces, autonomous regions, municipalities directly under the Central Government and cities specifically designated in the state plan shall compile the enterprise list to implement the measures for "tax exemption, offset and refund" within the jurisdiction by levels, and file to the Ministry of Finance and the State Administration of Taxation for record before June 30.
The exporting goods by foreign investment enterprises approved and established before December 31, 1993 shall be subject to the currently effective exemption measures, and those approved and established after January 1, 1999 shall be subject to these measures.
The self-produced products as mentioned in this Circular shall refer to the goods (including the dispersedly processed products and collaboratively produced products) processed and produced or entrusted processed and produced by the enterprise, with the raw and auxiliary materials purchased by the producing enterprise.
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