Manufacturing and production service businesses in the newly launched Shanghai Free Trade Zone (FTZ) will get their imported equipment duty-free, China's finance, customs and taxation regulators announced on Thursday.
The exemption will be applied to such enterprises' imports of machines, equipment and other necessary goods for manufacturing, 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 free trade zone 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.
Meanwhile, bonded exhibition and trade platforms may be set up in specific areas in the FTZ under the guidance of the import duty policy.
Bonded areas in Shanghai Waigaoqiao, Yangshan and Pudong Airport will keep their current duty policies. The new duty policy becomes effective on Sept. 29.
Source: Xinhua
