[Supporting policies] Haikou Customs "Interim Measures for the Implementation of Customs Tax Collection and Administration on Domestic Sales of Value-added Goods Processed in Yangpu Bonded Port Area"

Article 1 In order to implement the "Overall Plan for the Construction of Hainan Free Trade Port", give full play to the pioneering role of Yangpu Free Trade Port, and standardize the implementation of the tax collection and management of the domestic sales of value-added goods processed in Yangpu Free Trade Port, these measures are formulated in accordance with the "Customs Law of the People's Republic of China", "Regulations of the Customs of the People's Republic of China on the Supervision of Yangpu Free Trade Port", "Interim Measures for the Collection and Management of Taxes on Domestic Sales of Value-added Goods Processed in Yangpu Free Trade Port" (Department Tax Letter [2021] No. 131) and other laws, regulations and rules.
Article 2 Before the whole island is closed, the customs shall exempt the import tariffs for the goods produced by encouraged industrial enterprises that do not contain imported materials or contain imported materials and the value-added of the goods processed in Yangpu Free Trade Port exceeds 30% (including 30%, the same below), and the goods that enter the domestic area through Yangpu Free Trade Port shall be exempted from import tariffs, and the value-added tax and consumption tax at the import stage shall be collected according to the regulations (hereinafter referred to as the "processing value-added exemption policy"), and its implementation and management shall be subject to these measures.
Article 3 Encouraged industrial enterprises that enjoy the policy of exemption of processing value-added tariffs shall meet the following conditions:
(i) Registered in Yangpu Free Trade Port Area and have independent legal person status;
(ii) Mainly engaged in industrial projects specified in the catalogue of encouraged industries of Hainan Free Trade Port, and the main business income accounts for more than 60% (including 60%) of the total enterprise income;
(iii) Registered with the Management Committee of Yangpu Economic Development Zone;
(iv) Connect the enterprise production data with the "Yangpu Public Information Service Platform" (hereinafter referred to as "Yangpu Public Service Platform") in accordance with the methods and data standards approved by the customs, and the information and data submitted shall be true, accurate, valid and traceable, and comply with the requirements of customs tax collection and subsequent supervision.
Article 4 The Management Committee of Yangpu Economic Development Zone shall register the encouraged industrial enterprises in Yangpu Free Trade Port Area and implement the "one enterprise, one household" management system. The registered information includes enterprise information, the specific items in the catalogue of encouraged industries to which the enterprise's main business belongs, product names and descriptions (such as main materials, processing technology overview, etc.). The filing information is pushed to the customs through the Yangpu public service platform of the China (Hainan) International Trade "Single Window".
Article 5 For domestic sales goods containing imported materials that enjoy the processing value-added tariff exemption policy, the processing value-added should exceed 30% (inclusive). The specific calculation formula (hereinafter referred to as the formula) is:
〔(Domestic sales price of goods out of the zone-∑Price of imported materials from abroad-∑Price of materials purchased outside the zone within the country)/(∑Price of imported materials from abroad'∑Price of materials purchased outside the zone within the country)〕×100%≥30%
The determination of the relevant prices in the calculation formula shall refer to the relevant provisions of the "Measures for the Customs to Determine the Dutiable Price of Domestic Sales Bonded Goods" (General Administration of Customs Order No. 211) and the "Measures for the Customs to Determine the Dutiable Price of Imported and Exported Goods" (General Administration of Customs Order No. 213). Among them:
(i) The price of goods sold out of the zone for domestic sales is determined based on the transaction price of the goods manufactured and processed containing imported materials sold by the registered enterprise to the domestic and foreign countries;
(ii) The price of imported materials from abroad is determined based on the transaction price of the materials imported from abroad by the registered enterprise, and should include the transportation and related costs and insurance premiums before the materials are unloaded at the domestic import location; (iii) The price of materials purchased outside the domestic zone is determined based on the transaction price of the materials purchased from the domestic and foreign countries, and should include the transportation and related costs and insurance premiums of the materials to the Yangpu Free Trade Port Area. (iv) This policy applies to the domestic sales of goods with an overall value-added of more than 30% (inclusive) from deep processing in the Yangpu Free Trade Port Area.
In the calculation formula, the price of imported materials from abroad is the sum of the prices of imported materials invested by each processing enterprise in the zone; the price of materials purchased outside the domestic zone is the sum of the materials purchased outside the domestic zone invested by each processing enterprise in the zone.
Processing enterprises in the zone should be encouraged industrial enterprises in the Yangpu Free Trade Port Area registered by the Management Committee of Yangpu Economic Development Zone.
Article 6 When goods with imported materials and parts with a value-added of more than 30% (inclusive) are sold domestically, they shall not be exempted from import tariffs if any of the following circumstances exist:
(i) The imported materials and parts are commodities subject to tariff quota management;
(ii) They have only undergone one or more minor processing or treatments such as mixing, repackaging, splitting, combined packaging, sharpening, simple grinding or simple cutting; (iii) Other goods that should be subject to import tariffs in accordance with relevant regulations. Article 7 Goods that are processed without imported materials and parts and sold to domestic areas through Yangpu Free Trade Port Area can enjoy the policy of exemption from processing value-added tariffs without meeting the condition of more than 30% (inclusive) of processing value-added.
Article 8 When the relevant finished products of enterprises that meet the conditions of the processing value-added tariff exemption policy are sold domestically, enterprises in the area should log in to the "Hainan Special Applications" module of the "Single Window" of International Trade to initiate an application for registration of exemption from import tariffs for domestic sales of processing value-added goods to the "Customs Supervision Auxiliary System" (hereinafter referred to as the "Customs Supervision Auxiliary System") of the public information service platform of Yangpu Free Trade Port Area. If an enterprise applies for exemption of import tariffs on value-added processed goods, it shall accurately calculate and truthfully declare the price of goods sold domestically out of the zone and the price of imported materials and parts calculated according to the unit consumption ratio, and the price of materials and parts purchased outside the zone within the country.
Article 9 After receiving the filing application, the customs supervision auxiliary system shall logically inspect and control the data submitted by the enterprise to determine whether the processing value-added conditions are met. For the filing application that meets the conditions, the system automatically generates a confirmation number for the exemption of import tariffs on domestic sales of value-added processed goods (hereinafter referred to as the "confirmation number"), and feedbacks the filing number to the international trade "single window" enterprise end; for the filing application that does not meet the conditions, the system returns the filing application to the international trade "single window" enterprise end, and feedbacks the judgment receipt at the same time.
For different contracts and batches of value-added processed goods of the same filing enterprise whose prices for domestic sales out of the zone, prices for imported materials from abroad, and prices for materials and parts purchased outside the zone within the country have not changed, the confirmation number can be reused; if any of the above three elements changes, a new confirmation number must be applied for.
Article 10 For goods containing imported materials and with processing value-added exceeding 30% (inclusive), if they are sold domestically outside the zone, the importing enterprises outside the zone shall, with the confirmation number, handle the import declaration procedures for domestically sold goods through the "single window" of international trade. The import declaration form shall be filled in according to the following requirements and declared according to the actual inspection status of the goods.
"Customs of declaration place" should be filled in with "Yangpu Port Customs (code is 6408)";
"Entry customs type" should be filled in with "Yangpu Port Customs (code is 6408)";
The associated registration number should be filled in as: confirmation number of domestic sales of value-added processed goods exempt from import tariffs, and the confirmation number rule is: A'4-digit customs code'last 2 digits of the year'5-digit serial number (including numbers and letters);
The nature of tax exemption should be filled in as: 496 ("value-added processed goods containing imported materials");
The supervision method should be filled in as: "General trade" (code: 0110);
The tax exemption method should be filled in as: "Special case" (code: 4);
The filling specifications of other items and import supervision requirements shall be handled in accordance with the current relevant regulations. Article 11 For goods containing imported materials but with processing value-added less than 30% that are sold domestically outside the zone, they shall enjoy the current policy of selective tariff collection for domestic sales in the comprehensive bonded zone. Enterprises may apply for tariff collection based on their corresponding imported materials or actual inspection status, and import value-added tax and consumption tax shall be collected in accordance with regulations. For those who choose to collect tariffs based on imported materials, they shall also pay the interest on deferred tax. If the corresponding imported materials meet the relevant origin regulations of the General Administration of Customs, they may apply for the agreed tariff rate or preferential tariff rate. The relevant declaration requirements and regulatory requirements shall be implemented in accordance with the current regulations.
Article 12 For goods produced by encouraged industrial enterprises in the Yangpu Bonded Port Area that do not contain imported materials and are registered with the Management Committee of the Yangpu Economic Development Zone, if they are sold domestically outside the zone:
Enterprises that declare to leave the zone based on the actual inspection status shall be exempted from import tariffs, and import value-added tax and consumption tax shall be collected in accordance with regulations. Domestic enterprises outside the zone shall handle the import declaration procedures for domestic sales goods out of the zone through the "single window" for international trade. The import declaration form shall be filled in according to the following requirements:
"Customs of the place of declaration" shall be filled in with "Yangpu Port Customs (code is 6408)";
"Entry customs type" shall be filled in with "Yangpu Port Customs (code is 6408)";
The associated registration number shall be filled in as: confirmation number of domestic sales of value-added processed goods exempt from import tariffs, and the confirmation number rule is: B'4-digit customs area code'last 2 digits of the year'5-digit serial number (including numbers and letters);
The nature of tax exemption shall be filled in as: 497 ("excluding value-added processed goods with imported materials");
The supervision method shall be filled in as: "General trade" (code: 0110);
The tax exemption method shall be filled in as: "Special case" (code: 4).
Other items shall be filled in in accordance with the current relevant regulations as well as the import supervision requirements.
Article 13 If other matters involving tax collection and management are involved in the import of domestic sales goods, they shall be handled in accordance with the current regulations.
Article 14 Enterprises shall properly preserve production and material consumption data, and connect relevant data to the Yangpu public service platform in a complete and true manner. Customs will conduct audits on the processing value-added ratio and price, classification, origin and other tax-related elements declared by enterprises based on risk analysis.
Article 15 If it constitutes smuggling or violates customs supervision regulations, the customs shall handle it in accordance with the relevant provisions of the Customs Law of the People's Republic of China, the Administrative Penalty Law of the People's Republic of China and the Regulations on the Implementation of Customs Administrative Penalties of the People's Republic of China; if it constitutes a crime, criminal liability shall be pursued in accordance with the law.
Article 16 Haikou Customs shall be responsible for interpreting these measures.
Article 17 These measures shall be implemented simultaneously with the launch of the Yangpu Public Information Service Platform and the Haikou Customs
Information System, and shall be abolished on December 31, 2024.