Announcement on the Implementation of the Catalogue of Industries Encouraging Foreign Investment (2022 Edition)

　　Decree No. 52 of the National Development and Reform Commission and the Ministry of Commerce issued the Catalogue of Industries Encouraging Foreign Investment (2022 Edition) (hereinafter referred to as the Catalogue (2022 Edition)), which will come into force on January 1, 2023. In accordance with the Notice of the State Council on Adjusting the Tax Policy on Imported Equipment (GF [1997] No. 37, hereinafter referred to as “GF No. 37 Document”) and relevant provisions, the relevant matters under implementation are hereby announced as follows:

　　I. From January 1, 2023, for foreign-funded projects (including capital increase projects, the same below) within the scope of the Catalogue (2022 Edition), self use equipment imported within the total amount of investment, and technologies, accessories and spare parts imported with the aforementioned equipment according to the contract, except those listed in the Catalogue of Imported Commodities Not Exempted from Tax for Foreign funded Projects and the Catalogue of Major Technical Equipment and Products Not Exempted from Tax, In accordance with No. 37 Document issued by the State Council, No. 103 Announcement of the General Administration of Customs in 2008 and other relevant provisions, customs duties shall be exempted and import value-added tax shall be collected according to regulations.

　　II. In the Confirmation of Domestic and Foreign funded Projects Encouraged by the State (hereinafter referred to as the “Project Confirmation”) and other relevant documents issued by the competent department in accordance with the Catalogue (2022 Edition), the applicable industrial policy item codes and project types for foreign-funded projects are:

　　（I） The codes of the entries listed in the “National Catalogue of Industries Encouraging Foreign Investment” (hereinafter referred to as the “National Catalogue”) consist of “AB” and three digits. For example, if a foreign-funded project is subject to the relevant requirements of Article 1 of the “National Catalogue”, the applicable industrial policy items and codes are “planting, development and production of woody edible oils, spices and industrial raw materials (AB001)”.

　　（II） The codes of the entries listed in the “Catalogue of Foreign Invested Advantage Industries in Central and Western China” (hereinafter referred to as the “Catalogue of Central and Western China”) consist of “HA” and four digits. For example, if a foreign-invested project is subject to the relevant requirements of Article 10 of Shanxi Province in the “Catalogue of Central and Western Regions”, the applicable industrial policy item and code is “Comprehensive utilization of coke by-products (HA1410)”.

　　（III） Foreign funded projects are subject to the items listed in the “National Catalogue”, and the “nature of the project” refers to “foreign investment” or “domestic products of foreign funded projects”; The items listed in the “Catalogue of Central and Western Regions” are applicable, and the “nature of the project” refers to “advantageous industries in the central and western regions with foreign investment” or “domestic products with foreign investment projects”.

　　III. For foreign-funded projects that have been approved, approved or filed before January 1, 2023 (excluding that day, the same below) (subject to the date of project approval, approval or completion of filing, the same below), if they fall within the scope of the Catalogue (2022 Edition), the relevant project units can go through the formalities of tax reduction and exemption verification and confirmation with the customs according to the provisions if they obtain the Project Confirmation and other relevant documents issued by the competent department.

　　In order to maintain the continuity of the policy, for foreign investment projects approved, approved or filed before January 1, 2023, which fall within the scope of the Catalogue of Industries Encouraging Foreign Investment (2020 Edition) (hereinafter referred to as the Catalogue (2020 Edition)), if the project unit obtains the Project Confirmation and other relevant documents issued by the competent department before January 1, 2024, it can go through the formalities of tax reduction and exemption verification and confirmation with the customs according to the provisions.

　　IV. For foreign-invested projects under construction that do not fall within the scope of the Catalogue (2020 Edition), but fall within the scope of the Catalogue (2022 Edition), imported self use equipment and technologies, accessories and spare parts imported with the aforementioned equipment according to the contract, the preferential import tax policy shall be enjoyed with reference to Article 1 of this Proclamation. However, if the imported equipment has been taxed, the tax collected shall not be refunded.

Article source：customs head office