Tax-Special Subject on non-stop Production Transformation of Incoming Materials Processing Enterprises.

 

Issues on the Import Taxation with respect to the Incoming Materials Processing and Assembling Factories being transformed to Legal-person Enterprises
General Administration of Customs Announcement (2009) No. 62


By the State Council's approval, the specific scope and procedures of the establishment by the incoming materials processing and assembling factories of a foreign-invested legal-person enterprise with duty-free imported non-price equipment as a contribution provided by foreign investors are as follows:

  • Foreign-invested enterprises should apply to the competent Customs for tax reduction or exemption one-off before June 30, 2011 for the non-price equipments enjoying the above-mentioned tax preferential policy.

  • The declared amount of the non-price equipments as a contribution being applying to the Customs for tax reduction and exemption shall not exceed the amount of the declared amount when importing, and will be included in the total investment of foreign-invested legal-person enterprises.

  • Examination and the approval procedures of the tax reduction and exemption of the non-price equipments as the contribution under the relevant policy will be incorporated in the management of the "Tax Reduction and Exemption Management System".
  • When applying to the Customs for the reduction and exemption of the non-price equipments, foreign-invested legal-person enterprises shall go through the approval and declaration formalities in accordance with the regulations set out in this announcement.

This announcement was effective since September 16, 2009.

Issues on the Import Taxation with respect to the Incoming Materials Processing and Assembling Factories being transformed to Legal-person Enterprises
Cai Guan Shui [2009] No.48


To promote the transformation of incoming materials processing enterprises, the Ministry of Finance issued the following circular by the State Council's approval on July 16, 2009 :

  • From July 1, 2009 to June 30, 2011, if the incoming materials processing factories establish a legal-person enterprise using the duty-free imported non-price equipments provided by foreign investors, the non-price equipments, which have made the processing trade manual record before December 31, 2008, and now still in customs supervision and declaration of imports before June 30, 2009, will be exempted from the import tariffs and import value-added tax.

  • Establishing a legal-person enterprises using the non-price equipments as a contribution which are newly recorded on January 1, 2009 and beyond, as well as recorded before December 31, 2008 but declared of importation on July 1, 2009 and beyond should be imposes tariff, except for the newly established legal-person enterprise engaging in industries encouraged by the state or the preferential industrial foreign investment projects in central and western regions.

This regulation was effective since July 16, 2009.

Guiding Opinions on fully Utilizing the Industrial and Commercial Functions to fully Support the ¡°Three incomings and one supplementation" Enterprises¡¯ Transformation and Upgrading.

Yue Gong Shang Qi Zi (2009) No.317


To effectively implement the important policy decisions of the provincial committee and government£¬to fully support the ¡°Three Incomings and One Supplementation" enterprises¡¯ transformation and upgrading£¬the Guangdong Provincial Administrative Bureau of Commerce and Industry, considering the industrial and commercial administrative functions, regulated on July 7, 2009 :

  • to allow the ¡°Three Incomings and One Supplementation" enterprises to transform and register as all kinds of legal-person enterprises, to broaden means of their access to legal-person qualification.

  • to allow the award of the enterprise legal person business license to the ¡°Three Incomings and One Supplementation" enterprises during the transformation period, before they go through the relevant pre-approval license procedures.
  • to support the ¡°Three Incomings and One Supplementation" enterprises to transform without interruption of operation
  • to allow the ¡°Three Incomings and One Supplementation" enterprises to use their original names to protect their brands after transformation registration.
  • to soften the funding restriction in the transformation registration of the ¡°Three Incomings and One Supplementation" enterprises to lower their transformation costs.
  • to simplify the registration procedures of the ¡°Three Incomings and One Supplementation" enterprises¡¯ transformation and provide high quality and efficient services.

The above-mentioned regulations were effective since July 7, 2009.

Operating Opinions on the non-stop production transformation of the incoming materials processing enterprises in Shenzhen to foreign-invested enterprises
Shen Fu Ban [2008] No.91


To support and encourage the non-stop production transformation of the incoming materials processing enterprises which comply with the national industrial policy and the industrial development direction of the City to foreign-invested legal-person enterprises£¬the General Office of Shenzhen Municipal People's Government formulate these operating opinions in August 28, 2008.

  • For those enterprises which plan to transform in the same registered address, allowing the two enterprises with different names and nature before and after the transition to co-exist at the same site in six months.

  • The industrial and commercial department shall proceed with the industrial and commercial registration by trade and industry sector¡¯s approval of the newly established foreign-invested enterprises in transition and other data such enterprises need to submit.
  • The Customs will allow the foreign-invested enterprise after transformation and the original incoming materials processing enterprise to carry out export and import business at the same time.
  • If the foreign-invested enterprises after transformation use the original incoming materials processing enterprises¡¯ equipments as the registered capital, the trade and industry sector, foreign exchange management department and industrial and commercial department should allow their equipments as the registered capital contribution in accordance with relevant provisions.
  • Those certificates which the original incoming materials processing enterprises have obtained, such as the environmental protection standards qualification, legal capacity certificate awarded by trade and industry sector should be treated as replacement in relevant departments within its validity period if the business¡¯s relevant content has not change.
  • The transformation enterprise should go through all the cancellation procedures within six months after the date of the approval of the establishment of the foreign-invested enterprise.

These opinions were effective since August 28, 2008.

Operating guidance on the non-stop production transformation of the incoming materials processing enterprises

Yue Wai Jing Mao Jia Zi [2008] No.7


To support and encourage the incoming materials processing enterprises which comply with the national industrial policy to transform to foreign-invested enterprises with independent legal qualification, or other type of enterprises and standardize the management of such enterprises, so as to adapt to the requirements of policy adjustments, 11 departments including the Foreign Economic and Trade Office formulate the following operating guidance in June 6, 2008.

  • Basic Procedures of conducting the "transformation" formalities: the parties who signed the incoming materials processing agreement sign the termination agreement or early termination agreement--apply to foreign trade and economic department--go through all the approval and registration formalities of the establishment of a new enterprise (including foreign trade and economic department, Customs, industrial and commercial department, foreign exchange management, taxation, finance, inspection and quarantine, environmental protection, fire fighting and labor, etc.)--go through the imported equipment and contract cancellation formalities for the incoming materials processing enterprises in departments such as the Customs--submit to the foreign trade and economic department for approval--conduct all the termination and cancellation procedures of the incoming materials processing enterprises in the relevant administrative departments (including the department in charge of foreign trade, Customs, industry and commerce, foreign exchange management, taxation, finance, inspection and quarantine, environmental protection, fire fighting and labor).

  • For those enterprises which plan to transform in the same registered address, the foreign trade and economic department will allow the two enterprises with different names and nature before and after the transition to conduct the relevant procedures within six months.

  • The industrial and commercial department shall proceed with the industrial and commercial registration by trade and industry sector¡¯s approval of the newly established foreign-invested enterprises (or other types of enterprises) and allow them to go though the relevant formalities within six months.

  • After registration in the Customs, the new enterprises should go through the imported equipment cancellation and contract termination formalities of the original processing enterprises in the competent Customs within three months (subject to extension in special cases upon the approval of the competent Customs.

  • The foreign trade and economic competent department will no longer accept the new contract of the original company after the transformation of the incoming materials processing enterprises. Enterprise management categories and capacity certificate are to be recognized after the approval of the Customs and foreign trade and economic competent department in cases in which enterprise¡¯s basic information has not significantly changed.

  • Those certificate which original processing with supplied materials enterprises have obtained, such as environmental and fire protection standards qualification, production capacity certificate awarded by the foreign trade and economic competent department, relevant license, qualification certificate evidencing that the business enterprise scope, scale of production, plant structure have not changed after transformation should be provided convenient services by relevant departments within its validity period.

These regulations were effective since June 6, 2008.


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BM Intelligence (bmi) was established in 1995, and was listed on the Hong Kong Stock Exchange in 2001.It became the first listed company in financial advisory filed in China. After listing, bmi rapidly added the assessment, funds, financial public relations, stock registration and other teams and set up BM Intelligence Group to provide customers with one-stop financial professional services.

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bmi Consultants (Shenzhen) Co., Ltd. (bmi Shenzhen)

As a wholly owned subsidiary of bmi, bmi Shenzhen is responsible for the Group's businesses in China. We are based in mainland China, relying on the Group's international background, depending on a strong team of professionals and business network to provide customers with a one-stop professional services in the financial field, including company secretaries, tax advisers, investment and financial consultancy, translation services and statutory authentication and other supporting services. Since its establishment, it has contributed to dozens of companies from home and abroad to complete integration and acquisition of corporate assets; successfully assisted more than 30 enterprises to list and finance overseas; provided one-stop service for dozens of overseas clients to invest in China; provided one- stop service for hundreds of domestic customers to invest overseas. We comprehensively analyze the geographic and industry factors to provide customers with the best solution to help customers achieve their development goals.

Services contents of Shenzhen Branch

Current Top referrals: acting as agent to provide the services of the transformation from the incoming materials processing enterprise to legal-person enterprise

¡ùTax Consultancy: tax agency, tax consultancy, financial advice, customs consultancy

¡ùCompany Secretary: accounting tax, domestic and foreign company registration, change, cancellation

¡ùVerification Services: internal verification, annual inspection, tax verification report; domestic and foreign auditing

¡ùInvestment and Financing Advice: enterprise private financing, IPO financing consultancy

¡ùSupporting Services: financial translation, assets evaluation, legal advice


Service Features


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