Our trainee reporter Zhao Chenyi
Over the past 20 years, China’s total economic output has risen from No. 6 to No. 2 in the world, its trade in goods has risen from No. 6 to No. 1 in the world, its trade in services has risen from No. 11 to No. 2 in the world, its utilization of foreign capital has steadily ranked first among developing countries, and its foreign direct investment has risen from No. 26 to No. 1 in the world.
The 20 years since China’s entry into WTO are not only 20 years of rapid economic development and significant improvement in people’s living standards, but also 20 years of deep integration, shared opportunities and common growth between China and the world.
As an important means of national macro-control, import tax policy has played a positive role in supporting scientific and technological innovation, industrial development, social undertakings, consumption upgrading, energy resources and so on. Especially since the 18th National Congress of the Communist Party of China, the import tax policy has given full play to its role in macroeconomic regulation and control, actively played its advantages of connecting China’s international double circulation and coordinating two markets and two resources, focused on promoting high-quality economic and social development, and made positive contributions to accelerating the construction of a new development pattern and promoting high-quality economic and social development.
actively clean up and adjust import tax policies
In the 1990s, China’s tax reduction and exemption regulations were numerous. In order to meet the needs of the construction of the socialist market economic system and China’s entry into WTO, China cleaned up and adjusted its import tax policy three times.
At the end of 1993, the State Council approved the first clean-up of policy tariff reduction and exemption documents. As many as 157 documents were involved in the clean-up of preferential tax reduction and exemption policies. Finally, 27 documents were abolished at the end of 1993, 98 documents were cancelled step by step, and 9 tax reduction and exemption provisions were adjusted. In 1994 and 1995, the Ministry of finance took the lead in clearing up the provisions on tariff and import tax reduction and exemption twice.
Before and after China’s entry into WTO, in order to participate in international competition and international economic cooperation with a more open attitude, the Ministry of finance, together with relevant departments, comprehensively cleaned and standardized the import tax policy twice, so as to further lay the foundation for the establishment of a unified, standardized, fair and reasonable import tax policy system. In 2000, the Ministry of finance took the lead in cleaning up 13 import tax policies that expired that year. In 2002, in response to the new requirements after China’s accession to the WTO, the Ministry of finance took the lead in adjusting some import tax policies. At the same time, it was made clear that in the future, import tax reduction and exemption projects will not be accepted and approved. If import tax reduction and exemption is really necessary, the Ministry of finance, together with relevant departments, will study and put forward opinions and report to the State Council for approval.
Zhang Xiaotao, Dean and doctoral supervisor of the school of international economics and trade of the Central University of Finance and economics, believes that according to the requirements of the WTO, China has taken the initiative to clean up and standardize a large number of relevant regulations involving import taxes, promoted the reform of foreign trade liberalization and facilitation, and laid an important foundation for building the basic framework system of a new open economy.
fully promote the construction of modern industrial system
Modern industrial system is an important support for building a modern power. Huang Peng, President and researcher of Shanghai WTO affairs consulting center, told reporters that the essence of import tax policy is to optimize the allocation of production factors in China and foreign markets. Its core function is to serve as a bridge between Chinese and foreign markets and resources. While attracting high-quality resources, it also introduces competition, so as to promote China’s industrial development, improve total factor productivity and expand employment, Improve national welfare.
China Resources Microelectronics Limited(688396) as an integrated circuit enterprise, it has the integrated operation ability of the whole industrial chain such as chip design, wafer manufacturing, packaging and testing. Especially in the field of power semiconductors, the performance and technology of many products of the company are in a leading position in China.
“The development of the company is inseparable from policy support. Since 2002, the company has continued to enjoy preferential import tax policies for integrated circuit manufacturers,” China Resources Microelectronics Limited(688396) the person in charge told reporters, “Through the price transmission mechanism, the tax reduction bonus is shared by manufacturing enterprises, distribution enterprises and consumers. Import tax relief provides an important support for enterprises’ better survival and development.”
“Since China’s entry into WTO, in order to better promote China’s industrial development, the import tax policy system has been adjusted, optimized and enriched.” Huang Peng stressed.
In order to support industrial transformation and upgrading, China has implemented import tax policies for strategic emerging industries such as major technical equipment, integrated circuits, new displays and aviation. Import tariff and import value-added tax shall be exempted for key parts and raw materials that Chinese enterprises need to import in order to develop and manufacture major technical equipment in 16 key areas specified by the State Council. Import tariff will be exempted for the self-use productive raw materials and consumables imported by integrated circuit manufacturers and new display device manufacturers that cannot be produced in China or whose performance can not meet the demand. The value-added tax on imported production equipment is allowed to be paid in installments, so as to accelerate the growth of a new generation of information technology. China’s airlines and maintenance units shall be exempted from import tariffs on aviation equipment for maintenance that cannot be produced in China or whose performance cannot meet the needs, so as to promote the development of China’s civil aviation transportation, maintenance and other industries.
In order to enhance the international competitiveness of agricultural and forestry products, import value-added tax shall be exempted for imported seeds (seedlings), breeding livestock (poultry), fish species (seedlings) and wild animals and plants, tariff and import value-added tax shall be exempted for endangered wild animals and plants returned by foreign governments (regions) and Hong Kong and Macao Special Administrative Regions, and import value-added tax shall be exempted for fish meal, peanut oil residue cake, alfalfa and other feeds, Effectively support the development of agricultural modernization.
In addition, in order to expand the use of foreign capital, introduce foreign advanced technology and equipment, and promote the adjustment of industrial structure and technological progress, import equipment for Chinese investment projects and foreign investment projects encouraged by the State shall be exempted from tariffs within the specified scope; In order to improve the energy production, supply, storage and marketing system, strengthen China’s oil and gas exploration and development, support the import and utilization of natural gas, implement the import tax policy for the exploration, development and utilization of energy resources, and exempt from import tariff and import value-added tax for equipment and other commodities that cannot be produced or whose performance cannot meet the demand in China and are directly used in exploration and development operations; The value-added tax on natural gas import shall be refunded in proportion.
In response to the international financial crisis, the State Council successively issued plans in 2009 to adjust and revitalize ten key industries such as equipment manufacturing and electronic information. Import tax policies are also actively supported.
In accordance with the plan for the adjustment and revitalization of the equipment manufacturing industry, the Ministry of Finance implemented the method of collecting the import tariff and import value-added tax paid by Chinese enterprises on some key parts and components imported by Chinese enterprises for the development and manufacture of these equipment and raw materials that cannot be produced in China and then returning them and converting them into national capital, It was adjusted to be directly exempted from tariff and import value-added tax, so as to further release the vitality of enterprises. By 2010, more than 10 special tax policies have been issued, including new textile machinery and full face tunnel boring machine. More than 200 equipment manufacturing enterprises benefited from the policy.
Flat panel display industry has a core, basic and strategic position in China’s electronic information industry. Affected by the international financial crisis, the flat panel display industry is facing great difficulties and production capacity is declining. According to the plan for the adjustment and revitalization of the electronic information industry, the Ministry of Finance extended the preferential import tax policy for LCD panel manufacturers to the end of 2011, adjusted the duty-free list of imported goods according to the actual needs of industrial development, and expanded the scope of application of the policy to new display devices such as liquid crystal, plasma and organic light-emitting diode panels, It has injected a booster into industrial development.
Zhang Xiaotao said that the active supporting adjustment of import tax policies is conducive to reducing the import prices of equipment and products in relevant industries, reducing the import burden of enterprises, benefiting enterprises, and playing a positive role in promoting independent R & D, independent innovation and improving the core competitiveness of Chinese enterprises.
After the outbreak of covid-19 pneumonia in 2020, in view of the fact that foreign trade export enterprises are faced with the imposition of import tax due to the force majeure of the epidemic, the Ministry of Finance quickly issued a policy that no import tariff, import value-added tax and consumption tax will be levied on the goods declared for export in 2020 but returned to the country in their original state within one year due to the force majeure of the epidemic; The export duties collected at the time of export shall be refunded.
Huang Peng said, “the timely introduction and adjustment of the above import tax policies fully reflect the flexibility and accuracy of China’s import tax policy system in dealing with major events and emergencies, alleviate the difficulties of enterprises and help enterprises reduce costs.”
Zhang Xiaotao pointed out that a reasonable import tax policy system is conducive to a country’s access to the benefits of global economic division of labor, and can also promote China’s industrial development. China’s import tax policy system has been adjusted according to the national economic development stage, multilateral trading system, regional economic integration, economic fluctuations, epidemic impact and other political and economic situations. It has raised the standard international economic and trade rules, achieved security and development by reducing import tax, obtained the efficiency of global division of labor, further promoted China’s industrial competition and accelerated independent innovation, Positive efforts have been made to form a new pattern of open economy.
strengthen the foundation and support the development of scientific and technological innovation
Scientific and technological innovation is the strategic support for improving social productivity and comprehensive national strength. The import tax policy system serves the needs of the construction of a national scientific and technological power, focuses on the field of science and technology, and supports the acceleration of scientific and technological self-reliance.
In order to build an import tax policy platform to support scientific and technological innovation, China is exempt from import tariff, import value-added tax and consumption tax for scientific research, scientific and Technological Development and teaching supplies imported by scientific research institutions and schools that cannot be produced or whose performance cannot meet the demand. Relevant scientific research institutes, universities, state key laboratories, national industrial innovation center, national technological innovation center, national enterprise technology center, national clinical medicine research center and national engineering research center can enjoy the policy.
In order to promote the high-quality development of science popularization, the import of science popularization film and television works required by science and technology museums, observatories and other units shall be exempted from import tariff and import value-added tax.
In addition, the import tax policy for the major import and export of major technologies of the people’s mouth science and technology has been implemented, and import duties and import value-added tax have been exempted from imported equipment, key components and raw materials needed for the special projects such as high-end CNC machine tools and basic manufacturing equipment, major new drugs, AIDS and viral hepatitis.
Huang Peng said that the key focus of the innovation driven development strategy should eventually end at the specific industrial level and realize a virtuous cycle of innovation and development in the upstream and downstream industries. From the perspective of the implementation effect of the import tax policy, it has played an important role in accelerating the construction of a scientific and technological power, and actively implementing the strategy of rejuvenating the country through science and education and innovation driven development.
overall consideration and efficient service to social undertakings
Social undertakings are related to people’s livelihood and connect the hearts of the people. Since China’s entry into WTO, China’s import tax policy system has taken the initiative, made overall plans and coordinated the development of social undertakings.
In order to further ensure epidemic prevention and control and support overseas donations of imported protective articles, disinfection articles, ambulances, etc. urgently needed for epidemic prevention and control, on February 1, 2020, the Ministry of finance, together with relevant departments, issued an announcement after reporting to the State Council for approval, expanding the scope of duty-free imported materials and tax-free subjects in the original policy within three months from January 1, 2020, The imported materials donated for epidemic prevention and control shall be exempted from import tariff, import value-added tax and consumption tax, and the imported materials organized by the competent health department for direct epidemic prevention and control shall be exempted from import tariff.
On February 4, a Canadian company donated 500 pieces of medical protective clothing to Shanghai Ninth People’s Hospital, which became the first order to complete the tax exemption review and confirmation procedures for donated materials for epidemic prevention and control in Shanghai since the outbreak. The tax exemption amount of this batch of donated materials valued at 5000 US dollars amounted to 5607.83 yuan. Within three months, a large number of anti epidemic donated materials enjoy the tax-free policy and are continuously transported to all parts of the country through various ports such as Shanghai.
Huang Peng said that the adjustment of import tax policy has greatly promoted the donation of imported epidemic prevention materials, timely and effectively supported the donation of imported materials and the competent health authorities to actively organize and carry out epidemic prevention and control by using imported donated materials, which has become an important part of the strategic deployment of the national system for resolutely winning the epidemic prevention and control.
Since joining the WTO, in order to support the development of the pharmaceutical industry and ensure the health of the people, the import and export duties and import value-added tax that the health and Health Commission entrustment imported is exempt from import duties and value-added tax. The import value-added tax is levied on 3% of the imported anti cancer drugs and rare diseases, and the purchase cost of imported drugs is effectively reduced.
In addition, the collections imported by state-owned public welfare collection units such as museums, memorials and art galleries are exempted from import tariff, import value-added tax and consumption tax; In order to vigorously support charities, relevant materials directly used for charities and materials directly used for disaster relief are exempted from relevant import taxes, support emergency rescue in disaster areas and ensure the safety of people’s lives and property.
In order to improve the policy system of duty-free shops, China has added entry and exit duty-free shops at new large international aviation hubs, large cruise ports, Hong Kong Zhuhai Macao Bridge of great political and economic significance, so as to promote the orderly competition and healthy development of the duty-free industry and further serve the upgrading needs of Chinese consumption. At the same time, strengthen the basic research on the tax-free industry, and entrust colleges and universities to carry out international comparative research on the tax-free industry, so as to provide reference for the improvement of China’s tax-free policy.
In order to support the healthy development of cross-border e-commerce, China has formulated cross-border e-commerce retail import tax policies, increased commodity quotas according to the development of business types, enriched the categories of listed commodities, standardized the regulatory requirements in the notes and endnotes of the list, and promoted the healthy development of new business types of cross-border E-commerce. In addition, it also cooperates with the expansion of the pilot scope of cross-border e-commerce retail import and the pilot of cross-border e-commerce retail import of drugs.
(China Financial News)
