Import Tax Incentive Policies for Scientific and Technological Innovation

 

 

I. Policy Background

In furtherance of implementing the strategies of revitalizing the nation through science, technology, and education and innovation-driven development, and to bolster scientific and technological innovation, tax relief measures are granted to qualified scientific and technological innovation entities from January 1, 2021 to December 31, 2025, pursuant to the Notice by the Ministry of Finance, the General Administration of Customs and the State Taxation Administration of the Import Tax Policies for Supporting Scientific and Technological Innovations during the “14th Five-Year Plan” Period (No. 23 [2021] of the Ministry of Finance, the General Administration of Customs and the State Taxation Administration), and the Notice by the Ministry of Finance, the Publicity Department of the CPC Central Committee, and the National Development and Reform Commission, et al, of the Measures for the Administration of Import Tax Policies Supporting Scientific and Technological Innovations during the “14th Five-Year Plan” Period (No. 24 [2021] of the Ministry of Finance, the General Administration of Customs and the State Taxation Administration).

II. Eligible Entities

Eligible Entity (Abbreviation)	Responsible (Approving) Authority
Research Institutions	Ministry of Science and Technology Provincial Science and Technology Offices
Higher Education Institutions	Ministry of Education
Engineering Research Centers	National Development and Reform Commission
National Enterprise Technology Center	National Development and Reform Commission
Restructured Research Institutions	Ministry of Science and Technology Provincial Science and Technology Offices
State Key Laboratories	Ministry of Science and Technology
National Engineering Research Centers	Ministry of Science and Technology
Non-Governmental R&D Institutions	Ministry of Science and Technology Provincial Science and Technology Offices
Demonstration Platforms	Ministry of Industry and Information Technology
Foreign-funded R&D Centers	Provincial Department of Commerce
Science and Education Publishers	Publicity Department of the Chinese Communist Party
National Laboratories	Ministry of Science and Technology
National Industrial Innovation Centers	National Development and Reform Commission
National Manufacturing Innovation Centers	Ministry of Industry and Information Technology
National Technology Innovation Centers	Ministry of Science and Technology
Public Libraries	Ministry of Culture and Tourism Provincial Department of Culture and Tourism
National Clinical Medicine Research Centers	Ministry of Science and Technology
Party Schools (Administrative Academies)	-

III. Incentive Content

1. Import tariffs, import VAT and consumption tax shall be exempted for scientific research institutions, technology development institutions, schools, party schools (administrative academies) and libraries importing supplies for scientific research, scientific and technological development and teaching that either cannot be domestically produced or, while producible domestically, fail to meet required performance standards.

2. Import VAT shall be exempted for books and reference materials imported by publication import entities for research institutions, schools, party schools (administrative academies) and libraries when such materials are used for scientific research and teaching purposes.

IV. Commodity Scope

The incentives apply to supplies for scientific research, scientific and technological development and teaching included in the "List of Supplies for Scientific Research, Scientific and Technological Development and Teaching Imported during the “14th Five-Year Plan” Period that Are Exempt from Import Taxes (First Group)".

The list of tax-exempt import commodity is formulated and issued under the leadership of the Ministry of Finance and is subject to dynamic adjustment.

V. Application Procedures

Qualified enterprises and institutions may choose to apply for tax exemption verification and confirmation through the China International Trade "Single Window" portal (https://www.singlewindow.cn), or "Internet plus Customs" platform (http://online.customs.gov.cn)by submitting applications to the competent Customs authority.

VI. Required Materials

1. Application Form for Tax Collection or Exemption for Imported or Exported Goods;

2. Supporting documents shall include any of the following: Institutional Legal Person Certificates, Government Agency Establishment Documents, Social Organization Registration Certificates, Private Non-enterprise Entity Registration Certificates, or Foundation Legal Person Registration Certificates;

3. Import/export contracts, commercial invoices and relevant documents with product information;

4. Other materials as required by Customs.

Tips

1. This policy remains effective from January 1, 2021 to December 31, 2025 (during the 14th Five-Year Plan period);

2. For tax-exempt imported materials used in experiments and research under the Import Tax Incentive Policies for Scientific and Technological Innovation, Customs supervision shall be automatically terminated upon their first use for scientific research, scientific and technological development and teaching activities;

Concerning tax-exempt imported supplies for scientific research, scientific and technological development and teaching that require frequent location changes due to research scientific research, scientific and technological development and teaching needs or specific usage requirements to location, with prior approval from the competent Customs authority, users may submit consolidated reports on location changes during the previous quarter before the 10th day of the first month of each quarter (with extensions granted for public holidays) to Customs.

 

 

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