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CIIE exhibitors to enjoy tax breaks

Time:2020-10-27 11:17:36 Source:China Daily

Many exhibitors at the China International Import Expo will enjoy tax breaks if their exhibited products are sold during the expo proper, thanks to a policy designed for the import-themed trade fair.


The policy for exhibits of the third edition of the expo was jointly issued by the Ministry of Finance, the General Administration of Customs and the State Taxation Administration on Oct 12.


CIIE exhibitors stand to enjoy some tax exemptions, including preferential Customs duties, value-added taxes and consumption taxes, according to the policy.


In previous editions, Customs duties for products sold during exhibits were exempted, but VAT and consumption taxes were levied at 70 percent.


Yu Zhiyong, sales director of Wirtgen Group's China road technologies branch, said the company is very happy to learn about the new policy.


The Germany machinery maker will introduce a road recycler, which is priced at more than 10 million yuan ($1.5 million), to the Chinese market during the expo.


"The current Customs duty for engineering machinery is 8 percent, and the VAT is 13 percent," Yu said. "So the tax cut is very good news for us. We can then use the money saved in our research and development."


Each exhibitor is subject to a quota to receive the tax cut. For example, exhibitors of mechanical and electrical equipment can enjoy tax cuts for a maximum of 12 items sold at the expo, while exhibitors of medical equipment can have a maximum of five.


A list detailing the quotas for five specific categories-machines and instruments; tractors; ships; medical equipment; artwork, collectibles and antiques-was published on the government's website.


It added that goods not on the list can enjoy tax cuts for total sales under $20,000, excluding tobacco, liquors, automobiles, products related to endangered animals and plants and goods in the key equipment catalog not eligible for tax cuts.


Duties will be levied on exhibits selling products during the CIIE in excess of the quantity or quota stipulated in the policy, as well as unsold exhibit products which are not returned overseas after the expo.


The China International Import Expo Bureau and the National Exhibition and Convention Center (Shanghai) are responsible for submitting the list of participating exhibitors and the exhibit products sold during the expo, according to the policy.


The expo, divided into six exhibitions covering services, healthcare, foods, automobiles, industrial equipment and consumer goods, will take place in Shanghai from Nov 5 to Nov 10.


In the past few months, the bureau has organized 23 roadshows in 19 provinces across the country, promoting the expo to more than 1,900 domestic companies, and helping buyers and exhibitors to connect for business negotiations.

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