The Ministry of Finance, General Administration of Customs and State Administration of Taxation jointly issued a notice on import taxation policies for the Shanghai Free Trade Zone, with effect from the date on which the Zone was inaugurated. According to the notice, goods manufactured, processed and sold to China through the “Second Line” by enterprises established in the Zone shall be subject to the value added tax on imports and consumption tax, while imports of goods such as required machinery and equipment by manufacturers and production service enterprises within the Zone shall be exempt from such tax. In addition, subject to the strict implementation of the import taxation policies, establishment of platforms for exhibition and trading of bonded goods within specific areas is allowed.

 

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