Policy

China to annouce revamped resource tax soon-analyst

Date Mar 29 2010 14:44:18

China may announce in a week''s time a long-awaited revamp of its resource tax that will shift taxation of coal, metals, oil and gas extraction to revenues rather than volume, according to a local analyst.

"It should be announced around end of March, or by latest April," Sinolink Securities wrote in a research note.

The change to the resource tax, which the country has been looking to revamp since 2006, will likely boost production costs of coal miners like Shenhua Energy, copper producers such as Jiangxi Copper and alumium makers like Chalco.

It would also cut into revenues of the country''s oil trio PetroChina, Sinopec Corp and CNOOC Ltd, but analysts have previously said they expect Beijing to also revamp a windfall tax on crude oil that will partly offset the impact from resource tax change.

A government source said the resource tax plan had been submitted early this year for approval by the State Council, or China''s Cabinet, adding that changes would only apply to "several types of resources", but declined to elaborate.

Under the current scheme, the government charges a 14-30 yuan per tonne tax on crude oil, versus prevailing crude prices around $80 a barrel, or 4,000 yuan a tonne.

The gas levy is half that of crude.

The current tax on coal was 2-4 yuan per tonne, and coking coal 8 yuan, compared to spot prices for thermal coal at about 730 yuan per tonne.

A 3-5 percent tax could reduce the net income of oil firms by up to 10 percent, though the impact of CNOOC will be smaller as the offshore oil and gas specialist is shielded by production sharing agreements, Bernstein Research wrote in February.

The resource tax, which makes up less than one percent of China''s total fiscal revenue, ends up mostly in local governments'' coffer.
(Reuters)

China releases antimony, rare earth production quotas

Date Mar 16 2010 15:08:22

China''s Ministry of Land and Resources (MLR) announced the country''s 2010 production quotas for antimony concentrate and rare earth oxide on March 15, which stand at 100,000 tons and 89,200 tons respectively, measured by metal content, up 10.89 percent and 8.36 percent year-on-year.

The MLR declared that it will continue its policy to limit the production of tungsten as well as antimony and rare earth in accordance with China''s resources, current mining and exploration rights, and market demand.

Before June 30, 2011, the government will stop issuing new licenses for domestic exploration and mining of tungsten, rare earth and antimony resources, except certain special deposits such as those that have been approved and funded by the central government.

Hunan Province and the Guangxi Zhuang Autonomous Region have obtained quotas accounting for 79.11 percent of this year''s total antimony production quota, while the Inner Mongolia Autonomous Region and Sichuan Province received quotas for 80.72 percent of the total rare earth production quota.

The MLR also increased China''s production quota for tungsten concentrate in 2010 to 80,000 tons, up 16.69 percent year-on-year.

Announcement of the General Administration of Customs No. 59, 2009

Date Jan 28 2010 15:03:58

Announcement of the General Administration of Customs
of the People’s Republic of China

No. 59, 2009

On the Customs Procedure for Refund of Security for Reporting Equipment of Overseas Journalists at Places Other Than the Place of Entry

In order to simplify the procedures of entry and exit of reporting equipment carried by foreign journalists who have come to China to report without invitation and by Macao and Hong Kong journalists who have come to the mainland for reporting purpose (hereinafter referred to collectively as “journalists”), and facilitate the timely refund of the security they have deposited for their reporting equipment, the procedure for refund of security for reporting equipment of journalists at places other than the place of entry is hereby announced as follows:

First, where a journalist has brought with him/her reporting equipment when entering the Chinese mainland, after he/she has deposited a security (in cash or cash cheque in RMB) equivalent to the amount of the duties and taxes payable in accordance with the relevant provisions and gone through the entry formalities for the reporting equipment, if he/she is to leave the Chinese mainland via a port other than the place of entry, and needs to claim the refund at the Customs at the place of exit, he/she shall, in entering the Chinese mainland, obtain from the Customs at the place of entry an Application Form for Refund of Security for Reporting Equipment of Journalists at Places Other Than the Place of Entry (see format in Annex 1; hereinafter referred to as the Application Form), fill out the form, and keep it properly together with the Customs envelope issued and sealed by the Customs at the place of entry for use at the place of exit to go through the relevant formalities there.

Second, to apply for refund of security at the place of exit for the reporting equipment, a journalist shall, 4 days in advance prior to exit, fax the Application Form and the receipt copy of the Receipt of Customs Security/Caution Money/Mortgage to the Customs at the place of exit (see Annex 2 for contact persons, telephone and fax numbers) and then make confirmation.

Third, when a journalist carries his/her reporting equipment out of the Chinese mainland, he/she shall submit to the Customs at the place of exit the Application Form and the Customs envelope issued and sealed by the Customs at the place of entry. Once the Customs at the place of exit has confirmed the re-exportation of all the reporting equipment, an amount in cash or cash cheque in RMB which equals the amount deposited at the place of entry will be refunded. After receiving the refunded amount, the journalist shall sign on a Verification and Approval Form for Refund of Security for Reporting Equipment of Journalists at Places Other Than the Place of Entry for confirmation.

Fourth, where a journalist fails to file the application with the Customs at the place of exit within the prescribed time limit for refund of security for his/her reporting equipment at the place of exit, or the documents he/she has submitted are incomplete, the Customs at the place of exit will not handle the formalities for refund of security for his/her reporting equipment.

Fifth, this Announcement shall become effective as of October 1, 2009. Where there is any discrepancy between this Announcement and the third article of Announcement No. 104, 2008 or between this Announcement and the third article of Announcement No. 19, 2009, this Announcement prevails.

Guide to Customs Clearance of Reporting Equipment Carried by Foreign Journalists

Date Jan 28 2010 15:02:50

I. Applicability

This Guide to Customs Clearance of Reporting Equipment Carried by Foreign Journalists (hereinafter referred to as the “Guide”) is used as a reference for resident foreign journalists and foreign journalists for short-term coverage in China to go through customs clearance procedures for the entry and exit of the reporting equipment carried by them.

Resident foreign journalists refer to the professional journalists who are dispatched by foreign news agencies for a mission of over 6 months of news coverage within the customs territory of the P.R.C. They hold J-1 visa.

Foreign journalists for short-term coverage refer to the professional journalists who stay within the customs territory of the P.R.C. for no more than 6 months for the purpose of news coverage. They hold J-2 visa.

II. Customs clearance procedures for entry and exit of reporting equipment

A. Resident foreign journalists

Resident foreign journalists wishing to bring reporting equipment into or out of the customs territory of the P.R.C. shall go through necessary procedures in accordance with the Rules of the General Administration of Customs of the People’s Republic of China on Entry and Exit of Articles of Resident Offices for Official Use (Decree No. 115 of the General Administration of Customs of the People''s Republic of China).

Prior to applying for entry of articles for official use for the first time, resident offices of foreign news agencies established in China shall go through the recordation formalities at the competent customs house upon the strength of relevant documents.

When applying for entry of articles for official use, resident offices shall file an application with the competent customs house and present the Customs Recordation Certificate, the Customs Application Form for Entry and Exit of Articles for Official Use (hereinafter referred to as the “Application Form”), bills of lading (waybills), invoices and other related documents. When going through declaration procedures with the Customs at the place of entry for articles for official use, resident offices shall fill out or entrust a customs broker to fill out the Import Declaration Form, and present the Application Form approved by the competent customs house, bills of lading (waybills), invoices and other related documents.

B. Foreign journalists for short-term coverage

1. Journalists accompanying state guest delegations

Journalists who accompany state guest delegations headed by heads of state, heads of government or foreign ministers on visits to China and wish to carry reporting equipment into the customs territory of the P.R.C. shall submit to the customs at the place of entry the Certificate Letter for Reporting Equipment of Journalists Accompanying State Guest Delegations issued by the Information Department of the Ministry of Foreign Affairs of China, the list of reporting equipment and other documents as required by the customs to go through the entry procedures.

Once the state guest delegations have concluded the visits, the accompanying journalists shall re-export the reporting equipment out of the customs territory of the P.R.C. in time.

2. Journalists with letter of guarantee

a) Entry procedures

For the entry of their reporting equipment, journalists shall submit to the customs at the place of entry the letter of guarantee issued by organizations which are qualified by the customs to issue such letter of guarantee or by banks or non-bank financial institutions authorized by the customs, the list of reporting equipment, J-2 visa and other related documents to go through the entry procedures. Upon completion of the entry procedures, journalists will receive an envelope sealed by customs which should be properly kept for the re-exportation formalities of the reporting equipment.

b) Exit procedures

When exiting, journalists shall present to the customs at the place of exit the envelope sealed and issued by the customs at the place of entry.

When the place of entry and the place of exit are the same port, the customs at the place of exit will, after confirming that all the equipment carried by the journalists is re-exported, note and stamp on the original letter of guarantee, complete the write-off procedures and return the stamped letter of guarantee to the journalists.

If the journalists enter and exit via different ports, the customs at the place of exit will, after confirming that all the equipment carried by the journalists is re-exported, put the letter of guarantee duly noted and stamped by it into a customs envelope, seal it and return it to the journalists or the organizations issuing the letter of guarantee. The journalists (or the issuing organizations) shall submit the letter of guarantee noted and stamped by the customs at the place of exit or the customs envelope to the customs at the place of entry to complete the closing procedures on the letter of guarantee.

3. Journalists without letter of guarantee

Journalists without letter of guarantee may, by themselves, provide the customs with related documents, pay a security for the temporary admission of their reporting equipment, and after the completion of re-exportation of the equipment, get the security refunded.

a) Entry procedures

When entering with reporting equipment, journalists shall take the red channel, fill out the Baggage Declaration Form for Incoming/Outgoing Passengers (hereinafter referred to as the “Declaration Form”; see annex 1), display their J-2 visa, and submit two copies of the list of reporting equipment to declare the equipment to the customs at the place of entry.

Journalists shall then pay a security (in RMB cash) in light of the amount specified in the Receipt of Customs Security/Caution Money/Mortgage issued by the customs.

After completing the entry procedures, journalists shall ask the customs at the place of entry for an Application Form for Refund of Security for Reporting Equipment of Journalists at Places Other Than the Place of Entry (hereinafter referred to as the “Application Form”, see annex 3), fill out the form, and keep it properly together with the customs envelope sealed and issued by the customs at the place of entry for future use at the place of exit to go through the necessary exit formalities there.

b) Exit and security refund procedures

To apply for refund of security at the place of exit for the reporting equipment, a journalist shall, 4 days in advance prior to exit, fax the Application Form and the receipt copy of the Receipt of Customs Security/Caution Money/Mortgage to the customs at the place of exit (see Annex 4 for contact persons, telephone and fax numbers) and then make confirmation.

When exiting with the reporting equipment, journalists shall submit to the customs at the place of exit the Application Form and the customs envelope sealed and issued by the customs at the place of entry.

After confirmation, the customs at the place of exit will refund to the journalists an amount in cash or cash cheque in RMB which equals the amount deposited at the place of entry.

After receiving the refunded amount, the journalist shall sign on a Verification and Approval Form for Refund of Security for Reporting Equipment of Journalists at Places Other Than the Place of Entry for confirmation.

Where a journalist fails to file the application with the Customs at the place of exit within the prescribed time limit for refund of security for his/her reporting equipment at the place of exit, or the documents he/she has submitted are incomplete, the Customs at the place of exit will not handle the formalities for refund of security for his/her reporting equipment.

C. Reporting Equipment (Facilities) under Special Management

Where a foreign journalist needs to import radio communication equipment temporarily for the purpose of coverage, the approval documents issued by related authorities shall also be submitted to the customs at the place of entry.

Measures for the Administration of Prohibited and Restricted Import of Technologies

Date Jan 28 2010 14:48:38

Degree No. 1, 2009 of the Ministry of Commerce of the People''s Republic of China

Measures for the Administration of Prohibited and Restricted Import of Technologies

Decree No. 1 [2009] of the Ministry of Commerce

In accordance with the Foreign Trade Law of the People''s Republic of China and the Regulations of the People''s Republic of China on the Administration of Import and Export of Technologies , the revised Measures for the Administration of Prohibited and Restricted Import of Technologies is hereby promulgated, which shall take effect 30 days thereafter. The Measures for the Administration of Prohibited and Restricted Import of Technologies (the former Degree No. 18 [2001] of the Ministry of Foreign Trade and Economic Cooperation and the State Economic and Trade Commission) is abolished at the same time.

Minister Chen Deming

1 February 2009

Measures for the Administration of Prohibited and Restricted Import of Technologies

Article 1 For the purpose of promotion of development of Chinese technology import, these Measures is formulated in accordance with the Foreign Trade Law of the People''s Republic of China and the Regulations of the People''s Republic of China on Administration of Import and Export of Technologies .

Article 2 The import of technologies that falls within the Technologies Prohibited from Import in the Catalogue of Technologies the Import of Which Is Prohibited or Restricted (published separately) shall be prohibited.

Article 3 The State adopts a licensing system for the import of technologies the import of which is restricted. The importer of technologies that falls within the Technologies Restricted to Be Imported is in the Catalogue of Technologies the Import of Which Are Prohibited or Restricted shall apply for licenses in accordance with these Measures.

Article 4 The competent commercial authorities of provinces, autonomous regions, and municipalities directly under the Central Government (hereinafter referred to as the local competent commercial authorities) shall be the review authorities of restrictive import of technologies, which are responsible for licensing of the restrictive import of technology in their administrative divisions. The enterprises under the administration of the Central Government shall go through the licensing procedures with the local competent commercial authorities in the territorial principle.

Article 5 The operator of technology import shall fill in the Application of Chinese Restrictive Technology Import (hereinafter referred as the Application, see Schedule 1) and report it to the local competent commercial authorities for import licenses while importing the technologies restricted as specified in the provision of Article 3 of these Measures.

Article 6 The local competent commercial authorities shall organize technology and trade experts to conduct technical and trade examination and review on the technology under application for import within 30 working days upon receipt of the Application and determine whether or not to approve the import thereof.

Where the applier provides incomplete application materials, the content of application is not clear or there are other circumstances that fail to conform to the prescribed provisions, the local competent commercial authorities shall require the applier to make corrections or make up for the application materials.

Article 7 Trade review on restricted technology import shall include the following contents:

(1) Whether or not comply with Chinese foreign trade policies and benefit the development of foreign economic and technical cooperation;

(2) Whether or not comply with the duties committed by China to the outside world; and

(3) Whether or not cause adverse effect on the establishment and acceleration of establishment of specific domestic industries.

Article 8 Technical review on restricted technology import shall include the following contents:

(1) Whether or not threaten state security, social public interests or public morality;

(2) Whether or not threaten the health or safety of human and life or health of animals and plants;

(3) Whether or not destroy environment; and

(4) Whether or not comply with national industrial policies and economic and social development strategy and benefit the promotion of Chinese technical progress and industrial upgrading and maintenance of Chinese economic and technical rights and interests.

Article 9 Where an application for technology import is approved, the local competent commercial authorities shall issue the Letter of Intent for Licensing Technology Import of the People''s Republic of China (hereinafter referred to as the Letter of Intent for Licensing Technology Import, see Schedule 2) uniformly printed, prepared and numbered by the Ministry of Commerce. The valid period of the Letter of Intent for Licensing Technology Import is 3 years.

The operator of technology import shall sign technology import contracts with foreign parties after acquiring the Letter of Intent for Licensing Technology Import.

Article 10 The operator of technology import shall hold the Letter of Intent for Licensing Technology Import, copy of the contract and its schedules and certifications of legal status of contractual parties to apply for the technology import license with the local competent commercial authorities after signing the technology import contract.

Article 11 The local competent commercial authorities shall review on the authenticity of the technology import contract within 10 working days upon receipt of the documents prescribed in Article 10 of these Measures, and determine whether or not to approve the license.

Article 12 The operator of technology import may submit the copy of the signed technology import contract and its schedules as well as certification of legal status of contractual parties while filing an application for technology import to the local competent commercial authorities according to Article 5 of these Measures.

The local competent commercial authorities shall organize technology and trade experts to conduct examination and review on the technology under application for import within 30 working days upon receipt of the above-mentioned documents, and determine whether or not to approve import. The local competent commercial authorities shall conduct examination and review on the authenticity of the technology import contract within 10 working days upon approval of import, and determine whether or not to approve the license.

Where the applier provides incomplete application materials, the content of application is not clear or there are other circumstances that fail to conform to the prescribed provisions, the local competent commercial authorities shall require the applier to make corrections or make up for the application materials.

Article 13 Where technology import is licensed, the local competent commercial authorities shall issue to the operator of technology import the Technology Import License of the People''s Republic of China (hereinafter referred to as the Technology Import License, see Schedule 3) uniformly printed, prepared and numbered by the Ministry of Commerce. The restricted technology import contract shall take effect as of the date of the issuance of the Technology Import License.

Article 14 The operator of technology import shall have access to the "information management system of technology import and export contract" on the website of the Ministry of Commerce (website: jsjckqy.fwmys.mofcom.gov.cn) and record the content of the contract according to the procedures before acquiring the Technology Import License from the local competent commercial authorities.

Article 15 Where the investment projects that shall be examined and approved or checked by the relevant departments involve restricted technology import, the operator of technology import shall submit the documents approved by the relevant departments while filing an application for technology import to the local competent commercial authorities according to Article 5 or Article 12 of these Measures.

Article 16 The operator of technology import shall renew the procedures of technology import licensing according to the procedures prescribed by these Measures if the content of technology import needs to be altered after acquiring the Technology Import License.

Article 17 The operator shall go through the relevant procedures including foreign exchange, banking, taxation and Customs by holding the Technology Import License.

Where the import of technologies falls within the Technologies Restricted from Import in the Catalogue of Technologies the Import of Which Is Prohibited or Restricted, the operator of technology import shall take initiative to present to the Customs the Technology Import License and the Customs shall handle the procedures for examination and declaration against the Technology Import License.

Article 18 The Ministry of Commerce shall be responsible for supervision and examination on the technology import licensing by the local competent commercial authorities.

The local competent commercial authorities shall report the approved technology import licensing items of the previous year to the Ministry of Commerce for filing before January 31 every year.

Article 19 In case of violation of the provisions of these Measures, the responsibilities of the persons and units concerned shall be prosecuted in accordance with the Regulations of the People''s Republic of China on Administration of Import and Export of Technologies .

Article 20 These Measures is not applicable to the import of special technologies for defense and military use.

Article 21 These Measures shall take effect 30 days after promulgation. The Measures for the Administration of Prohibited and Restricted Import of Technologies (the former Degree No. 18 [2001] of the Ministry of Foreign Trade and Economic Cooperation and the State Economic and Trade Commission) is abolished at the same time.

Schedules: Forms Attached to Technology Import Regulations. (omission)

The Ministry of Commerce of the People''s Republic of China 2009-02-01