Customs General Administration: Foreign Enterprises Export Taxable Goods, Cancel Tax Preferences.

Except for goods that can be exempted from export duties stipulated by laws and regulations, taxable goods exported by foreign invested enterprises shall be taxed according to the regulations.

The national customs administration yesterday interpreted the newly issued notice of the General Administration of Customs on levying taxes on export taxable goods from foreign invested enterprises. It stressed that according to the relevant principles of WTO, foreign investment enterprises and domestic funded enterprises should be given the same tax treatment.

It is understood that since China's accession to the WTO in 2001, according to the principle of WTO fair trade and national treatment, foreign-funded enterprises and domestic funded enterprises must stand on the same starting line and compete fairly.

Therefore, China has phased out the super national treatment of foreign investment enterprises in terms of taxation.

This year, with the expansion of the scope of export tax goods, the General Administration of Customs once again emphasized in the form of external announcements that all export taxable goods exported by foreign invested enterprises will be subject to export duties.

The General Administration of Customs said that at present, China's export taxable commodities are mostly "two high and one capital" products.

It is reported that the frequent adjustment of export tariff policies and related tax policies in recent years has been mainly aimed at optimizing the domestic industrial structure and restraining the export of products with high energy consumption, high pollution and resources and reducing the trade surplus.

In November 2006, January 2007 and June, our country increased the rate of "two high and one capital" products and products that were easy to produce international trade frictions or levying export provisional tariffs.

The export products of foreign-funded enterprises need to pay customs duties, which will be faced with an increase in export costs.

Therefore, the customs reminds foreign investment enterprises to take the initiative in coping with the direction of macroeconomic regulation and control and actively optimize the product mix.