Application with Existing Production Facilities

Update time:2016-02-22  source:

(a)Capital goods not priced


If a Chinese processing enterprise undertakes an outward processing and assembly order with existing production plant and equipment, and the capital goods contributed by the Chinese and foreign parties are not priced in the contract, the following application procedures will apply:


(b) Capital goods priced individually


Processing contracts with capital goods priced individually are negotiated and signed between agents with import and export rights and foreign companies.


A tax exemption application for processing contracts with capital goods priced individually should then be completed and submitted to the foreign trade and economic cooperation department at city level. Upon approval of the contract, the agent will hand the job to the processing enterprise.


2.4.2 Submission of Application for Outward Processing and Assembly with Enlarged Production Capacity


If a processing enterprise needs to build new factory plant or enlarge existing plant and purchase new equipment to undertake an outward processing and assembly order, it must first submit its project proposal and feasibility study report and then submit the contract (agreement) for approval. (Application procedures same as in 2.4.1.)


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