According to Articles 56 to 581 of the Customs
Law of the People's Republic of China
("Customs Law")2, there are
three categories where duties may be reduced: statutory duty
abatements or exemptions, deductions or exemptions on special
goods, and temporary duty reductions or exemptions.
"Deductions or exemptions on special goods" refers to
goods imported into China that enjoy a reduction or exemption of
duties in specified areas and enterprises or for special purposes
until the expiration of customs supervision over such goods.
Special goods which are subject to reductions or exemptions are
divided into many categories according to the region, use of the
goods, nature of the trading business and source of funds.
According to related regulations, if the imported goods fall within
certain product categories encouraged by the government, the
foreign investment enterprise can apply for a preferential policy
of deduction and/or exemption of duties.
