China Unveils Import Tax Policies for Energy Resources Development

China recently announced the following preferential import policies for the energy resources sector during the 14 ^th Five-Year Plan period (1 January 2021 to 31 December 2025):

• Imports of equipment, instruments, spare parts, accessories and special tools that domestic manufacturers cannot produce or meet performance requirements by self-operated petroleum (natural gas) exploration and development projects in specific onshore regions of China for direct use in exploration and development are exempt from import duties.

• Imports of equipment, instruments, spare parts, accessories and special tools that domestic manufacturers cannot produce or meet performance requirements by Chinese-foreign co-operative projects to carry out petroleum (natural gas) exploration and development in bid-winning blocks of onshore petroleum (natural gas) exploration and development approved by China for direct use in exploration and development are exempt from import duties and import value-added tax.

Full details can be found in the joint circular recently issued by the Ministry of Finance, the General Administration of Customs and the State Taxation Administration (Cai Guan Shui No. 17 [2021]).

Source: Ministry of Finance ​​​​​​​