China Updates ‘Catalog of Encouraged Technology and Product Imports’
May 26 – China’s Ministry of Commerce (MoC) issued the 2011 version of “Catalog of Encouraged Technology and Product Imports” on April 18, replacing the old catalog released in 2009.
The encouraged technology and product imports in the Catalog – which the MoC updates from time to time – cover the importation of various advanced technologies, essential equipment and components, critical resource products as well as raw materials. The Catalog shows China’s desire to obtain core technologies overseas and purchase key equipment/components it currently lacks the capability to manufacture.
The government grants companies that import technologies or products included in the Catalog with import discount interest as an incentive offer. However, according to a recent circular on import discount interest, before enjoying the favorable treatment, companies need to submit applications to the regional Department of Finance and Department of Commerce to get approval from both authorities. During the application, they also need to refer to specific government requirements to make sure their imported technologies/products meet corresponding criteria.
Dezan Shira & Associates is a boutique professional services firm providing foreign direct investment business advisory, tax, accounting, payroll and due diligence services for multinational clients in China, Hong Kong, Vietnam and India. To contact the firm please email firstname.lastname@example.org, visit www.dezshira.com, or download the firm’s brochure here.