To advance the national strategies of invigorating China through science and education and driving development through innovation, as well as fostering technological progress, the Ministry of Finance, the General Administration of Customs (GACC), and the State Taxation Administration jointly issued policies on import tax incentives during the "14th Five-Year Plan" to support scientific and technological innovation. This article explains the import tax incentives available to research institutions for technological innovation through a question-and-answer format.
I. How are the qualifications of beneficiaries defined?
According to the Notice issued by the Ministry of Finance, GACC, and the State Taxation Administration on Import Tax Incentives to Support Innovation during the "14th Five-Year Plan" Period, research institutions, technology development organizations, schools, party schools (administrative colleges), libraries, and publication importers (hereinafter referred to as "import entities") approved by the relevant authorities are eligible beneficiaries. Specifically, this includes research institutes, universities, national laboratories, foreign-funded research and development (R&D) centers, and publication-importing entities. If classified as a scientific research institution, it can apply to the relevant science and technology authorities to qualify for tax-exempt status.
II. Which commodities are eligible for duty-free import?
Duty-free imported commodities are managed through an official list system. The Notice from the Ministry of Finance, GACC, and the State Taxation Administration regarding the Duty-Free List (First Batch) of Imported Scientific Research, Technological Development, and Teaching Supplies during the "14th Five-Year Plan" period specifies that 15 categories of commodities, including analytical measuring instruments and experimental teaching equipment, can qualify for duty-free import if they meet the list criteria.
III. How can an applicant process tax reduction or exemption applications?
Applicants seeking tax reduction or exemptions or reductions on eligible imports should follow the relevant import-export tax incentive policies. Before declaring the goods for import or export, applicants should obtain the necessary documentation proving their eligibility for tax incentives. They should then submit the following materials to the relevant customs authority to apply for tax reduction or exemption or reduction approval.
(1) Application Form for Tax Collection or Exemption for Imported or Exported Goods;
(2) certification materials, such as the legal person certificate of a public institution, the document on the formation of a state organ, the registration certificate for a social organization with legal person status, the registration certificate for a private non-enterprise entity with legal person status, or the registration certificate for a foundation with legal person status;
(3) the import or export contract, invoices, and product information on the relevant goods.
For importing entities that are not independent legal entities or institutions, their affiliated organizations should apply to the supervising customs authority of the affiliated organization for the necessary tax reduction or exemption review procedures.
IV. If the equipment has been imported with taxes already paid, is it still possible to apply for tax reduction or exemption?
For goods eligible under applicable import tax preferential policies that have already been taxed due to emergencies or other reasons, the qualified tax reduction or exemption applicant should apply to customs for supplementary review and confirmation of the tax reduction or exemption, as well as the tax refund procedure, within one year of tax payment.
V. Does completing the tax reduction or exemption review and confirmation procedures signify the end of customs supervision?
In line with the Administrative Measures of the Customs of the People's Republic of China for Tax Reduction or Exemption on Imported and Exported Goods, the customs supervision period for goods, excluding aircraft, ships, and motor vehicles, is three years, starting from the date the goods are officially cleared through customs. The applicant for tax reduction or exemption shall keep and use the imported goods subject to tax reduction or exemption according to the provisions of the Customs and shall be subject to supervision by the Customs according to law during the period of customs supervision.
VI. Are duty-free imported commodities allowed to be directly disposed of during the customs supervision period?
No. If duty-free imported commodities are to be transferred, mortgaged, repurposed, or otherwise disposed of, prior customs approval is required, along with the completion of relevant procedures.
During the customs supervision period and with customs approval, importing entities may use duty-free imported goods for scientific research, technological development, or teaching activities of other organizations. However, these items generally should not be moved out of the importing entity. In exceptional cases, such as urgent needs or specific location requirements, the goods may be temporarily or short-term moved out of the entity upon receiving customs approval. For individuals or entities requiring frequent changes to the place of use, such alterations should be reviewed and approved by customs. Subsequently, a consolidated report detailing the changes for the previous quarter should be submitted to customs by the 10th day of the first month of each quarter (or the next working day in case of holidays).
Duty-free imported scientific research instruments and equipment that are managed under the unified framework of the national network management platform and adhere to relevant regulations may also be utilized for scientific research, technological development, and teaching purposes in other institutions.
VII. Are there any additional procedures required once the supervision period comes to an end?
When the period of customs supervision of goods subject to tax reduction or exemption expires, the supervision shall be released automatically. For materials imported under the technological innovation import tax policy and used in experiments, research, or teaching activities, supervision will be automatically lifted from the date the goods are first used for such activities.
Important Notice: 2025 marks the concluding year of the "14th Five-Year Plan". Relevant scientific research institutions that qualify as beneficiaries and have plans for equipment import are advised to schedule their processes efficiently, promptly complete tax reduction or exemption procedures, and closely monitor policy updates during the "15th Five-Year Plan" period.
Disclaimer：The above content is translated from Chinese version of China Inspection and Quarantine Times. The China Inspection and Quarantine Times version shall prevail.