China Laws and Regulations Update in December 2017

1. Circular Notice on Adjusting Import Taxes on Certain Commodities
Promulgated by the Ministry of Finance
Document number: No.25 [2017] TB
Promulgation date: 22nd November 2017
Effective date: 1st December 2017

As from 1st December 2017 import taxes on certain commodities are reduced based on current tax rates. The import tax reduction this time applies to 187 commodities with an 8-digit tax number such as food, healthcare products, medicine, cosmetics, clothes, shoes and hats. The average tax rate is reduced from 17.3% to 7.7%. The tax rate of diapers and nappies is reduced from 7.5% to 0%. The tax rate of certain baby milk powder products is reduced from 20% to 0%. (Source: Website of the Ministry of Finance)

http://gss.mof.gov.cn/zhengwuxinxi/zhengcefabu/201711/t20171123_2755506.html

 

2. Announcement on the Accumulation of R&D Expenses after Pre-Tax Additional Deduction

Promulgated by the State Administration of Taxation
Document number: No.40 Announcement by SAT in 2017
Promulgation date: 8th November 2017

The Announcement focuses on the accumulation of R&D expenses, clarifying the criteria for additional deduction after government grants, the time points at which R&D expenses are offset by special income from leftover bits and pieces, defective products, intermediate and trial goods offsets and at which R&D expenses are capitalized, the additional deduction policy for R&D expenses spent on unsuccessful R&D activities and the additional deduction criteria for the licensing of R&D projects. (Source: Website of the State Administration of Taxation)

http://www.chinatax.gov.cn/n810341/n810755/c2922308/content.html

 

3. Opinions on Deepening the Reform of Facilitating the Trademark Registration Process in Order to Make the Trademark Registration System More Efficient
Promulgated by the Trademark Office of the Administration for Industry and Commerce
Promulgation date: 14th November 2017

The Opinions sets out the goals to be achieved by the end of 2018: shortening the period of issuing the acceptance notice of a trademark application to one month, the period of reviewing a trademark application to six months, the period of reviewing a trademark assignment application to four months, the period of reviewing a trademark change or extension application to two months and the period of trademark retrieval to two months. (Source: Website of the Administration for Industry and Commerce)

http://sbj.saic.gov.cn/gzdt/201711/t20171117_270420.html

 

4. Credit Management Rules for the Civil Aviation Industry (Provisional Edition)
Promulgated by the Civil Aviation Administration of China
Document number: No.136 [2017] CAAC
Promulgation date: 6th November 2017

The Credit Rules consists of five chapters and 31 articles, setting credit information collection, use, removal, etc. standards for the civil aviation industry and requiring the use a single credit information system in the national civil aviation industry to record basic information of organizations and people engaging in civil aviation activities in China and in ones that are performed outside China subject to approval by the Chinese authority and details of their violation of laws and dishonest behavior, which mean violation of relevant laws, rules, regulations and dishonest behavior that shall be recorded into the credit records as required by law and that includes mild and serious dishonest behavior. (Source: Website of the Civil Aviation Administration of China)

http://www.caac.gov.cn/XXGK/XXGK/ZFGW/201711/t20171114_47571.html

 

5. Opinions on the Transition from Labor Arbitration to Litigation
Promulgated by the Supreme People’s Court and the Ministry of Human Resources and Social Security
Document Number: No.70 [2017] MOHRSS
Promulgation date: 8th November 2017

The Opinions requires the gradual use of a single set of case acceptance and choice of laws rules in the settlement of labor disputes, especially social insurance and employment disputes, adding that labor case acceptance, protection and enforcement processes should be standardized. For example, in the event of a labor dispute that is filed for litigation before going to arbitration , the court shall dismiss or overrule the case and advise the parties involved of going to arbitration; and the arbitration committee shall advise the employee involved of applying to the court through the arbitration body for protection of possessions that may be transferred or hidden by the employer to make the arbitration award unenforceable. (Source: Website of the Ministry of Human Resources and Social Security)

http://www.mohrss.gov.cn/gkml/xxgk/201711/t20171109_281337.html

 

6. The Announcement on Changes in the Regulation Period of Tax Reduced or Exempted Imports
Promulgated by the General Administration of Customs
Document Number: No.51 Announcement by GAC in 2017
Promulgation date: 24th October 2017
Effective date: 24th October 2017

In order to help companies make technical changes and promote equipment updating and industrial upgrading, the General Administration of Customs decided to change the regulation period of tax-reduced or tax-exempted goods to eight years for airplanes, six years for automotive vehicles and three years for other goods. The regulation period commences from the date of import clearance. (Source: Website of the General Administration of Customs)

http://www.customs.gov.cn/customs/302249/302266/302267/738956/index.html

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