Notice of the Ministry of Finance and the State Administration of Taxation on Adjusting Export Tax Refund Rates for Some Textile and Garment Commodities

Issued by: Ministry of Finance, State Administration of Taxation

Document No.: Cai Shui [2008] No.111

Date of Issue: 2008-07-30

Financial offices (bureaus) and state taxation bureaus of all provinces, autonomous regions, municipalities, cities specifically designated in the state budgetary plan, and the financial bureau of Xinjiang Production and Construction Corps.:

Export tax refund rates for some commodities shall be adjusted upon approval by the State Council. We hereby notify the related issues as follows:

I. The tax refund rate for certain textile and garment exports shall be raised from 11% to 13%; the refund rate for some bamboo products shall be raised to 11%. Please refer to Appendix 1 for detailed names and tax file numbers.

II. Export tax refund for pine nut kernel, some pesticide products, certain organic arsenic products, paclitaxel and its products, rosin, silver, zero-valent zinc, some coating products, some batteries and carbon anode shall be abolished. Please refer to Appendix 2 for detailed names and tax file numbers.

III. Execution time

1. The adjustments of export tax refund rates for the aforesaid commodities shall be effective on August 1, 2008. The specific time for implementation shall be the export date as indicated by the customs in the Declaration on Export Goods (Used specifically for export tax refunding).

2. As for the commodities for which the export tax refund shall be abolished, if enterprises have signed export contracts before August 1, 2008 and if the prices are unalterable, the export enterprises may go to the competent tax authorities in charge of export tax refund with the signed contracts for filing for records before August 15, 2008. The unadjusted export tax rates are allowed to apply to the commodities exported before January 1, 2009 of the recorded export contracts; for those who fail to file for records, or who declare for exportation after December 31, 2008, the adjusted export tax refund rates shall be applied without exception.

An export contract as mentioned above mean: an effective written export contract with clear contents of the date of agreement, commodities?names, unit prices, quantity and amount, and which shall be signed or sealed by the authorized representatives of both parties of the exported enterprise and the foreign side, and it shall accord with relevant laws and regulations of the “Contract Law? unqualified contracts are not allowed to be filed for records. Any export contract can not be changed once it is put on the record.

The Notice is hereby notified.

Appendix:

1. List of Commodities Whose Export Tax refund Rates are raised (omitted)

2. List of Commodities Whose Export Tax refund is abolished (omitted)

Ministry of Finance

State Administration of Taxation

2008-07-30