China dropped import duties and value-added tax (VAT) for a variety of equipment, including for solar cells and lithium-ion batteries on April 1, thus sending a "positive signal" to the China-Europe trade negotiations.
According to a statement released by China’s Ministry of Finance, the list of tax exempt items is composed of raw materials and equipment parts that the country cannot produce. However, the ministry did not specify what kind of photovoltaic equipment will be exempt.
"As from April 1, 2013, the exemption from import duties and value-added tax (VAT) may be granted to the importing key parts and raw materials that are necessary to the state-supported manufacturing of … solar cell equipment … [and] li-ion power batteries," read a translation of the statement, published on Chinese tariff website, ETCN.
Importers can register with customs and tax authorities for a tariff exemption review from April 1 to 30.
