The State Adjusts Foreign-funded Enterprises' Import and Export Tax Reduction Policy

The impact of the import of international machine tool products on the domestic machine tool industry is not small, which is not conducive to the accelerated transformation of the domestic machine tool industry. Recently, the state's adjustment of foreign-funded enterprises' import and export taxation policies for machine tool casting equipment will reduce the import of machine tool products by foreign-funded enterprises to a certain extent, and ease the import and export deficit.

According to relevant media reports, due to the cold weather of the financial crisis in recent years, the chills around the machine tool equipment foundry industry in China have been difficult to disperse, resulting in a significant drop in the export profits of domestic machine tool casting products. Recently, according to the relevant regulations of the state, adjustments have been made to the policy of tax exemption for foreign-funded enterprises importing machine tool casting equipment. This means that foreign companies that import these equipment will not be able to enjoy the exemption from customs duties and value-added tax as they have in the past. This is an intangible protection for the domestic foundry industry, providing a buffer zone in a fierce market environment.

It is reported that after the adjustment of policies, newly approved foreign-funded projects will be subject to tariffs if they import CNC machine tool foundry products and pressure forming machines listed in the “Not for Tax Exemption from Domestic Capital”. In other words, foreign-funded enterprises can only enjoy the relevant preferential treatment by importing CNC machine tools and pressure forming machines whose domestic existing technologies cannot meet the requirements of the index. This is undoubtedly a rare opportunity for the vigorous development of China's machine tool casting equipment. China's machine tool foundry equipment is in urgent need. Seize the opportunity to promote the better development of domestic machine tool casting equipment.