The policy has benefited the LED industry significantly

The four ministries of the Ministry of Finance and Other departments jointly issued a notice and starting from April 1 this year, China will import a catalogue of major equipment and products related to imports of major technical equipment and products, list of imported key spare parts and raw materials, and equipment and product catalogs that are not subject to tax exemption, etc. Adjust it.

In the adjustment of tariff-free and import-link value-added tax catalogs, 28 major technical equipments have been added, and three major emerging industries such as marine equipment, solar energy applications, and LED equipment have become the most obvious benefits.

The Ministry of Finance, the Ministry of Industry and Information Technology, the General Administration of Customs and the State Administration of Taxation jointly issued the "Circular on Adjusting the Catalogue of Import Tax Policies for Major Technical Equipment", clarifying the latest major technical equipment and product catalogue supported by the State for development this year. "and" List of major technical equipment and products for import of key spare parts and raw materials," will be implemented on April 1, 2012. All domestic enterprises that meet the specified conditions will be imported for the production of major technical equipment and products listed in the new catalogue. The related parts and components and raw material commodities in the list will be exempted from customs duties and import value-added tax.

The four departments have also revised the "Catalogue of Major Technical Equipment and Products that Do Not Exempt from Taxes", and have enjoyed the preferential taxation policies for imports that are approved after April 1 this year or in accordance with the Circular of the State Council on Adjusting the Taxation Policy for Imported Equipment. Relevant projects and enterprises, importing their own equipment listed in the new catalogue, as well as the technology and accessories and spare parts imported in accordance with the contract with the above equipment, will be subject to import duties.

For the adjustment of the catalog, experts said that this is mainly based on the needs of structural adjustment and industrial upgrading. In recent years, the domestic equipment manufacturing industry has achieved rapid development. Apart from the driving role of demand growth, the major technical equipment taxation policies have also provided support in reducing the import costs of core technologies and key equipment. However, with the improvement of domestic major equipment technological capabilities, the contradiction between the introduction of advanced equipment and the localization of equipment has become increasingly prominent.

This directory adjustment has two positive aspects. Firstly, the tax exemption policy for major technology equipment is gradually adjusted to tax exemption for imported key parts and components, which is conducive to the import substitution of major technical equipment; and secondly, new emerging industries that are in urgent need of development but lack core technologies and key equipment are included in the The catalogue of technical equipment tax policies will help adjust the industrial structure and realize the rapid development of emerging industries such as new energy and high-end equipment.

The adjustment of the import tax policy directory shows that a total of 28 major technical equipments have become new varieties. Among them, 10 million tons of oil refining equipment, natural gas pipeline transportation equipment, and large-scale ship equipment have already been embodied in the July 2011 Circular on Adjusting the Import Taxation Policies for Major Generations of Nuclear Power Generating Units and Other Major Technical Equipment. For the newly added varieties, they are mainly concentrated in three areas: marine equipment, solar energy applications, and LED equipment.

Semiconductor light-emitting diode (LED) production equipment added three types of equipment, namely: metal organic chemical vapor deposition equipment, plasma etching machine, indium tin oxide (ITO) sputtering station. LED is a technology-guided industry, especially technology and capital-intensive chip manufacturing, which requires high-end process equipment to provide support. However, similar to the “bottleneck” under the semiconductor investment boom, there is still a problem of speed matching between equipment R&D and industrial expansion. Especially in the high-end equipment sector, most equipment still needs to rely on imports. Taking the plasma etching machine as an example, the larger-capacity, higher-performance etching machine has become the demand target of LED mainstream enterprises, and the longer maintenance period and convenient human-computer interaction interface are also essential for large-scale production line equipment. condition.

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