14 January 2009
China: The Chinese Ministry of Finance and the State Administration of Taxation recently announced an increase in the value-added tax (VAT) refund rates for export products with a labour intensive nature.
The VAT refund rates for some exported wood products will increase from 5 percent to 9 percent, while the rates for exported furniture will increase from 11 percent to 13 percent. This new measure covers some products outlined in the table below.
New Zealand suppliers of wood products to Chinese manufacturers may benefit from this new policy, which came into effect on 1 December 2008. The policy is intended to help export-oriented, labour intensive companies survive the current tough market situation. It is hoped that this move will encourage Chinese manufacturers to maintain or even increase current production volumes, leading them to require more raw wood materials.
Particle board, fiberboard of wood, and similar board of wood etc.
- Tariff codes: 4410110000 - 4411942900
- Adjusted VAT refund rate: 9 percent
Plywood, veneer, etc.
- Tariff codes: 4412101199; 4412101919, 4412102099, 4412109190, 4412109290, 4412310090, 4412321090, 4412329090, 4412390090, 4412941090, 4412949190, 4412949290, 4412949990, 4412991090, 4412999190, 4412999290, 4412999990 - 4413000000
- Adjusted VAT refund rate: 9 percent
Windows, French windows and their frames of wood
- Tariff codes: 4418100090
- Adjusted VAT refund rate: 9 percent
Furniture
- Tariff codes: 9403300090, 9403400090, 9403509990, 9403501090 - 9403509100, 9403609990 - 9403891000, 9403899000 – 9404210090
- Adjusted VAT refund rate: 13 percent
