China waiving import duties on certain emergency vehicles, medical supplies

Announcements made by officials in China are intended to simplify customs and trading procedures in an effort to address the coronavirus outbreak.

China is exempting from customs duty, imports of ambulances and vehicles used for emergency purposes as well as certain medical supplies (including reagents, disinfection equipment, and protective supplies) through 31 March 2020.

Importers of these vehicles or medical supplies may be eligible for refunds of customs duty for amounts already paid on these imported supplies.

KPMG observation

Trade professionals anticipate that China may offer more relief measures if the challenges from the coronavirus continue.

Aside from waiver of import duties, the current measures could be beneficial for biotechnology companies engaged in scientific research. Those companies could also benefit from research and development tax incentives, ranging from value added tax (VAT) refunds for equipment bought by scientific institutions. 

For more information on this topic or to learn more about KPMG’s Trade & Customs Services, contact:

The information contained in TaxNewsFlash is not intended to be "written advice concerning one or more Federal tax matters" subject to the requirements of section 10.37(a)(2) of Treasury Department Circular 230, as the content of this document is issued for general informational purposes only, is intended to enhance the reader’s knowledge on the matters addressed therein, and is not intended to be applied to any specific reader’s particular set of facts. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. Applicability of the information to specific situations should be determined through consultation with your tax adviser.
 

KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever.
 

Direct comments, including requests for subscriptions, to Washington National Tax. For more information, contact KPMG’s Federal Tax Legislative and Regulatory Services Group at + 1 202.533.4366, 1801 K Street NW, Washington, DC 20006-1301.
 

To unsubscribe from TaxNewsFlash-United States, reply to Washington National Tax.
 

Privacy | Legal