Enterprises with foreign investment importing goods for the production of products sold in domestic market, or exporting their own products, which are subject to license control, shall, in accordance with the relevant provisions of the state concerning the license control of import goods, apply for the license to the Municipal Commission of Foreign Economic Relations and Trade; those importing mechanical and electrical products shall go through the registration procedure with the Municipal Office for the Import of Mechanical and Electrical Products; Those not subject to license control shall be released by the customs against relevant documents.

Equipment imported by an enterprise with foreign investment for their own use within the total amount of investment for a project falling into the encouraged classification or restricted classification II in the Guiding List of Industries for Foreign Investors shall be exempt from import duty and import link tax, with the exception of those indicated in the List of Import Goods for Foreign-invested Projects without Exemption of Duty. Equipment imported by an enterprise with foreign investment for their own use for a project with a loan from a foreign government or international financial institution and imported equipment provided by foreign investors in processing trade without serving as investment shall be handled by applying the provisions of the preceding paragraph, i.e. be exempt from import duty and import link tax, with the exception of those indicated in the List of Import Goods for Foreign-invested Projects without Exemption of Duty.

Equipment imported for own use within the total amount of investment for projects falling into those prescribed in the List of Industries, Products and Technology the Development of Which Are Emphatically Encouraged by the State at Present shall be exempt from import duty and import link tax, with the exception of those indicated in the List of Import Goods for Foreign-invested Projects without Exemption of Duty.

With regard to projects under Articles 24 and 25, technology, accessories and spare parts imported together with the equipment as provided in the contract shall be exempt from import duty and import link tax.

Where any enterprise with foreign investment purchases domestically produced equipment within the total amount of reinvestment, if the counterpart import equipment is duty-free according to the relevant provisions, the payment of value-added tax on such domestically produced equipment may be refunded in full and be credited to the payment of enterprise income tax according to the relevant provisions.