Today, lets talk aboutImport and Export TradeAn important "money-saving tool" in China—the "Duty-Free Certificate," also known as the Customs Duty Exemption Certificate, is a document issued by customs to reduce or exempt tariffs. Whether importing equipment or exporting goods, making reasonable use of the Duty-Free Certificate can help companies save significant amounts on taxes and fees. Today, we will take you through a comprehensive understanding of the Duty-Free Certificate, from its meaning and uses to the application process and key points to avoid pitfalls!

What is a Duty-Free Form?

The duty-free certificate is a document issued by customs to reduce or exempt tariffs on eligible import/export goods according to national policies. It has two types: duty-free and taxable. For example, the main part of imported equipment may be duty-free, but accessories may be taxable.

Core Uses of Duty-Free Forms

Specific Enterprises Importing Equipment

Foreign-invested enterprises importing self-use equipment within their total investment amount can apply for duty-free certificates as long as the goods are not listed in the Catalogue of Non-Duty-Free Goods for Foreign Investment. Domestic enterprises engaged in encouraged projects under the Industrial Structure Adjustment Guidance Catalogue can also enjoy the same policy.

Scientific Research and Education Fields

Universities and research institutes importing scientific research equipment or testing instruments can be exempt from tariffs and VAT by submitting the Application Form for Duty-Free Scientific and Educational Supplies.

Special Zones and Policy Support

Enterprises in special customs supervision zones like free trade pilot zones and bonded areas can apply for duty-free certificates when importing equipment for R&D or production. For example, enterprises in Hainan Free Trade Port can import duty-free production equipment unless listed on the negative list.

Duty-Free Form Application Process

Preliminary Preparation

Qualification Confirmation: Enterprises must confirm whether they meet policy conditions. Foreign-invested enterprises need to obtain the Confirmation Certificate for Foreign-Invested Projects Encouraged by the State, while domestic enterprises need to complete project filing with the NDRC.

Document Checklist:

• Basic documents: Business license, contract, invoice, equipment list (with official seal).
• Special documents: Foreign-invested enterprises need to provide the Foreign-Invested Enterprise Approval Certificate, while research institutions need to submit the Scientific Research Project Filing Form.

Online Application

Submit the Application Form for Import/Export Goods Duty Reduction/Exemption and related documents through the Internet + Customs platform. The system automatically reviews document completeness and notifies enterprises via SMS or email if corrections are needed.

Customs Approval

The responsible customs office completes the review within 10 working days, focusing on enterprise qualifications, goods purpose, and HS code compliance. For complex technical parameters or inter-department coordination cases, approval may extend to 15 working days.

Certificate Collection

After approval, enterprises can print online or collect the Duty Reduction/Exemption Confirmation Notice at customs counters. The certificate is valid for 6 months, with one possible extension (maximum 6 months) under special circumstances.

IV. Key considerations

• Document consistency: Customs strictly requires document formatting and seals. Equipment names and models must exactly match the filing records.
• Item limit: Each duty-free certificate covers maximum 20 items. Excess requires separate applications.
• Validity: Certificates are valid for 6 months from issuance date. Expired certificates require reapplication.
• Supervision period: Duty-free equipment must be used under customs supervision (typically 5 years). Transfer or alternative use during this period requires tax repayment.

Conclusion

Effectively using duty-free certificates requires not only policy familiarity but also attention to details. Enterprises are advised to consult professional agencies in advance to avoid clearance delays due to document errors or procedural omissions. If you need agency services or other support in import/export trade, feel free to contact us!