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The imported equipment for melamine production at Jinfeng Coal Chemical has successfully passed the zero-tariff application

2020-12-18View Original

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Jinfeng Coal Chemical’s imported equipment for melamine production has successfully passed the zero-tariff application process. Author/Source: Jinfeng Coal Chemical. Date: 2020-12-16. Clicks: 71. Good news has recently come from Jinfeng Coal Chemical’s melamine production team: the main reactor used in the melamine production process has successfully met the requirements for a zero-tariff treatment. Merely this alone saves over 6 million yuan in tariffs; by taking advantage of these tax benefits, project costs are reduced, thereby laying a solid foundation for the project’s commissioning and testing. To ensure the high-quality completion of the zero-tariff approval process, the company assigned dedicated personnel to handle tax matters, and conducted numerous communications and consultations with the project managers of the trading companies as well as the tax officials at the Jincheng and Taiyuan customs. Given the large tax-related amounts associated with the reactor equipment in this project, the determination of the tax ID has a direct impact on whether taxes in the millions must be paid. To this end, the company invited officials from the Second Comprehensive Department of Taiyuan Customs and the Inspection Section of Jincheng Customs to conduct on-site inspections at the company. The project’s technical staff explained the principles, structure, and logistics processes of the reactor, and held detailed discussions regarding the reactor’s control systems, instruments, regulation mechanisms, temperature control, as well as auxiliary systems such as molten salt heat conduction. This was done to lay a technical foundation for avoiding the need to pay a 10% tariff, which would otherwise apply in cases where the device is classified as a heat exchanger. It is reported that the company submitted an application to Taiyuan Customs on May 20, 2019, for the approval of a tax code for the reactor equipment. After one and a half years, it worked with the design team to revise three versions of the project feasibility study, and prepared in detail various documents such as applications for customs registration, pre-approval requests from the customs, information on tax code classification, detailed drawings of the reactor equipment, as well as descriptions of its principles, structure, and characteristics. Following reviews by Jincheng Customs, Taiyuan Customs, and **Shanghai Customs, the customs finally determined that the reactor equipment under this project was subject to zero tariffs. The main reactor was shipped from an Italian port on November 18, and is expected to arrive at the Tianjin port on December 22. The timely confirmation of the zero-tariff HS code lays the foundation for completing customs clearance procedures for the reactor equipment, marking a key step forward in the project’s development.

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