中华人民共和国消费税实施细则

Detailed Rules and Regulations for the Implementation of the Provisional Regulations
of the People's Republic of China on Consumption Tax


Article 1
These Detailed Rules are formulated in accordance
with stipulations of Article 18 of "Provisional
Regulations of the People's Republic of China on C
-onsumption Tax" (hereinafter referred to as "the
Regulations").

Article 2
"Units mentioned in Article 1 of the Regulations r
efer to State-owned enterprises, collectively-owne
d enterprises, privately owned enterprises, joint-
stock enterprises, other enterprises, administrati
ve units, institutions, military units, social org
anizations and other units.

"Individuals" mentioned in Article 1 of the Regula
tions refer to individual business operators and o
ther individuals.

"Within the territory of the People's Republic of
China " mentioned in Article 1 of the Regulations
refers to the fact that places of despatch or the
locations of the consumer goods produced, contract
processed and imported which shall be chargeable t
o Consumption Tax (hereinafter referred to as "tax
-able consumer goods ")are in the territory.

Article 3
Specific scope of taxation for taxable consumer go
ods stated in the nd Tax Rates (Tax Amounts ) Table > attached to th
e Regulations shall be determined in accordance wi
th < Explanatory Notes for Scope of Taxation of CO
-nsumption Taxes> attached to these Detailed Rules

Selling price (excluding Value Added Tax to be col
lected from the purchaser, the same definition bel
ow ) of each big box (fifty thousand sticks, the s
ame definition below ) is 780 yuan or more, tax sh
all be chargeable in accordance with the tax rate
of Grade A cigarettes; selling price of each big b
ox is less than 780 yuan, tax shall be chargeable
in chargeable in accordance with the tax of Grade
B cigarettes.

Article 4
"Taxpayers dealing in taxable consumer goods with
different tax rates" mentioned to in Article 3 of
the Regulations refer to taxpayers producing and s
elling taxable consumer goods with more than two a
-pplicable tax rates.

Article 5
For taxable consumer goods which are "produced by
the taxpayer and shall be subject to tax upon sale
s" mentioned in Article 4 of the Regulations refer
to the transfer of the proprietary rights of taxa
ble consumer goods with compensation, that is, tra
nsfer of taxable consumer goods on the condition o
f receiving cash , goods, services or other econom
ic benefits from the transferee.

Article 6
"Self-produced taxable consumer goods for the taxa
pyer's own use in the continuous production of tax
able consumer goods " mentioned in Article 4 of th
e Regulations refer to taxable consumer goods whic
h are used as direct materials for the production
of final taxable consumer goods and which constitu
te a substance form of the final product.

"For other use" refers to the use of taxable consu
mer goods by taxpayers for the production of non-t
axable consumer goods; for construction in process
, administrative departments and non-production in
stitutions and provision of services; and taxable
consumer goods used as donations, sponsor, fund-ra
ising, advertising , samples, staff welfare, award
s , etc.

Article 7
"Taxable consumer goods sub-contracted for process
ing" mentioned in Article 4 of the Regulations ref
er to processed taxable consumer goods for which t
he principal provides raw materials and major mate
rials and for which the contractor only receives p
rocessing fees and supplying part of auxiliary mat
erials for processing, Taxable consumer goods prod
uced with raw materials provided by the contractor
, processed by the contractor with raw materials f
irstly sold to the contractor by the principal, an
d produced by the contractor with raw materials bo
ught under the name of the principal shall not be
regarded as taxable consumer goods contracted for
processing but shall be regarded as sales of self-
produced taxable comsumer goods subject to Consump
tion Tax regardless of whether or not taxpayers tr
eat them as sales in their accounts.

Consumption Tax shall not be levied on taxable con
sumer goods contracted for processing which are fo
r direct sale.

Article 8
In accordance with provisions of Article 4 of the
Regulations, the time when the liability to pay Co
nsumption Tax arises is as follows:

1.For taxpayers selling taxable consumer goods, th
e time when the liability to pay tax arises is:

a. For taxpayers adopting the settlement methods o
f selling on credit and receipt by instalments. th
e time when the liability to pay tax arises shall
be the day of the day of collection as stipulated
in the sales contract.

b. For taxpayers adopting the settlement method of
receipt in advance, the time when the liability t
o pay tax arises is the day on which the taxable c
onsumer goods are delivered.

c. For taxpayers adopting the method of entrusted
for collection or entrusted with the banks for col
lection, the time when the liability to pay tax on
the sale of taxable consumer goods airses is the
day when the taxable consumer goods are delivered
and the procedure for entrusted collection are com
pleted.

d. For taxpayers adopting other methods of settlem
ent , the time when the liability to pay tax arise
is the day when they have received the sales paym
ent or the evidence to obtain the sales payment.

2. For taxpayers using self-producing taxable cons
umer goods , the time when the liability to pay ta
x arises is the day of transfer for use.

3. For taxable consumer goods contracted for proce
ssing by taxpayers, the time when the liability to
pay tax arises is the day of receiving the goods
by the taxpayer.

4. For taxable consumer goods imported by taxpayer
s, the time when the liability to pay tax arises i
s the day of import customs declaration.

Article 9
"Sales volume" mentioned in Article 5 of the Regul
ations refers to volume of taxable consumer goods
which is further specified as follows:

1. For the sale of taxable consumer goods, it is t
he sales volume of the taxable consumer goods.

2. For own usage of self-producing taxable consume
r goods, it is the volume of the taxable consumer
goods transferred for use.

3. For taxable consumer goods contracted for proce
ssing, it is the volume of taxable cusumer goods c
ollcted back by the taxpayers.

4. For imported taxable consumer goods, it is the
tax assessable volume for import of taxable consum
er goods certified by the customs office.

Article 10
For taxable consumer goods whose tax payable shall
be calculated according to the amount on volume m
ethod, the conversion standard of the measurement
units shall be as follows:

1.Beer 1 ton = 988 litres
2.Yellow wine 1 ton = 962 litres
3.Gasoline 1 ton = 1388 litres
4.Diesel oil 1 ton = 1176 litres

Article 11
Pursuant to the stipulations of Article 5 of the R
-cgulations, tor taxable consumer goods sold by ta
xpayers where the sales amounts are settled in for
eign currencies, the Renminbi conversion rate for
the sales amount to be selected can be the State o
fficial foreign exchange rate (the mid-rate in pri
nciple) quoted on the day of settlement or the fir
st day of that month, Taxpayers shall determine in
advance the conversion rate to be adopted, once d
etermined, no change is allowed within one year.

Article 12
"Sales amount " mentioned in Article 6 Regulations
does not include Value-added Tax that shall be co
llected from the purchasers. If the amount of Valu
e-added Tax has not been deducted from the sales a
mount of the taxable consumer goods, or if the pri
ce and the amount of Value-added Tax are jointly c
ollected because the special invoice of Value-adde
d Tax shall not be issued by the taxpayers , it sh
all be converted into sales amount excluding the a
mount of Value-added Tax for computing the Consump
tion Tax. The conversion formula is:

Sales amount of Sales amount including VAT
taxable consumer = ???????????????
goods (1 + VAT rate or levy rate)

Article 13
If taxable consumer goods with the tax payable com
puted under the rate on value method are sold toge
ther with the packaging, the packaging shall be in
cluded in the sales amount of the taxable consumer
goods for the levy of Consumption Tax regardless
of whether or not the packaing is priced individua
lly and regardless of how it is computed in the ac
counts. If packaging is sold along with products w
ithout being priced but with a deposit obtained, s
uch deposit item shall not be included in the sale
s amount of taxable consumer goods for tax levy, H
owever, deposits which are not refunded because th
e packaging is not returned within a time limit or
are received for more than one year shall be incl
uded in the sales amount of taxable consumer goods
and be subject to Consumption Tax according to th
e applicable Consumption Tax rate.

In cases where the packaging has been priced when
sold along with taxable consumer goods and deposit
s have been received in addition, the amount shall
be included in the sales amount of the taxable co
nsumer goods and be subject to Consumption Tax acc
ording to the applicable Consumption Tax rate if t
he packaging not returned by taxpayers. within a d
esignated time limit.

Article 14
"Other charges" mentioned in Article 6 of the Regu
lations refer to other funds. fund raising charges
, profits returned, subsidies, damages on breach o
f contract (interest on deferred payment ), handin
g charges, packaging fees, contingency charges, qu
ality charges, freight and loading and unloading c
harges, commissioned payments and charges of any o
ther nature which are in addition to the price cha
rged, But the following amounts shall not be inclu
ded:

1. A freight invoice of transportation organizatio
ns is issued to the purchasers.

2. The same invoice that is forwarded by the taxpa
yer to the purchasers.

All other charges, regardless of whether or not th
ey are income of the taxpayer, shall be included i
n the sales amount in computing the tax payable.

Article 15
"The selling price of similar consumer goods" ment
ioned in Article 7 and Article 8 of the Regulation
-s refers to the selling price of similar consumer
goods sold in that month by taxpayers or withhold
ing agents, If the selling prices of similar consu
mer goods vary in various periods within that mont
h, tax shall be computed according to the sales vo
lume on weighted average basis . However, the sale
s of taxable consumer goods shall not be computed
under weighted average in one of the following con
ditions:

1. The selling price is obviously low and without
proper justification;

2. There is no selling price.

If there is no sales or if sales has not been comp
leted in that month, tax shall be paid according t
o the selling prices of similar consumer goods of
last month or the most recent month.

Article 16
"Cost" mentioned to in Article 7 of the Regulation
s refers to the product production cost of taxable
consumer goods.

Article 17
"Profit " mentioned in Article 7 of the Regulation
s refers to profit computed according to national
average cost-plus margin rate of taxable consumer
goods. National average cost-plus margin rate of t
axable consumer goods shall be determined by the S
tate Administration of Taxation.

Article 18
"Cost of material" mentioned in Article 8 of the R
egulations refers to the actual cost of processing
materials provided by contractor.

Taxpayers contracted taxable consumer goods for pr
ocessing must truthfully mdicate the cost of mater
ial in the contract processing contracts (or provi
de in other forms). In cases where no cost of mate
rial is provided, the local competent tax authorit
ies of the contractor shall have the right to dete
rmine the cost of material.

Article 19
"Processing fee" mentioned in Article 8 of the Re
guations refers to all fees the contractor receive
d from the principal for the processing of taxable
consumer goods (including the actual cost of auxi
liary materials paid under commissioned payments).

Article 20
"Customs dutiable value" mentioned in Article 9 of
the Regulations refers to the customs dutiable va
lue determined by the customs office.

Article 21
In accordance with Article 10 of the Regulations,
the power to determine dutiable value of the taxab
le consumer goods is stipulated as follows:

1. Dutiable value for Grade A cigarettes and white
spirits made from cereal shall be determined by t
he State Administration of Taxation.

2. Dutiable value for other taxable consumer good
shall be determined by the local tax bureaus direc
tly under the State Administration of Taxation.

3. Dutiable value for imported taxable consumer go
ods shall be determined by the customs office.

Article 22
"As otherwise determined by the State Council" men
tioned in Article 11 of the Regulations refers to
taxable consumer goods export of which is restrict
ed by the State.

Article 23
If rejection by customs occurs on exported taxable
consumer goods that has completed the tax refuns
or tax exemption is allowed for the import of retu
rned export goods from overseas, export customs de
clarer shall report and pay back the amount of Con
sumption Tax refunded timely to local competent ta
x authorities.

In cases where tax exemption for direct exported t
axable consumer goods has been completed by taxpay
ers, rejection by customs occurs and exported good
s are returnes from overseas, and if tax exemption
is granted at the time of importation, the taxpay
ers may defer to pay back the tax upon approval by
the local competent tax authorities and pay back
Consumption Tax to the local competent tax authori
ties when the goods are transferred for domestic s
ale in the territory.

Article 24
If taxable consumer goods sold by taxpayers are re
turned by purchasers because of quality and other
reasons, the amount of Consumption Tax paid may be
refunded upon approval by local competent tax aut
hortites.

Article 25
Pursuant to the provisions of Article 13 of the Re
gulations, if taxpayers sell in other county(or ci
ty )or appoint agent to sell in other county (or c
ity) taxable consumer goods produced by the taxpay
ers, the taxpayers shall pay Consumption Tax to wh
ere the accounting is done or where the taxpayer i
s located after the taxable consumer goods are sol
-d.

If thhe taxpayer's head office and branch office a
re not in teh same county (or city), Consumption T
ax shall be paid at the location where the branch
office produce the taxable consumer goods. However
. upon approval by the State Administration of Tax
-ation and the relevant local tax bureau, the Cons
umption Tax payable of the branch office of the ta
xpayer may be paid in consolidation by the head of
fice to the local competent tax authorities where
the head office is located.

Article 26
These Detailed Rules shall be interpreted by the M
inistry of Finance or by the State Administration
of Taxation.

Article 27
These Detailed Rules shall be implemented on the d
ate the Regulatios are promulgated.