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The bureaus of state taxation of all provinces, autonomous regions, municipalities directly under the State Council and cities specifically designated in the state plan,
Recently, we have received letters from some bureaus of state taxation inquiring whether the products processed upon entrustment of and taken back by a production enterprise before formally going into production can be deemed as like products of the self-made ones of this enterprise to make export tax refund. Upon study, we hereby render the following reply: The products processed upon entrustment of a production enterprise before formally going into production are like products to the self-made ones of this enterprise after having formally gone into production, and if the enterprise takes back and exports the products for the first time, it may not be subject to the restriction "To be exported to the foreign businessman that imports the self-made products of the enterprise" as prescribed in paragraph 2 of Article 4 of the Circular of the State Administration of Taxation concerning Tax Refund for the Export Products Deemed as Self-made Products (Guo Shui Han [2002] No. 1170, hereinafter referred to as the Document No. 1170). If the aforesaid products for export simultaneously meet the other conditions as prescribed in Article 4 of the Document No. 1170 (excluding paragraph 2), they are permitted to be deemed as self-made products for export tax refund (exemption) under strict examination of the competent taxation organ.
State Administration of Taxation
January 8th, 2008