China: Customs guidance, imports of aviation supplies | KPMG | GLOBAL

China: Customs guidance, imports of aviation supplies, aircraft operating leases

China: Customs guidance, imports of aviation supplies

China’s General Administration of Customs issued guidance concerning the collection of tax (customs duty) and price verification with respect to imported aviation supplies and aircraft operating leases.


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Before this new guidance, the methods used for classifying and administering the tax (duty) collection with respect to imported aviation supplies were not unified among local customs offices. Also the price verification of maintenance and overhaul fees at the end of an aircraft lease differed among the customs authorities. These differences increased customs clearance costs and reduced customs clearance efficiency. The guidance, therefore, was issued to standardize enforcement and to regulation the management of imports of aviation supplies. 

The guidance was issued in two parts, known in English as: 

  • “Announcement of the General Administration of Customs on issues concerning collection of taxes on maintenance guarantee for aviation supplies” or Announcement of the General Administration of Customs [2016] No. 6—in general this guidance addresses the protection system of reliance interest of airlines; facilitates customs clearance and tax payment of aviation supplies with maintenance guarantee; and increases the responsibility of airlines, requiring them to keep and manage the related documents necessary for tax payment
  • “Announcement on revising the relevant provisions on the assessment and determination of the duty-paid value of aircraft under operating leases” or Announcement of the General Administration of Customs [2016] No. 8—in general, this guidance enhances and strengthens provisions of previous announcements 


Read a February 2016 report [PDF 314 KB] prepared by the KPMG member firm in China: The Customs of the People's Republic of China Issued New Rules on Tax Collection and Price Verification of Imported Aircraft 

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