Import Case: How to Do the Tax Free Import Customs Clearance for Equipment of Government Encouraged Project?

Equipment and instruments imported from the government encouraged project can enjoy tariff free and even value added tax free if they really meet the relevant requirements. Seahog, the experienced China customs broker for new/used machines recently helped a Dongguan enterprise import and clear equipment that will be used for a project encouraged by government . As below are the relevant customs declaration sheets.

There were two separate shipments yet both were shipped from Japan and imported via Guangzhou Nansha port. The first shipment, arrived at Nansha port on May 29, 2025,  contained 11 x Full-form computer flat knitting machines, while the second shipment had another 30 x Computer flat knitting machines and it reached at Nansha on June 8, 2025. Seahog initiated the import declarations for both shipments on June 10, 2025 and helped the client obtain import duty/tax free. Below picture was taken when those machines were delivered to the factory. 

The operation flow

1.Apply technical improvement project filing with equipment list 

2.Equipment Bidding

3.Apply project confirmation from the municipal/ provincial government

4.Get customs files

5.Apply tax-free confirmation letter

6.Make declarations 

7.Obtain tax -free treatment

8.Inspection 

9.Customs release  

Required documents for China Import customs clearance

1.Commercial documents, including invoice, packing list, sales contract, and bill of lading

2. Technical documents, including  equipment specification manual , equipment pictures and technical standards

If the imported equipment is second hand/used, it is very important to ask a professional customs broker check if it is listed as key used mechanical and electrical products and check if pre-shipment inspection is required(normally yes). In addition, the importation of used equipment involves customs price verification and destination inspection, which means it is more complex and needs an experienced China customs broker.