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China backs tax exemption trial for Taiwan's cosmetics in Pingtan

( chinadaily.com.cn )

Updated: 2014-05-27

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Zhang Aiping, head of the cosmetics regulatory department of the China Food and Drug Administration (CFDA), visited the Pingtan Comprehensive Pilot Zone (PCPZ) on May 14 to discuss tax exemption on cosmetics imported from Taiwan and sold at a commodity market in Pingtan.

Currently, the commodity market is authorized to exempt taxes on six categories of Taiwan goods: oil and grain products, farm products, textiles and garment, artware, light industrial products and medicine. The daily cap for commodities per person is 6,000 yuan ($960).

Adding cosmetics to the list is the hope of many Taiwan enterprises in Pingtan, said You Mengjun, deputy director of PCPZ’s administrative committee.

Pingtan also hopes to get the green light in reform of the registration and filing system over normal cosmetics, and simplify the executive approval process for setting up enterprises in cosmetics production, You said.

Pingtan is China’s only comprehensive pilot zone open to Taiwan, and is about to become a zone under special customs supervision and management, so it is possible to set up a small pilot site at the commodity market initially, and gradually expand the range, as long as Pingtan can come up with a detailed action plan, Zhang said.

On whether cosmetics can be added to the list of Taiwan-imported tax-exempt goods, Zhang suggested Pingtan seek help from Fujian provincial government, then CFDA will do its review.