Regulations for the Collection of Commodity Tax Article 75

When a manufacturer produces taxable goods and purchases another taxable good as raw material for production, they can apply for exemption from commodity tax by filling out a Tax Exemption Application for Purchased Materials in triplicate; the first copy is the application, and the other two copies are approval document. After approval by the competent tax authority and retention of the first copy and two copies by the manufacturer, they should be processed according to the following provisions:(1)If the taxable materials are purchased directly from a local supplier, the manufacturer will give the two copies to the supplier who shall keep the second copy, and submit the third copy to the local tax authority after affixing its own chop; the supplier should produce a tax exemption certificate.(2)If the taxable materials are imported, the manufacturer will give two copies to Customs for exempting the collection of commodity tax. Customs will save the second copy and return the third copy, which has affixed the Customs chop, to the manufacturer after the exemption is approved. The manufacturer will then submit the third copy to the unit-in-charge of Customs in exchange for a tax exemption certificate.(3)If the taxable materials are supplied by the manufacturer itself, the manufacturer will save the second copy of the application and submit the third copy to the local tax authority after affixing its own chop; the manufacturer will produce a tax exemption certificate itself.