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China drops tariffs on CBM equipment imports

Updated: 2011-08-30 17:29

(Xinhua)

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BEIJING - China will eliminate tariffs and value-added taxes on equipment and components used to develop coalbed methane (CBM) refining in mines starting this year, according to a joint statement issued by the Ministry of Finance (MOF) and other central government departments.

The tariffs will be dropped in order to accelerate the exploration of CBM in China's coal mines, according to the statement.

CBM is a type of natural gas that can be extracted from coal beds.

China CBM, a Chinese company that is engaged in prospecting and developing the country's CBM resources, and its domestic and foreign partners will be exempted from tariffs and value-added taxes on imports of machines, instruments and components that are used in CBM exploration operations from 2011 to 2015, according to the statement.

Other domestic companies engaged in CBM exploration will be able to enjoy similar treatment after their applications are approved by the MOF, the General Administration of Customs and the State Administration of Taxation, according to the statement.

However, these companies must make sure to file their applications to the MOF before their imports arrive at Chinese ports, the statement said.

China maintains strict requirements for market access to its CBM industry. The country previously planned to extract 10 billion cubic meters of CBM from its mines during the 11th Five-Year Plan period (2005-2010), but only extracted 2 billion cubic meters during the period.

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