On September 1, 2014, the Ministry of Finance, the General Administration of Customs and the State Administration of Taxation jointly issued a circular (hereinafter, the "Circular") indicating that the current pilot program for export tax refund on goods under financing lease in the Tianjin Dongjiang Bonded Port Area will be expanded for general implementation nationwide.

The scope of the financing lease is expanded this time to cover goods including ships and marine structures. As a result, relevant financing lease enterprises will benefit.

The Circular specifically stipulates that the pilot program for the export tax refund policies to refund value-added taxes and consumption taxes applies to ships, aircraft, aircraft engines, locomotives, train cars and other goods (1) which are leased by financing lease enterprises, financial leasing companies and their project subsidiaries (hereinafter, the "Financing Lessee") by way of financing lease to overseas lessors for a minimum of five years and (2) which actually depart from China after declaration to customs. Marine structures which are purchased by the Financing Lessees, produced by domestic production enterprises and leased by way of financing lease to domestic offshore oil and gas exploration enterprises with a term of lease not less than 5 years shall be deemed to have been exported and be subject to the pilot program for the export tax refund policy to refund value-added taxes and consumption taxes.

The Circular also provides explanation regarding the specific calculation method for the tax refund, the specific scope of exported goods, the scope of marine structures, and the definitions of financing lease enterprises and financing lease.