Duty-free section. Look at this:

Ministry of Finance State Taxation Administration of The People's Republic of China on

Notice of farmers' professional cooperatives on tax policies

Caishui [2008] No.81

All provinces, autonomous regions, municipalities directly under the central government, the finance departments (bureaus), the State Taxation Bureau, the local taxation bureau, and the Finance Bureau of Xinjiang Production and Construction Corps:

With the approval of the State Council, the relevant tax policies of farmers' professional cooperatives are hereby notified as follows:

First, the sale of agricultural products produced by members of farmers' professional cooperatives is regarded as the sale of self-produced agricultural products by agricultural producers, which is exempt from value-added tax.

II. For duty-free agricultural products purchased by general VAT taxpayers from farmers' professional cooperatives, the VAT input tax can be deducted at the deduction rate of 13%.

Three, the agricultural film, seeds, seedlings, fertilizers, pesticides, agricultural machinery sold by farmers' professional cooperatives to the members of the cooperative are exempt from value-added tax.

Four, the farmers' professional cooperatives and members of the cooperative signed the purchase and sale contracts of agricultural products and agricultural means of production, shall be exempted from stamp duty.

The term "farmers' professional cooperatives" as mentioned in this Notice refers to the farmers' professional cooperatives established and registered in accordance with the provisions of the Law of the People's Republic of China on Farmers' Professional Cooperatives.

This notice shall be implemented as of July 1 2008.

June 24th, 2008