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2016-06-15
1. Collection procedures of the national revenue
In accordance with Methods for the Collection of National Revenue from Transferring Greenhouse Gases Emission Reductions in China CDM Projects (C.J. [2012] No.129), the main procedures for the collection of the national revenue are as follows:
(1) the enterprises carrying out the CDM projects (the “project owners”) shall submit the Payment Acknowledgement of National Revenue in China CDM Projects in writing with their official seals to the Management Centre of China CDM Fund (the “Management Centre”) no later than 15 business days after every transfer of emission reduction is verified.
(2) the project owners shall make the payment of the national revenue to the special designated amount within 15 business days after they receive the income from every certified emission reduction transfer. Where there are relevant provisions in the transfer contract of emission reductions, the national revenue may also be paid directly by the buyer of the emission reductions to the Management Cenre.
If the buyer of the emission reductions uses tangible assets such as equipment or intangible assets like patented technology to pay the contract price to the project owner, the project owner shall pay the national revenue no later than 15 business days after the transfer of emission reduction is verified.
(3) the Management Centre shall issue a receipt of payment to the project owner within 15 business days after it receives the national revenue and relevant certificates. In the case of the national payment is directly paid by the buyer of the emission reductions in accordance with the transfer contract, the Management Centre shall provide the certificate of payment of the national revenue to the project owner after receiving the relevant national revenue.
2. Penalties for delayed payment, and failure to pay any or the full amount of the national revenue
Article 113 of Methods for the Collection of National Revenue from Transferring Greenhouse Gases Emission Reductions in China CDM Projects (C.J. [2012] No.129) provides that, in the event of delayed payment, and failure to pay any or the full amount of the national revenue, Ministry of Finance and NDRC will take measures and impose punishments in accordance with Penalties and Punishment Ordinance for Illegal Fiscal Acts (Decree of the State Council No.427) and Regulation of CDM Project Operation (Amended) (NDRC, MOST, MOFA & MOF Order No. 11).
3. Explanations of the payment of national revenue by project owners
With respect to Methods for the Collection of National Revenue from Transferring Greenhouse Gases Emission Reductions in China CDM Projects (C.J. [2012] No.129), the important notes on the payment of national revenue in CDM projects are as follows:
(1) the calculation formula of national revenue:
National revenue = (certified emission reduction – the part of certified emission reduction donated to UN Climate Change Adaptation Fund) × unit price of transaction × the proportion attributable to national revenue
The part of certified emission reduction donated to UN Climate Change Adaptation Fund means 2% of every certified emission reduction that is donated to UN Climate Change Adaptation Fund as set out in the rules of UN clean development mechanism.
The unit price of transaction means the unit price for the transfer of emission reductions agreed on between the project owner and the buyer in the transfer contract and approved in writing by NDRC.
The proportion attributable to national revenue is set out in Regulation of CDM Project Operation (Amended).
(2) Payment currency of national revenue
The national revenue shall be paid in the currency agreed in the transfer contract of emission reductions or in RMB.
If paid in RMB, the exchange rate shall be the spot exchange buying rate on the date of settlement of exchange of the national revenue.
If the buyer of the emission reductions uses tangible assets such as equipment or intangible assets like patented technology to pay the contract price to the project owner, and the national revenue is paid in RMB, the exchange rate shall be the central parity rate of the currency agreed in the transfer contract to RMB quoted by the People’s Bank of China on the date the certified emission reduction is issued.
(3) Documents to be submitted by the project owner
The project owner shall file the copies of the transfer contract, business licenses and contact information of the two parties to the Management Center no later than 15 business days after the transfer contract of emission reductions becomes effective; if there is any change to the above documents and information, the project owner shall notify the Management Center in writing and provide relevant certificates within 15 business days from the date it is changed.
When paying every national revenue, the project owner shall submit Payment Acknowledgement of National Revenue in China CDM Projects with its official seal, and if paid in RMB, also the copy of the bank’s voucher of settlement of exchange with the special financial seal of the company or other certificates of settlemetn of exchange.
From : China CDM FundPage Views : 350