Beijing, Dec 20: China will tighten checks of capital goods imports by foreign firms to stop investors from evading import duties or deceiving their local joint venture partners, the China Daily said.

From January 15, 1998, foreign firms must apply for import appraisal papers with the state administration for the inspection of import and export commodities, the newspaper said.

The documents bearing valid administration stamps need to be presented to customs when clearing imports of capital goods, it said, quoting a circular issued by the administration and customs.

Tariff evasion had become rampant since China abolished tax exemptions on capital goods imports in early 1996, it said.

``The move is an important measure for China in its efforts to forestall any possible deceitful activities by foreign investment enterprises,'' director of the administration's inspection department Guo Xiao'en, told the newspaper.

Many foreign businesses declared lower than actual values on capital goods imports to evade import tariffs, Guo said. China's import duties and value-added taxes can add as much as 40 per cent to the cost of such goods.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.