Article 1 Within the territory of the People'S Republic of China, the owners or managers of vehicles and vessels shall be the taxpayers of vehicle and vessel tax and shall pay vehicle and vessel tax according to the provisions of the present Rules.

The term "vehicles and vessels" as mentioned in the present Rules means the vehicles and vessels that shall be registered at the administrative departments of vehicles and vessels in accordance with law.

Article 2 The tax amount applicable to vessels and vehicles shall be decided in light of the Table of the Tax Items and Tax Amount of Vehicle and Vessel Tax attached hereto.

The finance department and the taxation department under the State Council may divide sub-items in light of the actual conditions and determine the tax amount range of each vehicle sub-item and the specific tax amount applicable to vessels within the tax item scope and tax amount range as specified in the Table of the Tax Items and Tax Amount of Vehicle and Vessel Tax. The specific tax amount applicable to vehicles shall be decided by the people'S governments of the provinces, autonomous regions or municipalities directly under the Central Government within the specified tax amount under each sub-item.

Article 3 The vehicle and vessel tax shall be exempted from the following vehicles and vessels:

(1) Non-motor vehicles and vessels (exclusive of non-motor barges);

(2) Tractors;

(3) Fishing vessels for fishery and cultivation;

(4) Special vehicles and vessels for army and armed police;

(5) Vehicles and vessels used by police;

(6) Vessels whose tonnage duties have been paid according to the related provisions; and

(7) Vehicles and vessels of the embassies and consulates of foreign countries in China, institutions of international organizations in China and their related personnel, which shall be exempted from tax as prescribed in the related laws of China or the international treaties concluded or acceded to by China

Article 4 The people'S governments of the provinces, autonomous regions or municipalities directly under the Central Government may regularly grant tax deduction or exemption to urban and rural vehicles and vessels used for public transportation in light of the actual conditions.

Article 5 Vehicle and vessel tax shall be levied by local tax authorities.

Article 6 The payment place for vehicle and vessel tax shall be decided by the people'S governments of the provinces, autonomous regions or municipalities directly under the Central Government in accordance with the actual conditions.

In case a vehicle or vessel is used in more than one province, autonomous region or municipality directly under the Central Government, the payment place shall be the register place of such vehicle or vessel.

Article 7 The time when the obligation arises for a taxpayer to pay vehicle and vessel tax shall be the month as recorded in the registration certificate for vehicle or vessel or driving license as issued by the administrative department of vehicle and vessel.

Article 8 Vehicle and vessel tax shall be declared and paid on an annual basis. The specific declaration period shall be decided by the people'S governments of all provinces, autonomous regions or municipalities directly under the Central Government.

Article 9 In case the owner or manager of a vehicle or vessel fails to pay vehicle and vessel tax, the user shall pay vehicle and vessel tax first.

Article 10 An insurance institution which undertakes the business of compulsory traffic accident liability insurance for motor vehicles, shall be the withholding agent of the tax on motor vehicles and vessels, and shall withhold vehicle and vessel tax in accordance with law.

The standards for the withholding commission charge paid to a withholding agent by the tax authorities shall be determined by the finance department and the taxation department under the State Council.

Article 11 When a withholding agent of the tax on motor vehicles and vessels withholds the vehicle and vessel tax in accordance with law, the taxpayer may not reject.

Article 12 The administrative departments of vehicles and vessels of each level shall, in terms of providing relevant information on vehicle and vessel administration, assist local tax authorities to intensify the administration of vehicle and vessel tax collection.

Article 13 The administration and collection of vehicle and vessel tax shall be conducted according to the Law of the People'S Republic of China on the Administration of Tax Collection and the provisions in the present Rules.

Article 14 The present Rules shall go into effect as of January 1, 2007. The Interim Regulations on Vehicle and Vessel License Plate Tax promulgated by the former Administrative Council on September 13, 1951 and the Interim Regulations of the People'S Republic of China on Vehicle and Vessel Usage Tax as promulgated by the State Council on September 15, 1986 shall be concurrently repealed.