A foreign capital enterprise may continue to enjoy the tax exemption. To encourage foreign capital investment, the State Council has formulated the policy of extending the preferential policy for import duty on foreign capital enterprise at the end of 1999. Imported plant-use equipment and its technology, the fittings, and spare parts for technological change, and equipment renewal or maintenance within the approved business scope by the foreign capital enterprise of the Encouraged category or Class B of Limited Category, the foreign funded Research and Development center, and the advanced-technology oriented and export-oriented enterprises may be exempt from Customs duty and import value-added tax. Those Funds which can enjoy the preferential policy must be free capital beyond the investment amount, i.e. the reserve fund, development fund, or depreciation and profit-after-tax fund.