China Extends Export Tax Rebate Scheme

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SHANGHAI – China’s General Administration of Customs, Ministry of Finance and State Administration of Taxation jointly announced that they will be expanding the scope of the national export tax rebate pilot program to cover eight ports starting from September 1. The purpose of this is to encourage exports through Shanghai’s Yangshan Free Trade Port, and is also hoped to incentivize exports amidst the country’s slowing foreign trade sector. Export tax rebates refer to the refunds of indirect taxes, including value-added, business and consumption taxes, paid by exporting businesses in the production and distribution of goods and services.

The announcement confirmed that the pilot program will be extended to eight ports in Nanjing, Suzhou, Lianyungang, Wuhu, Jiujiang, Yueyang, Qingdao and Wuhan, and applies to containers transported by eligible enterprises from these ports to Yangshan, where they depart from China. To be eligible, exporting businesses must have good taxpaying records and have no smuggling or regulation infringements in the last three years. The carriers of the containers must also be equipped with navigation, position and surveillance devices.

Previously, only the last two ports were covered under the program. Taxes will now be refunded directly at these feeder ports, in contrast with the previous practice where tax refunds are made after the goods exported had left Shanghai.

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