Circular of the State Administration of Taxation Concerning Several Issues about Export Tax Refund

Circular of the State Administration of Taxation Concerning Several Issues about Export Tax Refund

Cai Shui Fa [2000] No. 165

December 22, 2000

The national taxation bureaus all provinces, autonomous regions, municipalities directly under the Central Government, and cities specifically designated in the state plan:

Agreed by the General Administration of Customs, the present Circular is issued against problems in the implementation of the export tax refund policies as below:

Article 1 For export goods sold to a foreign company by an export enterprise outside a bonded area, if the foreign company stores the goods with a warehousing enterprise within the bonded area, and the warehousing enterprise handles customs declaration issues when the goods leave the Chinese border, the export enterprise outside the bonded area can apply for tax refund to the taxation authority based on the customs declaration form for export of goods (the Export Tax Refund Sheet) with which the goods have entered the bonded area, the Export Registration Form of the warehousing enterprise as well as other vouchers required. The customs of the bonded area can only issue the customs declaration form for export of goods (the Export Tax Refund Sheet) for the goods to enter the bonded area after the above-said goods have completely left the Chinese border.

Article 2 When an export enterprise outside a bonded area is involved in processing trade operations, if the imported materials & spare parts are purchased from enterprises within the bonded area, the current taxation policies on charging processing o and processing operations of investor's raw materials can be applied.

Article 3 For production enterprises engaged in charging processing trade, if they have not completed the "Application Form for Charging Processing Trade" as required, they can not apply for tax refund for the corresponding re-exported goods.

Article 4 For the re-exported goods processed with imported materials by foreign trade enterprises, when the taxation authority in charge of tax refund calculates the amount of tax for the imported materials & spare parts that can be offset, if the taxation rate of the imported materials & spare parts is less than or equal to the tax refund rate of the re-exported goods, the amount of offset is calculated based on the taxation rate of the imported materials & spare parts; if the taxation rate of the imported materials & spare parts is bigger than the tax refund rate of the re-exported goods, the amount of offset is calculated based on the tax refund rate of the re-exported goods.

Article 5 For the samples and display items exported by production enterprises through the customs, if the production enterprises have eventually sold them abroad and have them paid in foreign exchange, they are allowed to apply for tax refund based on the customs declaration form for export of goods (the Export Tax Refund Sheet) for the exported samples and display items, the "verification certificate on export FX receipt" (the Export Tax Refund Sheet), as well as other required tax refund vouchers.

Article 6 The following products exported by production enterprises themselves (including foreign-funded enterprises or through agencies are regarded as self-produced products to enjoy a tax refund (exemption) treatment.
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