Comprehensive Interpretation of the Measures for the Administration of Tax Collection on Import and Export Goods: From Tax Rebate Application to Compliance Operations

Asforeign tradepeople, facing off against customs policies is almost a daily routine. Especially when it comes toTax Refundmany practitioners are always both expectant and nervous. The Measures for the Administration of Tax Collection onimport and exportGoods of the Customs of the Peoples Republic of China (hereinafter referred to as the Measures) officially implemented on December 1, 2024, provides taxpayers with clearer tax - refund guidelines.

I. Situations in which tax refunds can be applied for: Expansion of the tax - refund scope

According to Articles 58 and 59 of the Measures, the situations in which taxpayers can apply for tax refunds are further clarified, and the application time is extended tothree years or one yearThe specific situations are as follows:

Situations in which tax refunds can be applied for within three years

• Tax refund for short - shipped goods: For short - shipped goods that are returned or compensated for the payment, the goods for which taxes have been paid can apply for a tax refund.
• Tax refund for damaged goods or quality issues: Compensation situations where goods cannot be delivered due to quality or specification issues.
• Compulsory return or supervised destruction: Special situations where the customs determines that the goods need to be returned or destroyed.

Situations in which tax refunds can be applied for within one year

• Return to the original state and re - export/import due to quality, specification or force majeure: Including the direct re - export of unused imported goods and the return of export goods.
• Export goods not shipped: Goods for which export taxes have been paid but have not been shipped out of the country due to certain reasons.

Highlights: The new regulations not only extend the tax - refund time towithin three yearsbut also clarify the scope of application for returns due to force majeure. This undoubtedly provides enterprises with more room for operation.

II. Tax - refund business handling process: Clear process and definite time limit

Although the policy content is rich, the operation steps are the focus of every taxpayer. The following is a concise analysis of the main tax - refund process:

The customs discovers over - collection of taxes

When the customs actively discovers problems, it will promptly notify the taxpayer to issue a tax amount confirmation letter, and the taxpayer needs to handle the tax - refund procedures withinthree months.When the materials are complete

Taxpayers apply for tax refunds

• : The customs starts the review on the date of acceptance.When the materials are incomplete
• : The customs needs to notify the content to be supplemented withinfive working days.Tips: Some tax - refund applications may require additional inspection certificates, such as those involving quality, specification or damage issues.

Tips: Some tax refund applications may require additional inspection certificates, such as those related to quality, specifications, or damage issues.

Review and decision

The customs needs to verify and notify the taxpayer of the result withinthirty daysafter acceptance:

• Agree to the tax refund: Issue a tax amount confirmation letter.
• Deny the tax refund: Provide reasons.

Tax refund and interest calculation

When refunding the tax, the interest generated from over - paid taxes will also be refunded, calculated according to the current demand deposit interest rate of the Peoples Bank of China.

III. Precautions: Be clear about the policy red lines

During the process of operating tax refunds, the following details need to be paid special attention to in order to avoid unnecessary disputes:

1. A written statement is required to waive the tax refund: If an enterprise decides to waive the tax refund or interest, it needs to formally notify the customs in writing.
2. Specific taxes are not refundable: Such as taxes or late fees that have been withheld and deducted. They are generally not refundable except as otherwise specified.
3. Tax refunds involve treasury management: It is necessary to comply with the relevant laws and regulations of the treasury.

Friendly reminder: The policy clearly mentions that in cases where the state has other regulations, tax refunds may not be granted. Therefore, enterprises should always pay attention to other relevant legal documents to ensure that they do not cross the red line.

IV. How to avoid tax - refund risks: Suggestions for compliant operations of enterprises

In order to smoothly enjoy the tax refund policy, enterprises need to do the following in their daily operations:

1. Improve document management: During the tax refund application process, complete and compliant materials are crucial, including commodity inspection certificates, return agreements, etc.
2. Regularly review taxes: Avoid problems of incorrect or omitted tax payments, and apply for tax refunds in a timely manner after discovering problems.
3. Take advantage of the policy window period: Understand the time limits for various tax refund applications to avoid missing the application opportunity due to time restrictions.
4. Strengthen communication with the customs: Especially when it comes to tax refunds involving quality issues, provide authoritative supporting documents in a timely manner to increase the success rate of tax refunds.

V. Conclusion: Cross the sea of taxation in the boat of compliance

Through this detailed interpretation of the Measures, we can see that the new policy not only provides enterprises with more flexible tax refund time and clear operation guidelines, but also sets higher requirements for the compliance of the application process. Mastering these details will help enterprises resolve tax risks and improve business efficiency in the complex foreign trade environment.

I hope this article can be your compass for dealing with foreign trade tax compliance, allowing you to move forward steadily on the road of foreign trade. In the future, may every import and export be as smooth as a sea voyage, and may your business continue to expand new horizons in the international market!