6 April 2017
Online CBA: Under What Circumstances are Export Enterprises not Allowed to Apply for Export Tax Rebate?
Q: Under what circumstances are export enterprises not allowed to apply for export tax rebate?
A: An export enterprise may not apply to tax administrations for export tax rebate (exemption) under the following circumstances:
1. When an export enterprise conducts export in the name of self-operated business but is not held liable for the quality, forex settlement or tax rebate risks of the export goods. In other words, the export enterprise is not held liable for claims for damages made by the foreign party for quality issues involving the export goods (except in the case where a party to be held responsible for quality issues is named in the contract). When an export enterprise is not held liable for failure in completing verification procedures caused by failure to settle forex payment due (except in the case where a party to be held responsible for forex settlement is named in the contract). When an export enterprise is not held liable for failure to obtain tax rebate due to issues arising from incomplete information or documents required in application for export tax rebate.
2. When an export enterprise conducts export in the name of self-operated business but in reality the export is conducted by other business operators (or enterprises, individually-owned business operators and other individuals) using the name of the export enterprise concerned.
3. After the export goods are inspected and released by Customs, the export enterprise itself or its appointed freight forwarder alters the description and specifications of the goods on the bill of lading (or the transport document handed to the consignor by the forwarder if another mode of transportation is used), resulting in discrepancies in details given in the customs declaration form and those in the bill of lading.
4. The export enterprise makes available to entities or individuals other than its appointed freight forwarder, customs broker or the freight forwarder appointed by the foreign importer (as supported by contract or other relevant certifications) to use blank export tax rebate (exemption) forms, export goods customs declaration form, export forex receipt verification form etc.
5. The export enterprise conducts export in the name of self-operated business but a certain batch of export goods is the subject of both an export sale contract and export agency contract (or agreement).
6. The export enterprise conducts export in the name of self-operated business but it has not actually engaged in any export activities or accepted any other export business referred by a middleman.
7. Other acts violating the relevant export tax rebate laws and regulations of China.
(The HKTDC provides one-on-one China Business Advisory Service free of charge to assist companies in resolving problems encountered when doing business in China. For enquiries and appointments, please call (852) 1830 668 or register online.)