CMS, China | Chinese Tax Regulation Update | February 2023
Dear Sir or Madam,
Please find enclosed our update on the latest developments on Chinese Tax Law.
Kind regards,
CMS, China
Circular
Number |
Issuance
Date |
Effective
Date |
Topic |
What is new? |
| Announcement [2023] No. 4 jointly released by the Ministry of Finance (“MOF”), the General Administration of Customs (“GAC”) and the State Administration of Taxation (“SAT”) |
2023-01-30 |
2023-01-30 |
Tax policies of return of goods exported through the cross-border e-commerce channels |
The Announcement clarifies the tax policies, for a one-year period from the date of issuance of this Announcement, of return of goods which were exported through the cross-border e-commerce channels. The following information in the Announcement is worth attention:
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If the exported goods (excluding food) are returned and brought back to China in an unchanged state within six months from the date of export which was declared under the cross-border e-commerce channels under the customs supervision code 1210, 9610, 9710 and 9810, (1) the import taxes of these returned goods are exempted and (2) the export duty, if levied upon export, can be refunded and VAT and Consumption Tax, if levied upon export, can be treated according to the policies of “return of goods which are domestically sold”. In particular, the exported goods under the customs supervision code 1210 shall, within six months from the date of departure from the special customs supervision areas or bonded logistics centers (Type B), be returned and brought back to the normal regions of China. |
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"Returned and brought back to China in an unchanged state" refers to the situation that (1) the minimum form of the exported goods which are returned shall remain basically as the same as that of the goods upon export, without accessories or parts added and without any processing or refitting, but the returned goods may still be regarded to be "in an unchanged state" simply after unpacking, inspection (laboratory testing), installation and commissioning; and (2) the returned goods shall be unused, unless the poor quality of the goods can only be found through trial use or the trial use of the returned goods by the customers is proved. |
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If the company has already received the export tax refund from the tax authorities for the exported goods which are now returned to China, the company shall still pay back the refunded tax to the tax authorities first before applying for the exemption of import taxes and the refund of export duty, if levied. |
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This information is provided for general information purposes only and does not constitute legal or professional advice. Copyright by CMS, China.
For further information, please contact:
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This information is provided for general information purposes only and does not constitute legal or professional advice. Copyright by CMS, China.
CMS, China
“CMS, China” should be understood to mean the representative offices in Mainland China of CMS Cameron McKenna Nabarro Olswang LLP, CMS Francis Lefebvre Avocats and CMS Hasche Sigle, working together. CMS, China is a member of CMS Legal Services EEIG, a European Economic Interest Grouping that coordinates an organisation of independent member firms. CMS Legal Services EEIG provides no client services. Such services are solely provided by the member firms in their respective jurisdictions.
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