The China Glass Network recently reported that the State Administration of Taxation and the Ministry of Commerce have issued a notice, effective from March 1st, which outlines strict rules for export enterprises. According to the notice, if an enterprise engages in any of the seven specified activities listed in the right-hand table, it is prohibited from submitting its self-operated or entrusted export business for tax refund (exemption) claims with the tax authorities.
The two government departments emphasized that any export enterprise found to be involved in these activities while claiming tax refunds will face severe consequences. If the tax refund has already been processed, the authorities will reclaim the funds and impose penalties. The fines can range from one to five times the amount of the fraudulent tax refund. Additionally, provincial-level or higher tax authorities may suspend the export tax rebate rights of such enterprises for a period exceeding six months. During this suspension, no export-related tax refunds or exemptions will be granted for goods exported, entrusted, or handled through agency arrangements.
The notice lists seven key scenarios that trigger these restrictions:
1. Export enterprises act as self-operated exporters but do not bear the responsibility for product quality, foreign exchange settlement, or tax refund procedures. For example, they are not liable for quality issues unless explicitly stated in the contract, nor are they responsible for failing to settle foreign exchange on time, unless agreed upon in the contract. They also avoid liability for non-refundable taxes caused by errors in the export tax rebate documentation.
2. The actual export operations are conducted by third parties—such as other businesses, individuals, or operators—not directly affiliated with the exporting enterprise.
3. After customs inspection, the export enterprise or freight forwarder alters the bill of lading or shipping documents, resulting in discrepancies between the export declaration form and the ocean bill of lading.
4. The enterprise hands over critical tax documents like blank export declarations or foreign exchange verification forms to freight forwarders, customs brokers, or entities designated by foreign importers. These documents are then used by other parties without proper contractual agreements or supporting documents.
5. The same batch of goods is exported under both a sales contract and an export contract (or agreement), indicating potential duplication or fraud.
6. The enterprise has not participated in the actual export process but instead exports goods under its own name based on introductions from intermediaries.
7. Any other violations of national export tax rebate laws and regulations.
These new measures aim to prevent tax evasion and ensure that only legitimate export activities qualify for tax refunds. Enterprises found in violation will face not only financial penalties but also long-term restrictions on their ability to engage in export activities. This update reflects the government’s ongoing efforts to strengthen oversight and maintain the integrity of the export tax system.
Window Gauze,Woven Window Screen,Light Cross Window Screen,Thickened Cross Window Screen
Shaoxing Shaoqing Textile Co.,Ltd. , https://www.shaoqingtextile.com