Policy Interpretation | The most comprehensive cross-border e-commerce export tax refund strategy in 2023

1. Conditions required for tax refund on export goods:

1. The goods produced or exported must be goods or products within the scope of value-added tax and consumption tax.
2. The goods must be declared for export and goods exported to the export processing zone are also deemed to have left the country.
3. The goods must be products that the company is financially able to sell for export.
4. The goods must be exported to receive foreign exchange.

The state stipulates that foreign trade enterprises exporting goods must meet the above four conditions at the same time.

If a goods production enterprise applies for tax refund for exported goods, special attention should be paid to the fact that the goods applied for tax refund must be self-produced goods of the production enterprise or deemed to be self-produced goods before tax refund can be processed.

2. Qualifications required for tax refund on export goods:

Registration information:The company's business scope must include "import and export of goods or technology"

Handle foreign trade operator qualification registration (Ministry of Commerce)

Customs declaration registration certificate of the consignee and consignor of import and export goods or receipt of registration of the consignee and consignor of import and export goods from the customs (customs)

Note:Since February 1, 2019, the customs will no longer issue a "Registration Certificate for Customs Declaration Units" (Import and Export Consignee and Consignor). If the enterprise really needs it, the Customs can issue a "Customs Registration Receipt for the Consignee and Consignor of Import and Export Goods".

Open an electronic port and receive a legal person card and operator card (electronic port)

Register the enterprise directory and open the foreign exchange receipts and payments declaration and goods trade monitoring system (SAFE)

Upgrade general taxpayer (tax bureau)

Export tax refund (exemption) registration form (foreign trade type) (Taxation Bureau)

Or export exemption, credit and refund registration form (production type) (Taxation Bureau)

Receive a general VAT invoice (five copies)

3. Cross-border e-commerce export tax refund operation process

Enterprises submit declaration data and transmit electronic information to the customs through the "International Trade 'Single Window' Standard Edition" or the "Internet + Customs" cross-border e-commerce customs clearance service system and cargo declaration system.

Electronic information messages related to cross-border e-commerce B2B exports will follow the existing B2C access channel model of the cross-border e-commerce customs clearance service system, and newly support the import of B2B export customs declaration messages; the cargo declaration system supports the entry and import of B2B export customs declaration forms according to the existing mode.

Cross-border e-commerce B2B export goods companies with a single ticket amount exceeding RMB 5,000/certificate/inspection/tax-related should go through customs clearance procedures through the "H2018 Customs Clearance Management System".

For cross-border e-commerce B2B export goods with a single invoice amount of less than RMB 5,000 (inclusive) and which do not involve certificates, inspections or taxes, enterprises can go through customs clearance procedures through the "H2018 Customs Clearance Management System" or the "Unified Cross-Border E-commerce Export System".

4. Export customs declaration model applicable to cross-border e-commerce

There are six customs declaration supervision modes applicable to cross-border e-commerce enterprises, namely: 0110, 1210, 9610, 1039, 9710, and 9810.

5. Cross-border e-commerce export tax rebates and traditional foreign trade

Let’s first understand the customs declaration methods. For example: the customs supervision code for general trade mode is called 0110, cross-border e-commerce bonded mode 1210, cross-border e-commerce B2B mode 9710, cross-border e-commerce retail mode 9610, cross-border e-commerce overseas warehouse mode 9810, and market procurement mode 1039. So, what are the meanings of different codes?

General trade pattern 0110

Traditional trade code 0110, also called general trade direct export. The characteristics of 0110 are B2B online/offline transactions. Online transactions may be exchanges of emails. Offline transactions, for example, recognize foreign businessmen through some exhibitions in Shenzhen and Guangzhou, and then cross-border enterprises complete a B2B transaction with overseas enterprises. This situation is currently the most common export tax rebate model.

The operating conditions of this model, for example, if I sign a contract with a foreign businessman, what is the corresponding process for sending goods to these foreign businessmen?

First, customs declaration must be made through customs; second, the goods are sent to overseas customers through international logistics; finally, overseas companies deliver products to end consumers. This is a sales model of 0110. This is also the most commonly used transaction method for cross-border e-commerce and traditional trade sellers, also called customs declaration.

Most sellers use the 0110 customs declaration method, because the 0110 customs declaration method is very simple, and there are no design restrictions on the corresponding products and customs declaration ports for the products.

Cross-border e-commerce bonded model 1210

In 2014, the General Administration of Customs issued Announcement No. 57, adding the code "1210" to the customs supervision method. This supervision method is applicable to domestic individuals or e-commerce enterprises that implement cross-border transactions on e-commerce platforms approved by the customs and enter and exit e-commerce retail goods entering and exiting through special customs supervision areas or bonded supervision places.

"1210" means that domestic enterprises can apply for export tax rebates by storing the goods they produce in warehouses in special customs supervision areas or bonded supervision areas, and then ship the goods from the warehouse to overseas consumers according to the order.

Cross-border e-commerce retail model 9610

The characteristic of the 9610 cross-border e-commerce retail export model is that all cross-border e-commerce sellers, for example, receive an order from a store and send the goods to the end consumer through small package direct mail.

In this case, the most common model at present may be to go directly to the freight forwarder, and then send the goods to the customer through overseas direct mail.

However, there are currently only two ports where 9610 can declare customs in Shenzhen, one is Shenzhen Qianhai Port and the other is Shenzhen Airport Port. If it is Shekou Port or other ports, 9610 has no way to declare customs here. It should be noted here that 0110 and 9610 can be applied for by the same company at the same time.

Market procurement model 1039

1039 was issued by the General Administration of Customs on July 18, 2014. It refers to a trading method that specifically targets multi-variety, small-volume, and multi-batch transactions in the market. It is purchased by qualified operators in a recognized market agglomeration area, the value of a single customs declaration does not exceed 150,000 US dollars, and the customs clearance procedures for export commodities are handled at designated ports.

It is mainly suitable for small workshops that do not have a ticket, and a single ticket does not exceed US$150,000. The transaction method is to go through customs clearance procedures at designated ports.

First of all, the 1039 requirement is that the business entity must be in the market, such as a certain wholesale market, the Leather City in Huadu, Guangzhou, and China South City in Shenzhen. Only in these areas can 1039 be done. After registering 1039 to enjoy this policy, you also need to register an individual industrial and commercial household to pay corporate income tax according to the approved collection method.

Cross-border e-commerce B2B model 9710

"9710" is referred to as "cross-border e-commerce B2B direct export". After domestic enterprises reach transactions with overseas enterprises through cross-border e-commerce platforms, they directly export goods to overseas enterprises through cross-border logistics.

The "9610" and "9710" models both refer to domestic companies shipping directly to overseas buyers. The difference is that "9610" is a B2C model from business to individuals, while "9710" is a B2B model from business to business, so generally the volume and value of "9710" is higher.

Cross-border e-commerce overseas warehouse model 9810

The characteristic of 9810 overseas warehouse is that it must adopt the overseas warehouse model, otherwise it will not be possible. To do 9810, you need to provide the warehousing fees of the overseas warehouse, and collect foreign exchange after the corresponding goods arrive at the overseas warehouse, so that you can complete the export tax rebate operation. Therefore, there are currently some difficulties in applying for 9810 and 9610. If these difficulties can be solved, export tax rebates can be obtained. Moreover, the customs declaration amount of 9810 is estimated, because the customs declaration amount is actually stored in overseas warehouses based on large quantities of products, so the amount of foreign exchange collection does not match up. In this case, using 9810 actually requires very strict requirements for our company's product pricing and customs declaration value. This is currently a difficulty in using 9810.