Notice on Refund Policy of General Small Trade across Border Areas

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Apr. 8 – China’s State Council, Ministry of Commerce, General Administration of Customs, and State Administration of Foreign Exchange jointly issued a notice effective March 1 regarding the refund policy for general small trade which is conducted in RMB across border areas.

According to the notice, the existing refund policy in Yunnan is now extended to several other border provinces and autonomous regions including Inner Mongolia, Liaoning, Jilin, Heilongjiang, Guangxi, Tibet, and Xinjiang.

Export enterprises registered in Inner Mongolia, Liaoning, Jilin, Heilongjiang, Guangxi, Xinjiang, Tibet, or Yunnan and engaging in general small trade business with the border countries can enjoy the full export tax rebate policy.

The State Administration of Foreign Exchange shall issue the export verification receipt. Land designated ports are approved by the state border departments.

In addition to the export refund certificate, enterprises should also provide bank transfer receipts to the tax authorities and apply for monthly refund procedures. Bank transfer receipts should match up with export verification receipts issued by the State Administration of Foreign Exchange.

If enterprises are unable to provide the required certificates for the exported goods, tax authorities will not process the refund application.