Supplementary Circular of the Ministry of Finance and the State Administration of Taxation on Several Issues concerning Duties on Exported Goods
Supplementary Circular of the Ministry of Finance and the State Administration of Taxation on Several Issues concerning Duties on Exported Goods
Supplementary Circular of the Ministry of Finance and the State Administration of Taxation on Several Issues concerning Duties on Exported Goods
Cai Shui Zi [1997] No.14
February 21, 1997
The finance departments (bureaus) and state taxation bureaus of all provinces, autonomous regions, municipalities directly under the Central Government and cities specifically designated in the state plan,
With a view to strengthening the administration of taxes on exported goods, since November 1995, the Ministry of Finance and the State Administration of Taxation have issued the Circular on the Publication and Distribution of the Provisions on Certain Exported Goods Tax Refund or Exemption Issues (CaiShuiZi No.92 [1995]), the Circular on Resuming the Use of Special Value Added Tax Payment Certificates for the Administration of Exported Goods (CaiShuiZi No.8 [1996]) and other documents in accordance with the spirit of relevant State Council documents. In light of the status of implementation in the various regions and the issues reported, and in order to further improve and standardize the administrative measures for the taxation of exported goods, we hereby issue the following Supplementary Circular:
I. In accordance with the spirit of the Circular of the State Council on the Lowering of Export Tax Refund Rates (GuoFa No.29 [1995]), for exported goods declared for departure on or subsequent to January 1, 1996, other than for large-scale complete sets of equipment and large-scale mechanical and electrical products for which the State Council has approved a tax refund rate of 14%, all tax refunds shall be calculated at the following rates:
1. For agricultural products and coal, the tax refund rate shall be 3%;
2. For industrial products processed from agricultural product raw materials and other goods on which value added tax is levied at the rate of 13 percent,the tax refund rate shall be 6%; the applicable scope of industrial products processed from agricultural product raw materials shall be identical to that specified in the document CaiShuiZi No.92 [1995];
3. For other goods on which value added tax is levied at the rate of 17%,the tax refund rate shall be 9 %;
4 .For goods specified in paragraph (I) of this Article that are purchased from small taxpayers, the tax refund rate shall be 3%, and for purchases of goods specified in paragraphs (II) and (III) of this Article, the tax refund rate shall be 6%; and
5.Export cigarettes still at the manufacturing stage shall be exempt from value added tax and consumption tax. The value added tax input tax amount for export cigarettes shall not be used to offset the amount of value added tax payable on goods for domestic use and shall continue to be dealt with as an expense.
II. Any export enterprise (not including any foreign-funded enterprise approved to be established prior to December 31, 1993, the same hereinafter) that engages in business activities involving the processing of imported materials shall, in accordance with the provisions of Article 7 of the Joint Circular of the General Administration of Customs and the State Administration of Taxation on Strengthening Coordination and Cooperation to Strictly Implement the Administration of Customs Declaration Forms for Export Refunds and Strengthen the Measures against Counterfeit Certificates, first obtain documents approved by the competent commerce and trade departments and submit them to the taxation authority responsible for handling its tax refund for examination and sealing. The relevant taxation authority shall record the details item by item and keep copies for future reference. The relevant customs authority shall handle registration book matters for imports of materials and parts on the basis of the approval documents sealed by the taxation authority responsible for the relevant enterprises tax refund; after the processed goods are exported, the tax refund shall be calculated in accordance with the following provisions. For goods that are not examined and sealed by the relevant taxation authority but are later exported as goods that have been "processed from imported materials", the tax refund for all such goods that are exported by manufacturing enterprises shall be calculated in accordance with the formulae specified in Articles 3 and 5 of Document No.92 [1995], and value added tax on materials and parts sold shall be calculated and collected on the basis of the value added tax rate specified for all such goods that are exported by foreign trade enterprises when their bonded imports of raw materials, components and parts are sold to other enterprises for processing.
......