Announcement of the State Administration of Taxation on Adjusting and Improving Matters concerning the Handling of Tax Refund (Exemption) for Exported Goods by Foreign Trade Integrated Services Enterprises

Announcement of the State Administration of Taxation on Adjusting and Improving Matters concerning the Handling of Tax Refund (Exemption) for Exported Goods by Foreign Trade Integrated Service Enterprises

Announcement of the State Administration of Taxation [2017] No.35

September 13, 2017

To promote a regulated and healthy development of foreign trade integrated services enterprises and to establish an export tax refund (exemption) administration model compatible with their development, pursuant to the guidelines set forth in the Circular of the Ministry of Commerce, the General Administration of Customs, the State Administration of Taxation, the General Administration of Quality Supervision, Inspection and Quarantine, and the State Administration of Foreign Exchange on the Promotion of the Healthy Development of Foreign Trade Integrated Services Enterprises (Shang Mao Han [2017] No.759), issues concerning the handling of export tax refund (exemption) by foreign trade integrated services enterprises on behalf of manufacturers are hereby announced as follows:

I. A foreign trade integrated services enterprise (hereinafter referred to as the "integrated services enterprise") engaged in handling export tax refund (exemption) matters on behalf of domestic manufacturers that meets all of the following conditions may handle export tax refund (exemption) matters for manufacturers (hereinafter referred to as the "tax refund agent service") in a centralized manner at the competent tax authority of the place where it is located:
1. it meets the definition of an "integrated services provider" as provided by the Ministry of Commerce and other authorities and has filed a record with the competent tax authority; and
2. it has relatively sound internal risk control rules for its tax refund agent service and has filed a record of such rules with the competent tax authority.

II. A manufacturer exporting goods that meets all of the following conditions may use the tax refund agent service of an integrated services enterprise:
1. the goods to be exported are self-manufactured or deemed as self-manufactured by the manufacturer;
2. the manufacturer is a value-added tax (VAT) general taxpayer and has filed a record for export tax refund (exemption) in accordance with regulations;
3. the manufacturer has an existing export contract with an overseas entity or individual;
4. the manufacturer has entered into a foreign trade integrated services contract (agreement) with the integrated services enterprise to agree upon the provision of integrated services including customs declaration and inspection submission, logistics service, tax refund agent service, and settlement service by the integrated services enterprise, with the relevant legal liabilities of the parties expressly stipulated; and
5. the manufacturer provides the information of its deposit bank and account number for receiving the tax refunds resulted from the tax refund agent service (hereinafter referred to as the "receiving account) to the competent tax authority.

III. A manufacturer shall file a record for its engagement of tax refund agent service with the authority. It shall complete and submit the Record-filing Form for Information on Tax Refund Agent Service (See Appendix I hereto, hereinafter referred to as the "Filing Form") to the competent tax authority of the place where it is located along with its receiving account information before it engages the tax refund agent service of an integrated services enterprise for the first time, and shall maintain the foreign trade integrated services contract (agreement) signed with the integrated services enterprise for future reference.
Where any information on the Filing Form submitted changes, the manufacturer shall complete and submit a new Filing Form within 30 days from the date when such change occurs.
Where a manufacturer intends to withdraw its record filed for engagement of tax refund agent service, it shall do so after the competent tax authority for the integrated services enterprise engaged has settled with the integrated services enterprise the full amount of tax refundable to the manufacturer pursuant to regulations.
Where a manufacturer intends to withdraw its registration for export tax refund (exemption), it shall first withdraw its record filed for engagement of tax refund agent service pursuant to relevant regulations.

IV.
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