Trusted Market and Commodities-Trade Intelligence
On 8 October 2018, the Executive Meeting of the State Council was held. During this, the decision to complete the export rebate policy and accelerate the drawback was made. From 1 November 2018 specifically,
² The respective export rebate rate of 15% and 13% on certain commodities will be both increased to 16%
² The figure of 9% will be raised to 10% and even to 13% partially
² The rate of 5% will be improved to 6% and even to 10% partially
In order to simplify the tax system, 1) the export rebate rating which is now comprised of 7 grades, will consist of only 5 levels; 2) the exporters who are good in credit and tax payment, will enjoy the simplified formalities and will spend shorter time on the refund of duty; 3) the paperless declaration of export tax rebate will be promoted nationwide, so as to improve the efficiency of examination and approval.
“The implementation of the export rebate policy is in line with the World Trade Organization rules,” stated the meeting, “The completion of the export rebate policy and the acceleration of the drawback will help deepen the supply side structural reform and reduce the cost for real economy, and at the same time, will help cope with the complicated international situation and maintain the steady trade growth.”
A market analyst said the following, “This policy is announced just as the Sino-US trade war is escalating and the export business is clouding. The significant increases in export rebate rate and the optimization of export policy and service will help the enterprises to ease the pressure and maintain the business growth. This year, 2018, has already seen many measures taken by China’s Ministry of Finance and Ministry of Commerce to stabilize the foreign trade business.”