On November 3, the Ministry of Finance, the General Administration of Customs and the General Administration of Taxation jointly issued a notice issuing tax provisions for the export of returned goods due to force majeure of the new coronary pneumonia epidemic.

For goods declared for export from January 1, 2020 to December 31, 2020, due to force majeure of the new coronary pneumonia epidemic, import duties and import link value-added tax and consumption tax will not be levied on goods that have been re-shipped into the country within one year from the date of export; if export duties have been levied at the time of export, export duties will be refunded.

At the same time, the announcement also clarified the relevant formalities and requirements in the implementation of tax regulations.

Ministry of Finance General Administration of Customs General Administration of Taxation Announcement No. 41 of 2020

With the approval of the State Council, the relevant tax provisions on the export of returned goods due to force majeure of the new coronary pneumonia epidemic are announced as follows:

1. from January 1, 2020 to December 31, 2020 to declare exports, due to the new crown pneumonia epidemic force majeure reasons, from the date of export within 1 year of the goods re-shipped into the country, do not levy import duties and import link value-added tax, consumption tax, export duties have been levied at the time of export, export duties will be refunded.

If the 2. has handled the export tax refund for the goods that meet the provisions of Article 1, it shall pay the refunded (exempted) value-added tax and consumption tax in accordance with the current provisions.

3. From the date of this announcement, when the returned goods that meet the provisions of Article 1 are declared for import, if the enterprise applies to the customs for non-taxation procedures, it shall obtain in advance the export goods issued by the competent tax authority. Certificate.

4. From January 1, 2020 to the date of this announcement, the import duties, import value-added tax and consumption tax levied on returned goods that meet the provisions of Article 1 shall be refunded upon application by the enterprise. Among them, those who have not declared the deduction of import value-added tax and consumption tax shall obtain the certificate of non-deduction of value-added tax and consumption tax for the return of export goods due to force majeure of the new crown pneumonia epidemic (see annex) issued by the competent tax authorities in advance, and apply to the customs for the refund of import duties, import value-added tax and consumption tax; those who have declared the deduction of import value-added tax and consumption tax shall only apply to the customs.The import consignee shall go through the tax refund formalities with the customs before June 30, 2021.

5. goods that comply with the provisions of Articles 1, 3 and 4, the import consignee shall submit a written explanation of the reasons for the return of the goods, proving that it is returned due to force majeure due to the new coronary pneumonia epidemic, and the Customs shall handle the above formalities according to the returned goods with its explanation.

6. This announcement shall be interpreted by the Ministry of Finance in conjunction with the General Administration of Customs and the State Administration of Taxation.

Annex: Due to the new crown pneumonia outbreak force majeure export goods returned to the value-added tax, consumption tax has not been deducted certificate.

Ministry of Finance General Administration of Customs General Administration of Taxation

2 November 2020