Tag Archives: export rebate

Export Rebate: The Secret to the Cheaper Made-in-China Product Selling Outside China

It’s widely known that made-in-China products are selling at a cheaper price outside China, not only the OEM articles like Nike, but the China based Lenovo also follow that pricing. There are many reasons contributing to the different price, including pricing strategy, logistic cost, office rent, taxation and even the change or exchange rate. IN this essay, we prefer to discuss the cause of a cheaper price of the same article overseas from the aspect of tax rebate.

I. VAT rebated in export

To take the Nike shoes as the instance, when Nike plants export the shoes, China taxation authority will rebate the paid VAT occurred during the process of production and circulation before the export, and that’s called the “export tax rebate”. So, let’s first take a look at how many taxes shall be paid within Nike shoes’ manufacture and circulation before the export.

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The Latest Laws and Regulations of July, I

I.  From 1st of August, 2012, Export Enterprises won’t be Required to Go through the Formalities of Collection, Verification, Writing-off of Export Proceeds in Foreign Exchange

The State Administration of Foreign Exchange, the General Administration of Customs and the State Administration of Taxation jointly issued the Announcement on Reform concerning to Foreign Exchange Administration System of Goods Trade, and the reform will be implemented nationally on 1st of August, 2012. Reportedly, from 1st of December, 2012, the reform has been piloted in 7 provinces such as Jiangsu, Shandong, etc.. The reform covers the administration method including the cancellation of paper of collection, verification and writing-off of export proceeds, no need to go through the formalities of collection, verification and writing-off of export proceeds; implementation of dynamic sort management referring to classifying the enterprises into 3 sorts according to the compliance and the consistency of export and import of goods; and adjustment to declaration process for export, etc.. Meanwhile, the State Administration of Foreign Exchange has delivered new laws and regulations for administration of foreign exchange of goods trade to the local departments of foreign exchange and banks authorized to deal with foreign exchanges, accordingly the old documents are abolished.

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