B.String Business Consulting Ltd.

After an enterprise’s commodities are exported and related financial transactions completed, export enterprises are expected to apply to the competent tax authority for tax rebate and exemption against related tax vouchers on a regular basis, in accordance with relevant regulations. Export tax rebate and exemption declarations also provide data, which the competent tax authority uses to verify, approve and handle tax rebate/exemption. If application is not submitted in time, the goods exported will be taxed as goods for domestic sales.

The State Administration of Taxation recently issued a circular on the administration of export tax rebate and exemption. This stipulates that as of 1 June 2005, new measures will apply to the application for and approval of export tax rebate and exemption for goods exported after 1 January 2004. Notably, goods exported by companies themselves or by agents will be taxed as goods for domestic sales if the application for tax rebate and exemption is not filed within 90 days of the customs declaration.