Date:06-09-2013

In order to accurately calculate and audit tax refund (exemption) for exported goods, to verify the authenticity of the export business, to prevent the violation of defrauding tax authorities of tax rebates of exported goods, in accordance with the relevant provisions under the Notification of the State Council on Reducing Export Rebates and Strengthening the Management of Export Rebates (Guo Fa Ming Dian [1995] No. 3 ), Announcement of the State Administration of Foreign Exchange, General Administration of Customs, andState Administration of Taxation on the Reform Of Management System Of Foreign Exchange Of Goods Trade (Notification of the State Administration of Foreign Exchange 2012 No. 1), we now announce the issues related to the provision of documents on foreign exchange collection by export enterprises declaring tax refund (exemption) of exported goods as follows:

I. For exported goods involved in declaration of tax refund (exemption), the export enterprise shall collect foreign exchanges prior to the deadline of tax refund (exemption) of (collect RMB in case of cross-border trade settled in RMB, similarly hereinfafter ) and provide export earnings information in accordance with the provisions provided in this announcement; export goods whose tax refund (exemption) is not declared prior to the foresaid deadline, except the export goods listed in Article V of this announcement for which it is impossible to collect export earnings, or whose export earnings are not collectable prior to the foresaid deadline, shall be governed by the VAT exemption policies.

II. In one of the following circumstances, export enterprises, when declaring tax refund (exemption), shall fill out the Export Earnings Declaration for Export Goods  (Annex 1) export goods for which export earnings have been collected, and provide vouchers of export proceeds such as water to the bank slips of the goods (in case of cross-border trade settlement in RMB, the receipt of RMB, the original and a copy with official seal of the enterprise, similarly hereinafter); for export goods whose export earnings are not collected yet, the production enterprises should fill in the column of Missing Documents Flag (column 20) with a “W”, in the Detailed Declaration of Tax Exemption, Credit and Rebate to count itself out in the calculation of tax exemption, credit and rebate for the moment until it collects the export earnings, fills in the Export Earnings Declaration for Export Goods; to the export goods listed in Article V, for which it is impossible to collect export earnings, or whose export earnings are not collectable prior to the foresaid deadline, the provisions of Article V in the announcement shall apply:

 (a) Enterprises classified as B and C by foreign exchange management authorities;

 (b)Enterprises listed as key monitoring objects by foreign exchange management authorities;

 (c)Cross-border trade enterprises listed under key RMB regulation by the People's Bank;

 (d)Enterprises classified as C and D by customs;

 (e)Enterprises assessed as D tax credit rating by tax authorities;

 (f)Enterprises given administrative punishment by tax authorities because of falsification of VAT invoices, or other value-added tax deduction certificates, evasion VAT tax, defraudation of the state of export rebates, etc.;

 (g)enterprises dealt with administrative sanctions by customs, foreign exchange administration, the People's Bank of Commerce and other authorities for violation of requirements of import and export management, export earnings collection and payment management;

 (h)enterprises providing false reason of impossible collection of export earnings to competent tax authorities;

 (i)Enterprises producing spoofed collection voucher of export earning to tax authorities.

The preceding paragraphs (a) to (e) shall be implementable (i.e., the time of declaration of tax refund (exemption), similarily in this paragraph) as from the notification from the competent tax authorities until the end of the circumstances; the preceding paragraph (f) to (i) shall be implementable for 24 months as from the date of notification from competent tax authorities; where an export enterprise in several circumstances above at the same time, the paragraphs shall be implementable until the end of the circumstances, whichever is the latest.

III. As from May 1, 2014, the export enterprises whose export earning collection rate in the previous year is below 70% (the ratio of the amount of export exchange collection in previous provided by SAFE and the People's Bank, plus the amount of export earnings not collectable as declared by the enterprise and verified by competent tax authorities, to the amount of export goods volume in previous year declared by enterprise for tax refund (exemption), to the tax refund (exemption) declared by the export business in May to next April, the provisions of Article II under this announcement shall apply.

IV. Documents of collection of export earnings of export goods may be exempted for tax refund (exemption) declared by enterprises other than those listed in Article II and III herein, except as in the circumstances provided in paragraph 2 of present article; to the export goods listed in Article V, for which it is impossible to collect export earnings, or whose export earnings are not collectable prior to the foresaid deadline, the provisions of Article V in the announcement shall apply.

Where the competent tax authorities,  in reviewing the export tax refund (exemption), find that the export business involving the export goods for which an export enterprise declares tax refund (exemption) in the preceding paragraph needs further verification of authenticity, the export enterprises, upon receipt of the notice from the competent tax authorities, shall fill in the Checklist of Export Business of Production Enterprise or Checklist of Export Business of Foreign Trade Enterprises, Export earnings Declaration for Export Goods or Declaration for Export Goods with Uncollectable Export earnings (Annex 2) and related documents.The competent tax authorities shall verify the Declaration and related documents submitted by enterprises in accordance with relevant provisions before sanctioning the tax refund (exemption) of export goods.

V. Where it is impossible to collect export earnings for export goods, or export earnings for export goods are not collectable prior to the foresaid deadline, because of the reasons listed in Annex 3 hereto, for example, they shall be accounted to set off export sales revenue in accordance with accounting system, after such setoff, export enterprises listed in Article II herein, when declaring tax refund(exemption), and export enterprise listed in Article IV herein, before the deadline of tax refund(exemption) declaration, shall submit the Declaration for Export Goods with Uncollectable Export earnings to the competent tax authorities, along with the relevant certificates corresponding to the reasons listed in Annex 3, and the competent tax authorities shall examine and verify the documents before the export earnings can be deemed collected.

VI. Where the final date of all of the contractual collectable export earnings is behind the deadline of export tax refund (exemption), export enterprises shall provide vouchers of collection of export earnings to competent tax authorities within the declaration period for VAT of the month next to the contractual final date for collection of export earnings, where such vouchers are unavailable, the VAT exemption policies shall apply to appropriate export goods.

VII. For export goods to which VAT exemption policies are applicable hereunder, export enterprises shall declare tax exemption to the competent tax authorities in accordance with regulations in the month next to the deadline of tax refund (exemption) declaration, or in the declaration period for VAT in the month next to determination of tax exemption, where tax refund (exemption) is declared in the previous period, export enterprises shall declare negative figures to set off the original declared figure of tax refund (exemption), and make adjustment accordingly in accordance with the relevant provisions of the existing accounting system, where the amount of tax exemption, credit and refund in the current period of export enterprises (amount of tax rebate in case of foreign trade enterprises, similarly hereinafter) is sufficient for the setoff, the enterprise shall cover the difference.Where the competent tax authorities discover that export enterprises fails to declare setoff in accordance with the above provision, the enterprises shall make remedial payment of tax exemption, credit and refund addition, enjoy tax exemption or pay VAT of export goods, and accept the punishment imposed on by competent tax authorities in accordance with Tax Collection and Administration Lawof the People’s Republic of China.

VIII. Where competent tax authorities discover that the documents on export earnings collection provided by export enterprises declaring tax refund (exemption) for export goods are in the following circumstances, the enterprises shall be accordingly punished in accordance with the Tax Collection and Administration Lawof the People’s Republic of China, the appropriate export goods to which VAT tax policies are applicable, where involved in tax evasion and fraud, shall be investigated by audit authorities:

 (a) the reasons for uncollectability or certificates are false;

(b) documents on collection of export earnings are spoofed.

IX. Where discovering the collection of export earnings of export goods by export enterprises suspicious of payment not made by importers, tax authorities may withhold export tax refund (exemption) for the collected export earnings of appropriate export goods for export refund (exemption); where tax refund (exemption) has been granted, the competent tax authorities may withhold other audited and approved refundable (exemptible ) tax of the enterprise at the equivalent amount of the involved tax, where there is no such other refundable tax or such refundable tax is insufficient for the refunded tax involved, the export enterprise may provide a guarantee for the difference.After the tax authorities rule out the appropriate doubtful points upon verification, the same may approve the tax refund (exemption) tax or discharge the guarantee.

X. The Provincial State Taxation Bureau shall establish evaluation indicators, early warning values, and make regular assessment of goods flow and capital flow of export enterprises and issue early warnings according to the data on export earning volume provided by the People's Bank and the SAFE, where the data on settlement of exchange for export goods for which export enterprise declare tax refund (exemption) is found abnormal,  verification shall be conducted, any violation shall be dealt with in accordance with appropriate provisions, tax evasion or fraud shall be investigated by audit authorities.

XI. The export goods herein do not include the goods deemed as export, barter trade export goods, and entrusted export goods listed in Subparagraph I.(II) (except Item 2) and (III) in the Circular of the Ministry of Finance, the State Administration of Taxation of the People’s Republic of China, on VAT and Consumption Tax Policies for Labor Services of Exported Goods (Cai Shui [2012] No. 39), and not include border trade export goods for the moment; the export enterprises herein do not include entrusted export enteprises.

XII. This announcement shall be implemented as from August 1, 2013.

The Announcement is hereby made.