Can all export enterprises apply for an export tax refund or exemption?
The tax authority shall make an assessment on the taxable income of the FIE and decide the amount to collect, according to the Provisional Measures for Assessment and Collection of Enterprise Income Tax (the "Assessment and Collection Measures").
The State Administration of Tax and the Ministry of Commerce jointly issued a Circular (Guo Shui Fa [2006] 24) on 13 February 2006, specifying that an export enterprise will not be eligible to apply for an export tax refund/exemption if any of the following situations exists:
1. The export enterprise provides parties, other than its appointed transportation agent, customs declaration agent or transportation agent of the importer, with blank export tax refund/exemption documents (e.g. customs declaration forms or export remittance receipt confirmation statements);
2. The export enterprise proclaims itself to be an exporter of its own goods or goods of its invested companies in the case of a China Investment Enterprise, where in substance the export is for goods of another enterprise and is performed by that other enterprise;
3. The export enterprise proclaims itself to be an exporter of its own goods and signs both an export agency agreement and a purchase agreement in respect of the same shipment;
4. The export enterprise amends the details on the bill of lading after customs clearance such that the details stated differ from those stated in the customs declaration form;
5. The export enterprise proclaims itself to be an exporter of its own goods but does not assume responsibility for the quality of the products or timely settlement of foreign exchange or tax refunds as a result of improper export declarations;
6. The export enterprise does not participate in export activities in substance, but accepts and undertakes other export business introduced by an intermediary, and exports goods on its own account; or
7. The export enterprise is involved in any acts that contravene the laws and regulations on export tax refunds.
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