I. Goods granted with export rebates

The goods on which the value-added tax and consumption tax have been levied or shall be levied, except for goods that shall not be granted with tax refund (exemption) according to the state regulations, are within the scope of goods with export tax refund (exemption) after the goods have departs from the country upon customs clearance and have been financially sold. 

The departure hereinmeans the departure of goods from the territory under the jurisdiction of the customs, and the transport of goods to the export processing zone, bonded logistics park and otherspecial closed areasunder the supervision of customs should also be deemed as departure from the country.

The goods that have not been exported, thegoods smuggled and exported and the goods withoutexport certificates shall not be granted with tax refund.

II. Special goods granted with export rebates

The special goods that are granted with export rebates generally classified into two types. Firstis the goods that are not directly exported but are ultimately consumed abroad, such as the goods that are used for repair and replacementbusiness.The second isthe goods that are consumed domestically but deemed as exported under the principle of fairness or reciprocity.

For example, the domestic mechanical and electrical products that win the international bidding are deemed as exported products in order to maintain fair competitionbecause the overseas bid winning productsare exempted from import tax when imported.

Special goods granted with export rebates mainly include:

1. Goods that are transported overseas by foreign contractingengineering companies for use in foreign contracted projects;

2. Goods sold by felly supply companies and ocean shipping supply companies to felly and ocean shipping national ships with foreign exchangereceived;

3. Goods purchased by enterprisesdomestically and transported abroad as foreign investments;

4. Domestically produced goods operated by duty-free shops at the exit ports;

5. Domestically equipment goods purchased by foreign-invested enterprises (this policy is gradually phased out with the implementation of the value-added tax for consumption in China);

6.Products made in China that are purchase by foreign embassies (consulates) in China and their diplomatic representatives (consular officials);

7. Water, electricity, gas and steam consumed by the production enterprises in the export processing zone for the production of exported goods;

8. Goods used by enterprises that undertake the repair and replacement business for external repair and replacement;

9. Goods exported withChina’s foreign aid concessional loans to ZFand joint venture and cooperation project funds;

10. Mechanical and electrical products that use international financial organizations or foreign ZF loans, adopt international bidding method and are sold by domestic enterprises that winning the bid;

11. Goods sold by enterprises outside the zone to enterprises in the export processing zone and transported into the export processing zone for use by enterprises in the zone;

12. Goods exported by means of overseas processing and assembly business with materials provided;

13. Offshore engineering structure products sold by domestic production enterprises to domestic offshore oil and gas exploration enterprises;

14. Air food produced and sold by domestic aviation supply companies to foreign airlines;

15. Goods exported under compensation trade and barter trade;

16. Domestic goods entering the export supervision warehouse;

17. Goods entering the bonded logistics centers (Type B);

18. Export goods subject to warehousing in bonded areas;

19. Goods exported by enterprises within the bonded areas (excluding bonded logistics parks) in the areas;

20. Goods exported under border trade at small amount;

21. Self-use second-hand equipment exported by export enterprises.

III. Export goods with tax exemption but without tax refund

1. Goods re-exported under processing ofmaterials supplied by clients;

2. Contraceptive medicines and utensils as well as antique and old books;

3. Cigarettes within national export cigarette plansexported by enterprises with exported cigarette trading rights;

4. Military products and goods allocated by exported military supplies sector of military system enterprises;

5. Computer software;

6. Gold-containing products;

7. Goods taxed by simple method;

8. Other tax-exempted goods under the state regulations.

IV. Exported goods not granted with tax refund or exemption

1. Crude oil and natural gas exploited from Chinese-foreign cooperative oil (gas) fields;

2. Diesel;

3. Goods prohibited by the state from exporting, including natural bezoar, musk, copper and copper-based alloy platinum, etc. (except for re-export under processing ofmaterials supplied by clients);

4. Foreign aid export goods (except for goods exported under foreign aid modewiththe use of China’s foreign aid concessional loans to ZFand foreign aid joint venture and cooperation project funds);

5. Cigarettes within export cigarette plansof export countryexported by enterprises with exported cigarette trading rights;

6. Goods transported from the non-bonded areas to bonded areas;

7. Non-self-produced goods that are self-operated or exported on a commissioning basis by non-listed production enterprises;

8. Other exported goods that are taxed while being deemed as sold domesticallyunder the state regulations.