How much do you know about the "return" of export goods? Huacheng Import and Export Data O-General-Hmeonline: Leading B2B Source & Platform Since 2005

According to the observation report of Huacheng's import and export data, there are two entry modes for the return of general export goods

1. Duty free return for import

According to Article 57 of the Measures of the Customs of the People's Republic of China for the Administration of Taxation on Import and Export Goods (Decree No. 124 of the General Administration of Customs), where export goods are returned intact and transported into China within one year from the date of export clearance due to quality or specification reasons, taxpayers shall submit relevant documents and supporting documents in accordance with regulations when handling import declaration procedures. After being confirmed by the customs, the original export goods re transported into the country shall not be subject to import duties or taxes levied by the customs on behalf of the import link.

2. Tax refund for import

Except for tax exemption, taxes shall be levied according to regulations, and import duties and VAT shall be collected.

How to issue a return certificate?

1. The return certificate, including the Certificate of Tax Paid for the Return of Exported Goods and the Certificate of No Tax Refund for the Return of Exported Goods, is collectively referred to as the Certificate of Tax Paid (No Tax Refund) for the Return of Exported Goods.

2. The certificate of return shall be issued by the export enterprise upon application to the competent tax authority; If the goods entrusted for export are returned, the entrusting party shall apply for the issuance of the certificate that the tax has been paid (not refunded) for the returned goods and hand it over to the entrusting party.

3. If the export enterprise has not declared the tax refund for the original export goods when the goods are returned, it can apply for the issuance of the Certificate of Tax Refund for Export Goods Returned;

4. If the export enterprise has already declared tax refund when returning the goods, it needs to apply for the issuance of the Certificate of Tax Paid for Returned Goods. If the foreign trade enterprise has already refunded the tax, it needs to return the tax refunded to the tax bureau first, and then issue the certificate that the tax has been paid for the returned shipment; The production enterprise does not need to make up the tax. In the tax refund system, it uses a negative declaration to offset the original tax exemption, offset and refund declaration data. In essence, it is to offset the subsequent tax refund, which is equivalent to simplifying the procedures, and issuing the Certificate of Tax Paid on Returned Exported Goods.

Note: In the declaration software, the Certificate of Tax Refund on Exported Goods Returned and the Certificate of Tax Paid on Exported Goods Returned are entered in one interface, which is collectively referred to as the Certificate of Tax Paid on Exported Goods Returned (without Tax Refund), according to the observation report of Huacheng import and export data.

Several methods of return

1. Repair or replace the returned goods and then send them to the customer

(1) The enterprise can handle the entry of "inbound and outbound repair goods", and it is not necessary to handle the return certificate for re shipment out of the country. This is an alternative and simple way.

(2) The enterprise can also handle the return certificate, and then repair or replace the goods and send them to the customer

2. No replacement, no repair, no delivery to the customer after return, or even if new goods are delivered again, it has nothing to do with the original return business

(1) The enterprise needs to issue a return certificate. If the original export goods have not been declared for tax refund at the time of return, the Certificate of Export Goods Returned without Tax Refund can be issued directly; If the tax refund has been declared at the time of return, the Certificate of Tax Paid for the Return of Exported Goods shall be issued. If the foreign trade enterprise has already refunded the tax, the tax refund shall be returned to the tax bureau first, and then the certificate of tax paid for the return shall be issued; The production enterprise does not need to make up the tax. It can offset the original tax exemption, offset and refund declaration data with a negative declaration in the tax refund system.

(2) For goods returned to China and transported into China, if they are returned intact within one year from the date of export release due to quality or specification reasons, import duties and taxes levied by the customs on behalf of the import link can be exempted. If the goods are returned for more than one year or for other reasons, import tax shall be levied.

Financial and tax treatment of export return

1. The export enterprise has not declared the tax refund, and has returned the customs

(1) Repair or replace the returned goods and then send them to the customer

It is suggested that only the maintenance or replacement costs should be accounted for, and no other accounting treatment and tax declaration system should be adjusted. That is, neither offset the revenue nor operate the tax refund system. Only the repair and replacement expenses are recognized, and the exchanged goods are processed as borrowing the inventory goods (returned goods) and crediting the inventory goods (exchanged goods).

(2) No replacement, no maintenance, and no delivery to the customer after return

According to the Huacheng Import and Export Data Observation Report, first offset the current export revenue in the accounting of the month following the customs clearance and return, and adjust the cost of the goods that have been carried forward.

Secondly, if it is a cross year, if the export enterprise adopts the accounting standards or enterprise accounting system, it shall adjust the profit and loss in the accounting and financial statements through the "profit and loss adjustment of previous years"; Export enterprises adopt the accounting standards for small enterprises. Whether it is cross year or not, the current data will be offset at the time of return.

As for the tax declaration system, because the tax refund has not been formally declared, the corresponding offset operation is not required in the current enterprise export tax refund declaration system. For export revenue that has been subject to accounting treatment, only the relevant account tables are adjusted.

2. The export enterprise has declared tax refund and has returned the customs

(1) No replacement, no maintenance, and no delivery to the customer after return

First, the foreign trade enterprise shall offset the book income and make up the tax. The production enterprise shall offset the original tax exemption, offset and refund declaration data with a negative declaration within the VAT declaration period of the next month in which the situation occurs, and adjust the cost of the goods that have been carried forward for customs clearance and return.

With regard to the tax declaration system, since the income data has been declared, both foreign trade and production enterprises should reflect the offset export tax exempt income in Table 1.

With regard to the tax refund declaration system, foreign trade enterprises do not need to operate, but production enterprises should operate the "export details offset business", and use negative declaration to offset the tax refund declaration data. If there is a shortage of tax exemption, offset and rebate in the current period, the difference tax should be paid for the insufficient offset part, according to the observation report of Huacheng import and export data.

(2) Repair or replace the returned goods and then send them to the customer

Different from the export enterprise that has not declared tax refund, because in this case, the export enterprise has declared tax refund, and the foreign trade enterprise that has already declared tax refund needs to make up the tax, and the production enterprise uses a negative declaration to offset the subsequent tax exemption, offset and refund declaration data, so even if the returned goods are repaired or replaced and then sent to the customer, unless the enterprise handles the entry with the "inbound and outbound repair goods", it should also handle the repair or replacement cost accounting according to the above process, However, new shipments can be applied for tax refund with new export tax refund business. According to the observation report of Huacheng's import and export data.