The Ministry of Finance, the General Administration of Customs and the State Taxation Administration released on November 3, 2020 the Announcement about Tax Policies for Returned Export Goods Due to the COVID-19, effective from November 2, 2020.
According to the announcement, if a company declares export between January 1, 2020 and December 31, 2021, and the exported goods are returned within one year due to the COVID-19 pandemic, the goods will not be levied with import tariff, import value-added tax or consumption tax; export tariff will be returned if the tariff has already been levied. If taxpayers have already received tax rebates for their exported goods, and the goods are later returned, they shall repay the rebated value-added tax and consumption tax according to existing tax rules.