Laws of the People's Republic of China

Circular of the State Administration of Taxation and the State Administration of Foreign Exchange on the Related Matters on the Export Tax Rebate for the Export Goods under Forward Foreign Exchange Collection

Guo Shui Fa [2006] No. 168

The state taxation bureaus of all provinces, autonomous regions, municipalities directly under the Central Government and cities specifically designed in the state plan; the branches and foreign exchange management departments of the State Administration of Foreign Exchange in all provinces, autonomous regions, and municipalities directly under the Central Government, as well as the branches in Shenzhen, Dalian, Qingdao, Xiamen and Ningbo:

For the purpose of regulating the tax rebate(exemption) administration in the forward foreign exchange collection for the export goods of export enterprises, the State Administration of Taxation and the State Administration of Foreign Exchange have decided, upon research, to carry out the archival filing certification administration to the declaration of export tax rebate (exemption) for the forward foreign exchange collection for the export goods of export enterprises. The related matters are hereby informed as follows:

1.

If forward foreign exchange collection has been acted for the export goods declared by an export enterprise and the anticipated date for foreign exchange collection that is put on the archives of the foreign exchange administrative department (hereinafter referred to as the foreign exchange bureau) for forward foreign exchange collection has not gone by (hereinafter referred to as forward foreign exchange collection not overdue), it may provide a Certificate on Archival Filing of Forward Foreign Exchange Collection (see Appendix for the format, hereinafter referred to as Forward Certificate) as issued by the local foreign exchange bureau, and does not need to provide the special export tax rebate page of the verification and write-off form for foreign exchange collection in export (hereinafter referred to as the special tax rebate page of the verification and write-off form) when the export enterprise declares tax rebate(exemption) for the export goods. The taxation authority shall, after acceptance, examine and approve the tax rebate (exemption) for export goods in accordance with the current provisions on export tax rebate.The "forward foreign exchange collection" means the foreign exchange collection in export in which the anticipated date for foreign exchange collection is 180 days (including 180 days) or more later than the date of customs declaration in accordance with the current provisions on foreign exchange control.

2.

With regard to the export goods for which forward foreign exchange collection not overdue has been conducted according to Article1 of this Circular, the export enterprise shall handle the formalities for archival filing of forward foreign exchange collection at the local foreign exchange bureau in accordance with Article 19 of the Measures for the Administration of Verification and Write-off of Export Foreign Exchange Collection (Hui Fa [2003] No. 91) and Article 37 of the Detailed Rules for the Implementation of the Measures for the Administration of Verification and Write-off of Export Foreign Exchange Collection (Hui Fa [2003] No. 107).The foreign exchange bureau may issue a Forward Certificate bearing a "Special Supervisory Seal for Verification and Write-off of Export Foreign Exchange Collection" upon the strength of the application filed by the export enterprise.

3.

After an export enterprise exports goods and handles the procedures for archival filing of forward foreign exchange collection, it shall collect (settle) foreign exchanges at the anticipated date for foreign exchange collection in accordance with the Measures for the Administration of Verification and Write-off of Export Foreign Exchange Collection and other related provisions, and handle the procedures for verification and write-off of export foreign exchange collection within 30 days as of the end of the anticipated date for foreign exchange collection.

4.

The ledger management system for providing Forward Certificates shall be established by taxation authority to export enterprises. If an export enterprise fails to provide a special tax rebate page of the verification and write-off form to the taxation authority within 30 days after the anticipated date for foreign exchange collection (where an export enterprise does not need to provide the special tax rebate page of the verification and write-off form for the pilot declaration of export tax rebate, the "verification and write-off date" on the electronic data on verification and write-off of foreign exchange collection as transmitted by the foreign exchange bureau and received by the taxation authority shall prevail), the taxation authority may not deal with tax rebate (exemption) for the related export goods any more, and if the tax has been rebated (exempted), the taxation authority shall recover the rebated (exempted) taxes in accordance with the related provisions, and it shall be considered as making up the taxes for domestic sales.

5.

In accordance with the related provisions on transmitting the verification and write-off data on foreign exchange collection in export, the foreign exchange bureau shall regularly transmit the electronic data that has gone beyond the time period but has not been written off to the local taxation authority.

6.

This Circular shall enter into force as of December 1, 2006 (the export date indicated on the "For Export Tax Rebate" of the declaration for export goods shall prevail). Item (3) of Paragraph 4 of Article 14 of the Circular of the State Administration of Taxation on Printing and Distributing the Measures for the Administration of Tax Rebate (Exemption) for Export Goods (Guo Shui Fa [1994] No.031) shall be concurrently abolished.

Appendix: Certificate on Archival Filing of Forward Foreign Exchange Collection

State Administration of Taxation

State Administration of Foreign Exchange

November 13, 2006

Appendix:

Serial number:                          

Certificate on Archival Filing of Forward Foreign Exchange Collection

　　Name of the enterprise:               

　　Code of the organization:                

Unit: USD