Tax reduction and exemption policies: The "invisible benefits" for foreign trade enterprises.

As a veteran with 20 years of experience in foreign trade, I am often asked by clients a question: "Is it really necessary to pay the full tax amount during the import process?" In fact, Article 57 of the Customs Law has long reserved policy flexibility for specific circumstances. Just as we know how to use coupons when shopping in malls, foreign trade enterprises should also make good use of the tax reduction and exemption policies granted by the state.

According to customs statistics, in 2022, customs authorities nationwide processed over 120,000 cases of duty reduction and exemption approvals, saving enterprises tens of billions of yuan in taxes. However, it is regrettable that a significant proportion of companies still miss out on these benefits due to a lack of understanding of the policies or the complexity of the procedures. Today, let me break down this "clearance guidebook" for you based on practical experience.

19. Under what circumstances can tax reduction and exemption be applied for?

According to current regulations, it primarily applies to three types of "specific" circumstances:

• 28. Specific regions29. Such as free trade pilot zones, comprehensive bonded zones and other special supervision areas.
• 30. Specific enterprises31. Including scientific research institutions, medical institutions, schools and other public institutions.
• 32. Specific purposes33. Such as special purposes such as technological innovation, major technical equipment, and charitable donations.

34. I once assisted a biopharmaceutical enterprise in applying for tax reduction and exemption for R&D equipment, and a single batch of goods saved 23% of tariff costs. The key is to thoroughly understand the policies. For example, projects listed in the Encouraged Industry Catalog are often accompanied by tax incentives.

20. The art of preparing application materials.

35. Material preparation is the key to success or failure. Based on my experience, common problems are concentrated in:

• 36. Subject qualification certificate37. The new version of the public institution legal person certificate must be stamped with the annual inspection seal.
• Product materials38. Technical parameter descriptions must strictly correspond to HS codes.
• 39. Policy basis40. Must be specific to the document number and clause.

Special Reminder: Currently, 90% of applications can be processed paperlessly via "Internet + Customs." However, please note that electronic documents must comply withPDF version 1.4 or above, with single file size not exceeding 4Mtechnical requirements. One client previously had their application rejected due to excessively high scan resolution, causing a two-week delay.

21. Tips for controlling time nodes.

The 10-working-day processing time limit promised by customs requires attention to three "golden time points" in actual operations:

• Lead timeInitiate applications 20 days before cargo arrival at port
• Rectification periodIf documents are incomplete, the rectification period will reset the processing timeline
• 37. Special circumstancesFor policy interpretation or commodity identification cases, the maximum extension may reach 25 working days

Last year we handled an urgent case where pre-audit service helped confirm policy applicability in advance, ultimately obtaining the Duty-Free Confirmation Notice on the day of cargo arrival, avoiding port demurrage fees.

22. Analysis of the entire electronic processing process.

The "digital window" of modern customs is indeed convenient, but pay attention to the following operational details:

• When filling out the form on the "Single Window" platform, the "Duty Reduction/Exemption Type" must correspond to the number on the "Encouraged Projects Confirmation Letter."
• Electronic signatures must use certified digital certificates
• Preserve system-generated receipt numbers carefully as they are the only proof for follow-up queries

Here's a practical tip: You can check the processing status in real time through the "My Pending Tasks" feature on the "Internet + Customs" platform. If the status remains "Under Review" for more than 7 working days, it is recommended to immediately contact the 12360 hotline for consultation.

Warning for Common "Pitfalls"

Based on Customs audit cases, these situations most commonly lead to duty reduction/exemption disqualification:

• Unauthorized leasing of duty-free equipment
• Using duty-free goods for non-designated purposes
• Failing to complete equipment transfer procedures during corporate restructuring

A client once used scientific research equipment for production purposes, not only facing tax recovery but also being placed on the customs credit "gray list." Remember: duty-free goods are like "special-purpose loans" and must be used strictly for their designated purposes.

24. Professional advice: building a tax reduction and exemption management system.

For enterprises frequently applying for duty reductions/exemptions, we recommend establishing three mechanisms:

• Policy tracking mechanismSubscribe to Customs General Administration regulation bulletins
• Document pre-review mechanismEstablish internal duty reduction/exemption audit positions
• Dynamic monitoring mechanismMaintain dedicated ledgers for duty-free equipment

Our duty management system designed for a multinational corporation achieved full lifecycle management from policy interpretation to equipment disposal, saving over 80 million yuan in taxes within three years.

Finally, I'd like to leave you with this thought: tax reductions and exemptions are not about "exploiting loopholes," but rather the legitimate benefits granted by the state. As long as you thoroughly understand the rules and operate in compliance, every enterprise can find its own "discount code" within customs policies.