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Can entrepot trade enjoy export tax rebates? Come and find out!

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Our company recently intends to carry out entrepot trade business. I heard that some export trades can enjoy the export tax rebate policy. I don't know if entrepot trade can enjoy export tax rebates. If it can, what conditions need to be met? If it cannot, what are the reasons? I hope those who are knowledgeable can help answer this question so that we can have a clearer understanding before carrying out the business and avoid taking detours.

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Professional consultant answers

James Liu
James LiuYears of service:10Customer Rating:5.0

Foreign trade tax refund consultantConsult

Entrepot trade usually cannot enjoy export tax rebates. Export tax rebates are measures taken by the state to enhance the competitiveness of domestic goods in the international market by refunding the value-added tax and consumption tax actually paid in the domestic production and circulation links for export goods. However, entrepot trade goods are not produced and processed in the country and have not paid the corresponding taxes in the country, so they do not meet the basic conditions for export tax rebates.

Entrepot trade is just that during the process of transporting goods from the producing country to the consuming country, they are transshipped in a third country, and the ownership of the goods changes during the transshipment process. For example, goods are produced in Country A, and a company in Country B buys them and resells them to Country C. The goods are directly transported from Country A to Country C, and the company in Country B is only responsible for the trade operations. In this case, the company in Country B cannot apply for export tax rebates. So generally speaking, entrepot trade cannot enjoy the export tax rebate policy.

Robert Chen
Robert ChenYears of service:6Customer Rating:5.0

Customer service consultantConsult

Entrepot trade cannot get tax rebates because export tax rebates mainly target products that are produced and manufactured in the country and exported. Entrepot trade goods are not produced in the country and do not involve tax payments in the domestic production process, so naturally they cannot get tax rebates.

Joseph Zhou
Joseph ZhouYears of service:10Customer Rating:5.0

Senior foreign trade managerConsult

It cannot be enjoyed. There are strict regulations on export tax rebates, emphasizing that goods should be processed and value-added in the country and relevant taxes should be paid. Entrepot trade does not meet these requirements, so it cannot obtain tax rebates.

David Li
David LiYears of service:6Customer Rating:5.0

Senior customs declaration consultantConsult

Entrepot trade does not meet the conditions for export tax rebates. Export tax rebates are to encourage the export of domestic products. Entrepot trade goods are not produced in the country and cannot obtain tax rebate benefits.

Elizabeth Li
Elizabeth LiYears of service:3Customer Rating:5.0

Compliance and risk managerConsult

It cannot enjoy export tax rebates. The source of entrepot trade goods is not from the country. Export tax rebates are based on the export of domestic products, which is the basic policy logic.

Amanda Yang
Amanda YangYears of service:3Customer Rating:5.0

Cost control consultantConsult

Since entrepot trade goods are not produced in the country and do not involve tax payments in the domestic production process, they cannot enjoy export tax rebates according to the regulations.

William Yang
William YangYears of service:5Customer Rating:5.0

International logistics consultantConsult

Export tax rebates are for domestically produced export goods, and entrepot trade goods are not in this category, so they cannot enjoy tax rebates.

Andrew Huang
Andrew HuangYears of service:7Customer Rating:5.0

Supply chain optimization expertConsult

Entrepot trade does not meet the requirements for export tax rebates because the goods are not produced in the country, there is no basis for tax payments in the domestic production process, and tax rebates cannot be obtained.

Michelle Chen
Michelle ChenYears of service:3Customer Rating:5.0

Business coordination consultantConsult

Entrepot trade cannot get tax rebates. Export tax rebates are for goods that are produced in the country and exported. Entrepot trade goods are not of domestic origin and do not meet the scope of tax rebates.

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Can entrepot trade enjoy export tax rebates? Let's find out!

The company plans to engage in entrepot trade but is unfamiliar with its tax policies. They inquire whether entrepot trade qualifies for export tax rebates and related tax issues, seeking to understand its tax differences from general trade. The best answer states entrepot trade typically doesn't qualify for export tax rebates as goods don't actually cross domestic customs borders nor undergo substantial value-added processing, mainly involving corporate income tax and stamp duty, differing from general trade.