On October 24th, the Chongqing Taxation Bureau announced that from January to August 2024, the city processed over 20 billion RMB in export tax refunds, marking a 24% increase compared to the previous year.
During a recent visit to the warehouse of Chongqing Ruishida Industrial Co., Ltd., located in the Xiyong Comprehensive Free Trade Zone, we observed the successful packaging of 300 “Chongqing-made” motorcycles for shipping to Tanzania and other African countries. From January to August this year, the company has exported more than 20,000 motorcycles, generating an export revenue of approximately $15.99 million.
In countries like Tanzania and Kenya, motorcycles serve as a primary mode of transportation for many people. Chongqing is a key production base for motorcycles in China, and these “Chongqing-made” bikes are among the leading exports to Africa.
Yang Wangfang, the financial head of Chongqing Ruishida Industrial Co., Ltd., explained, “Expanding into overseas markets requires significant upfront investment. Having the export tax refunds processed promptly improves our cash flow and enhances our operational efficiency.” He noted that the speed of export tax reimbursements has significantly increased in recent years, with funds typically being credited within four to five days. In the first eight months of this year, the company benefitted from 6.02 million RMB in export tax refunds, which has supported their ongoing expansion into the African market.
As more companies embark on international ventures, the Chinese government has raised export tax refund rates multiple times in recent years. Efforts to streamline the necessary documentation for export tax refunds, enhance processing speed, and implement new systems have further improved service efficiency.
Chongqing’s tax authorities have fully optimized their business processes by introducing paperless documentation and allowing flexible on-site verifications for export tax refunds, significantly reducing processing times. Currently, the average time for export tax refunds for normal exporters in Chongqing is within six business days, and for categories one and two exporters, it averages three business days.
In Dazhu District of Chongqing, the Longshui Hardware Market, featuring over 2,000 diverse product types and servicing more than 60,000 domestic buyers and approximately 560 foreign buyers from over 70 countries, was approved in September 2022 as a pilot market for procurement trade.
This procurement trade model is tailored for small-batch, multi-variety foreign trade and offers benefits such as VAT exemptions, convenient customs clearance, and flexible currency exchange, enabling more small businesses and individual operators to engage in foreign trade. In the first eight months of this year, 61 merchants at the Longshui Hardware Market benefited from a total VAT exemption exceeding 200 million RMB.
A representative from the Chongqing Taxation Bureau stated that the department will continue to reduce institutional transaction costs in the tax realm, alleviating burdens for export companies, enhancing convenience, and invigorating the economy, all while reducing the capital requirements for these exporters and supporting the development of Chongqing’s open economy.
