This paper introduces the annual report on tax reduction and exemption for import and export goods in 2022

I. What is tax reduction annual report?

        According to the law of the People’s Republic of China on customs import and export goods entitled to duty exemption or reduction measures for the administration of article 15 of the regulations, within the period of customs supervision, the applicant shall be entitled to duty exemption or reduction in every year on June 30, submit to the competent customs (including) on the day before the goods entitled to duty exemption or reduction using status report (hereinafter referred to as the annual report entitled to duty exemption or reduction), report conditions using goods granted with duty reduction or exemption.

II. How to declare tax reduction annual report?

        1. Online system declaration

        Applicants for tax reduction or exemption can submit annual reports through the “Single Window for International Trade” or the “Follow-up of tax reduction or exemption” function of “Internet + Customs”, and import enterprises for tax reduction or exemption filed by the customs can also declare through the “Declaration Information” section of the “National Enterprise Credit Information Disclosure System”.

        2. Submit offline information

        After submitting the annual report application online through the above system, the applicant shall submit the following paper materials to the competent customs.

        (1) Report on The Use of Goods Subject to Duty Reduction or Exemption

        (2) Annual Report on The Use of Goods Subject to Duty Reduction or Exemption

        (3) If there is any change in the related situation of the goods subject to duty reduction or Exemption, the table for Changes in the Use of Goods Subject to Duty Reduction or Exemption, The Table for Changes in The Actual Import of Goods subject to Duty Reduction or Exemption, the Table for Changes of The Applicants subject to Duty Reduction or Exemption, and the Table for The Goods Subject to Duty Reduction or Exemption Not Included in fixed Assets or Not Registered and Managed according to regulations shall be submitted according to the actual situation.

        The above information can be downloaded and filled in by visiting the website of the General Administration of Customs and checking the attachment of Announcement No. 16, 2021 (Announcement concerning the implementation of the Administrative Measures for Import and Export Goods Tax Reduction of the Customs of the People’s Republic of China).

III. What are the requirements for the annual report?

        1. Time limit for declaration

        The annual report of tax reduction and exemption should be filed once a year from January 1 to June 30 (inclusive).

        2. Requirements on the number of years to declare

        Applicants for tax reduction or exemption shall report the use of goods subject to tax reduction or exemption within the period of customs supervision. Unless otherwise stipulated by the General Administration of Customs, import tax reduction or exemption shall be granted.

        The supervision period of goods is:

        (1) Ships and aircraft: 8 years;

        (2) Motor vehicles: 6 years;

        (3) Other goods: 3 years.

        The period of supervision shall be calculated from the date when goods are released for import.

        Take the import of a color doppler spectrometer on December 1, 2021 as an example. The supervision period ends on November 30, 2024. Before June 30 each year from 2022 to 2025, the annual report on tax reduction and exemption of the previous year should be filed for four consecutive years.

        3. Requirements on declaration content

        The enterprise shall truthfully fill in the “specific situation” according to the “Report Content” in the “Annual Report on the Use of Goods subject to Tax Reduction or Exemption”. During the period of customs supervision and within the following three years, the Customs shall, in accordance with the Customs Law of the People’s Republic of China and the Regulations of the Customs Inspection of the People’s Republic of China, inspect the import and use of goods subject to duty reduction or exemption by the relevant enterprises and units.

IV. Did not press the regulation to declare what consequence to have?

        Where the annual report on tax reduction or exemption is not submitted within the prescribed time limit, the customs shall include it in the catalogue of abnormal credit information according to relevant provisions.

        Where an applicant fails to report the use status of the goods subject to duty reduction or exemption in accordance with relevant provisions and applies to the Customs for examination and confirmation of the goods subject to duty reduction or exemption, tax guarantee of the goods subject to duty reduction or exemption, and subsequent management of the goods subject to duty reduction or exemption, the Customs shall not accept the application. The customs may accept the application made by the applicant for tax reduction or exemption.

Article source：Xiao er of customs affairs