Maintaining stability of the industrial chain, the currency moves on the priority list

China will provide more export tax refunds to ease the current financial pressure on exporting enterprises and open green channels for importing vital manufacturing parts to maintain the stability of the industrial chain, officials said Thursday. government officials.

Export tax rebates refer to a key trade policy measure to support exports. They require reimbursement of value added tax and consumption taxes already paid on exported products during manufacture, circulation and sales.

Although Chinese export growth in the first quarter exceeded expectations, a State Council executive meeting earlier this month decided to increase export tax refunds to support foreign trade growth. Businesses with better credit histories will have access to better customs clearance and easier tax refunds.

Wang Daoshu, deputy commissioner of the State Tax Administration, said that in the next stage, the government will strengthen the link between export credit insurance and export tax refund policies. export, and improve refund policies for processors.

“The country will tap into the potential of the departure tax refund policy, optimize the layout of tax refund shops and vigorously implement convenience measures,” he said, noting that the average time of export tax refund processing will be reduced to six days across the country. country this year. A similar job took 10 days in 2019.

A total of 94,000 companies received 37.7 billion yuan ($5.7 billion) in export tax rebates between March 20, 2020 and the end of 2021, after the government increased the rate export tax rebates on 1,464 products two years ago, according to STA data.

The government will step up efforts to strengthen data sharing and facilitate connections between customs, tax and other departments to further streamline export tax refund procedures, said Xie Wen, director general of the department. of the goods and services tax to the STA.

Efforts will also be made to support cross-border e-commerce businesses by encouraging qualified companies to actively claim export tax refunds, said Yuan Xiaoming, director general of the finance department at the Ministry of Commerce.

“We will promote the application of hedging products and services, facilitate docking between banks and enterprises, and make cross-border renminbi settlements more convenient, as well as help foreign trade micro, small and medium-sized enterprises to better manage exchange rate risks,” he said.

Through policy assistance, the Ministry of Commerce started working with China Export & Credit Insurance Corp at the end of February to give full play to the function of export credit insurance in risk prevention and improvement. credit.

By intensifying the use of export credit insurance, the ministry will protect an exporter against the risk of non-payment by a foreign buyer and improve the risk coverage capacity of foreign trade companies for two-way fluctuations in the exchange rate of the Chinese yuan to the US dollar, as part of overall efforts to stabilize market entities and stimulate the growth of foreign trade.

Dang Xiaohong, deputy director general of the national port administration office at the General Administration of Customs, said the administration will guide local customs departments to take action according to different modes of transportation, different industries and product characteristics to help companies solve difficulties. current clearance.

For example, customs authorities opened a green channel for the import of goods important to people’s livelihoods and provided customs clearance assistance for aviation, integrated circuits, automobile manufacturing and other industries. They also ensured the import and export of key parts and components to keep industrial and supply chains stable and smooth, she said.

Wang Bo, Head of Purchasing and Logistics Department at Taixing Jinjiang Chemical Industry Co Ltd in Jiangsu Province, said, “Although overseas demand has picked up, due to rising transportation costs and rising commodity prices, our cash flow has been tight. .”

Fortunately, the government’s tax rebate policies have greatly eased the financial pressure on the company, he said, adding that the biofuels and industrial chemicals maker received 1.14 million yuan in rebates at the export at the end of March.