Chongqing Export Tax Rebates Surpass 20 BN Yuan in First 8 Months of 2024, Up 24% YoY

Chongqing - Chongqing Ruishida Industrial Co., Ltd. recently shipped 300 motorcycles to Tanzania and other African countries from the Xiyong Comprehensive Bonded Zone. From January to August, the company exported over 20,000 motorcycles, totaling $15.99 million in value.

China (Chongqing) Pilot Free Trade Zone. (Photo/Zeng Cheng)

"Expanding into overseas markets involves significant initial investment. The timely processing of export tax rebates improves liquidity, allowing the company to operate more smoothly," said Yang Wangfang, the financial officer of Ruishida Industrial. 

Yang noted the faster tax rebate process, with funds arriving in 4-5 days. The company received 6.02 million yuan (around USD 850,000) in export tax rebates in the first eight months, supporting its expansion into the African market.

Motorcycles are a primary mode of transportation in countries like Tanzania and Kenya. As one of China's key motorcycle production hubs, Chongqing-made motorcycles are a crucial export to these African nations.

To help enterprises expand into foreign markets, China has raised the export tax rebate rate and streamlined the rebate process. The introduction of online tax rebate systems has further improved efficiency.

Huang Yun, spokesperson of the State Taxation Administration (STA) and director general of the General Office of the STA, noted that tax data for January to August showed a 10.1% year-on-year increase in direct export tax refunds processed by the national tax department. "This reflects the resilience and rapid growth of China's export businesses," Huang said.

Chongqing Tax Bureau offers personalized business support

In Chongqing, tax authorities have implemented paperless filing, field verification, and other measures, reducing export tax rebate processing times to an average of six days. First and second-tier enterprises benefit from processing times as short as three days.

The Chongqing Municipal Taxation Bureau has formed an international talent team to regularly share tax knowledge, including international taxation and export rebates, through an interactive platform. The team also offers online tracking, counseling, and in-person visits, providing personalized support to businesses.

In the first eight months of 2024, Chongqing's export tax rebates exceeded 20 billion yuan, a 24% year-on-year increase. This boost has been crucial in helping businesses expand their international presence.

In the first 8 months of 2024, Chongqing export tax rebates topped 20 billion yuan, up 24% year-on-year. (Graphic/Zheng Ran)

Dazu Longshui Hardware Market is the largest hardware market cluster in western China. The market boasts 12 categories of products, including daily hardware, tool hardware, building hardware, and auto and motorcycle accessories, with over 60,000 domestic buyers and 560 overseas buyers from more than 70 countries and regions.

Dazu Longshui Hardware Market is located in Longshui Town in Dazu District, Chongqing. (Photo/Huang Yuxuan)

In September 2022, Longshui Hardware Market was selected as a pilot for the market procurement trade mode, which aims to support small businesses in foreign trade. 

This model offers VAT exemptions, simplified customs procedures, and flexible foreign exchange collection. From January to August this year, 61 merchants benefited, with VAT exemptions exceeding 200 million yuan.

The service team from the Chongqing Dazu District Taxation Bureau visited Longshui Hardware Market to explain the policies related to the market procurement trade pilot program to individual businesses. (Photo/Gao Yuxuan)

"The pilot program brought excellent policies, and tax officials provided door-to-door counseling on policy and system operations, helping us individual merchants enter the international market smoothly," said Chen Ling, a Dazu District Meifeng Tools Business Department staff member.  

From November last year to August this year, Chen's business exported over 5,000 products, including massagers and power adapters, valued at 1.1 million yuan. She enjoyed VAT exemptions totaling more than 140,000 yuan.