It’s Official. Call Your Accountant NOW

Tuesday, June 19, 2007 19:04

It was exactly one week ago that we broke the news that the VAT rebate was going down, and now… EVERYONE is reporting it.

WSJ: China Cuts Export-Tax Rebate

China Daily: China to adjust export rebate policy on 2,831 commodities

IHT: China cuts tax rebates on exports

I gave you a week’s head start. Hopefully you called your forwarder … because everyone is pushing out their containers to beat the July 1 deadline

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4 Responses to “It’s Official. Call Your Accountant NOW”

  1. Lukas says:

    June 22nd, 2007 at 5:50 pm

    Hi, last night i received an eaxct text of the regulation, which, as I personally understand its Chinese, states clearly, that those exports, which were contracted before 7/1 will not be affected, on condition exporters bring the relevant dcouments till 20th July. This, by the way, already happened 2 months ago, when steel products rebates were lowered. Even Chinese goevrenment cannot let a third of its country exporters either loose money, or breach a contract.
    Hope the panic will cool down now. This is original text in chinese of the relevant article (complete text see http://info.china.alibaba.com/news/detail/v5003008-d1000397394.html)
    出口企业在2007年7月1日之前已经签订的涉及取消出口退税的船舶出口合同,在2007年7月20日之前持出口合同(正本和副本)到主管出口退税的税务机关登记备案的,准予仍按原出口退税率执行完毕。对在2007年7月20日之前未办理备案手续的,一律按取消出口退税执行。

  2. Rich says:

    June 22nd, 2007 at 8:09 pm

    Lukas,

    Thank you for providing this clarification. We pushed everything out ahead of time, but I am sure that many who will miss the boat will be releaved to know this.

    Have a good weekend
    Rich

  3. Lukas says:

    June 24th, 2007 at 8:57 am

    Ouch. I must apologise – it hurts to say it, but obviously I saw in the text not what it actually was there (“exports of ships”), but what I wanted to see there (“exports by ships”). Today I had meeting with a Chinese lawyer and he confirmed that I was wrong in my interpretation. Only exports of boats, or exports of building materials for abroad projects whose price has already been fixed in agreements will not be affected if the relevant documents are submitted in time… Once again sorry for the hoax. But even Chinese themselves hesitated for a few days how to interpret the regulation. 😉

  4. Rich says:

    June 24th, 2007 at 9:31 am

    Lukas,

    Thanks for your correction. Should we panic now 🙂

    Rich