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National Office Of The People'S Republic Of China Released: Temporarily Exempting Processing Trade Enterprises From Tax On Domestic Sales Tax And Deferred Interest Until The End Of 2022

2022/1/13 10:54:00 0

On January 11, the office of the State Council issued the opinions on cross cycle regulation to further stabilize foreign trade, strengthen the cultivation and construction of national processing trade Industrial Park, deepen the cooperation and co construction of Eastern, central, Western and northeast regions, and encourage and support the landing and development of key processing trade projects. We should speed up the cultivation and identification of a new batch of processing trade gradient transfer key undertaking and demonstration sites, increase support, and play a leading and radiating role in demonstration. We will temporarily exempt domestic sales tax and interest of processing trade enterprises until the end of 2022, so as to stabilize the development of processing trade and reduce the burden of enterprises. The original text is as follows:

General Office of the State Council

Suggestions for further stabilizing foreign trade through cross cycle regulation

GBF [2021] No. 57

To the people's governments of all provinces, autonomous regions and municipalities directly under the central government, all ministries and commissions under the State Council and organs directly under the State Council:

At present, China's foreign trade is facing more uncertainties, instability and imbalance factors, and the foundation of foreign trade operation is not solid. In order to thoroughly implement the spirit of General Secretary Xi Jinping's important instructions on maintaining the economic operation in a reasonable range, implement the decision-making and deployment of the Party Central Committee and the State Council, further expand opening-up, do a good job in cross cycle adjustment, help enterprises to bail out, especially support small and medium-sized foreign trade enterprises, strive to guarantee orders, stabilize expectations, and promote the steady development of foreign trade

1、 Tap the potential of import and export

(1) further play the leading role of overseas positions. We should actively use the service trade innovation and development guidance fund to promote the high-quality development of overseas warehouses in the way of policy guidance and market operation. Financial institutions with cross-border financial service capability are encouraged to increase financial support for traditional foreign trade enterprises, cross-border e-commerce and logistics enterprises to build and use overseas warehouses under the premise of compliance with laws and controllable risks. (all local people's governments, the Ministry of Commerce, the national development and Reform Commission, the Ministry of finance, the people's Bank of China, the China Banking and Insurance Regulatory Commission, the foreign exchange bureau, the development bank, the export import bank and China Export Credit Insurance Corporation shall be responsible according to their respective responsibilities.)

2. Do a good job in importing bulk commodities. We will actively safeguard the domestic supply of bulk commodities. We will make overall plans to ensure the stable operation of all links in the import of bulk commodities. (all local people's governments, the Ministry of Commerce, the development and Reform Commission, the Ministry of transport, the state owned assets supervision and Administration Commission, the General Administration of customs, the grain and reserve bureau and the Energy Bureau shall be responsible according to their respective responsibilities.)

(3) tap the import potential of consumer goods. Further adjust and optimize the list of cross-border e-commerce retail imports, expand import categories, and better meet diversified consumer demand. International consumption season promotion activities should be held in a timely manner to promote the import of consumer goods. (the Ministry of Commerce, the national development and Reform Commission, the Ministry of finance, the General Administration of customs, the State Administration of Taxation and the State Administration of market supervision shall be responsible according to the division of responsibilities)

Second, to ensure the stability and smooth supply chain of foreign trade industry chain

(4) ease the pressure of international logistics. Encourage foreign trade enterprises to sign long-term agreements with shipping enterprises. Guide the local governments and import and export associations to organize small and medium-sized foreign trade enterprises and shipping enterprises to carry out direct passenger docking. Financial institutions should be supported to provide logistics inclusive financial support to qualified small and micro foreign trade enterprises under the premise of legal compliance and controllable risk. (all local people's governments, the Ministry of transport, the Ministry of Commerce, the people's Bank of China and the China Banking and Insurance Regulatory Commission shall be responsible according to their respective responsibilities) continue to strengthen supervision in the field of international maritime transportation, and crack down on illegal charges and bid up freight rates in accordance with the law. Investigate suspected monopolistic behaviors in accordance with laws and regulations. On bilateral occasions, we call for the common smooth flow of international logistics. Improve the daily monitoring and emergency dispatching mechanism, and enhance the cooperation between ports. (the General Administration of market supervision, the Ministry of transport, the Ministry of foreign affairs, the Ministry of Commerce and the General Administration of Customs shall be responsible according to the division of responsibilities)

(5) to cultivate a number of pilot projects for innovative development of foreign trade. A number of cross-border e-commerce comprehensive experimental areas will be added. (the Ministry of Commerce, the central cyber information office, the development and Reform Commission, the Ministry of industry and information technology, the Ministry of finance, the Ministry of transport and communications, the people's Bank of China, the General Administration of customs, the State Administration of Taxation, the General Administration of market supervision, the banking and Insurance Regulatory Commission, the post office and the foreign exchange bureau shall be responsible according to the division of responsibilities) and support the innovative development of offshore trade. (the Ministry of Commerce, the people's Bank of China and the foreign exchange bureau shall be responsible according to the division of responsibilities)

6. Stabilize the development of processing trade. We will strengthen the cultivation and construction of the National Processing Trade Industrial Park, deepen the cooperation and co construction of the eastern, central, Western and northeast regions, and encourage and support the landing and development of key processing trade projects. We should speed up the cultivation and identification of a new batch of processing trade gradient transfer key undertaking and demonstration sites, increase support, and play a leading and radiating role in demonstration. (the local people's governments, the Ministry of Commerce, the Ministry of human resources and social security, and the General Administration of Customs shall be responsible according to the division of responsibilities) temporarily exempt the tax deferred interest of processing trade enterprises from domestic sales tax until the end of 2022, so as to stabilize the development of processing trade and reduce the burden on enterprises. (the Ministry of finance, the General Administration of customs and the State Administration of Taxation shall be responsible according to the division of responsibilities)

(7) cultivate dual circulation trade enterprises. We will foster a number of trade dual cycle enterprises with international competitiveness, and support them to strengthen innovation in key technologies and business models. We should strengthen the supporting services for enterprises, promote and solve the problems encountered by enterprises in the development of domestic and foreign trade products with the same line, same standard and same quality, expand trade channels, and improve the supply chain network. (all local people's governments, the Ministry of Commerce, the Ministry of industry and information technology, and the General Administration of market supervision shall be responsible according to the division of responsibilities)

(8) enhance the level of trade liberalization and facilitation. Taking the entry into force and implementation of the regional comprehensive economic partnership agreement (RCEP) as an important starting point to stabilize foreign trade, make full use of market opening commitments and rules, and expand the comprehensive effect of cumulative rules of origin regions. (Ministry of Commerce in conjunction with relevant departments) on the basis of strict implementation of epidemic prevention and control requirements, all localities should scientifically and accurately implement epidemic prevention and control measures according to the type of goods and source. We will continue to optimize the business environment, further enhance the level of cross-border trade facilitation and reduce the compliance costs of import and export on the basis of ensuring effective supervision. In 2022, the average time for tax authorities to handle normal export tax rebates will be reduced to less than 6 working days. Research on timely organization of new coronavirus vaccine for overseas employees of Chinese funded enterprises to strengthen immunization, so as to help enterprises carry out economic and trade activities overseas. (all local people's governments, the Ministry of foreign affairs, the Ministry of Commerce, the health and Health Commission, the state owned assets supervision and Administration Commission, the General Administration of customs and the State Administration of Taxation shall be responsible according to their respective responsibilities.)

(9) accelerating trade adjustment assistance. We should support all localities to establish and improve the trade adjustment assistance system, actively carry out trade adjustment assistance work, and help stabilize the supply chain of the industrial chain. (all local people's governments, the Ministry of Commerce, the Ministry of industry and information technology, the Ministry of finance, the Ministry of human resources and social security, and the Ministry of agriculture and rural areas shall be responsible according to their respective responsibilities.)

3. Stabilize the market and guarantee orders

(10) consolidate and enhance the role of export credit insurance. Under the premise of legal compliance and risk control, we will further optimize the conditions for the undertaking and claim settlement of export credit insurance, strengthen product linkage, support the integrated development of domestic and foreign trade, actively expand the industry chain underwriting, expand the coverage and scale of underwriting for small and medium-sized foreign trade enterprises, increase the protection for small and medium-sized foreign trade enterprises, the risk of cancellation of orders before shipment, and cross-border e-commerce, etc Support for overseas warehouse and other new formats. (the Ministry of finance, the Ministry of Commerce, the CIRC and the China export and Credit Insurance Corporation shall be responsible according to the division of responsibilities)
(11) continue to cultivate and develop policy financing business under short-term insurance. We should encourage and guide banking institutions to innovate insurance policy financing and other products according to the needs of foreign trade enterprises, and focus on alleviating the financing difficulties and high financing costs of small and medium-sized foreign trade enterprises. If conditions permit, local governments can provide financing support to small and micro foreign trade enterprises by means of "refinancing + insurance policy financing". (all local people's governments, the Ministry of finance, the Ministry of Commerce, the people's Bank of China, the China export and Credit Insurance Corporation shall be responsible for their respective responsibilities.)

（12） We should pay close attention to foreign trade credit. We should give full play to the role of various financial institutions, carry out product and service innovation under the premise of legal compliance and controllable risk, and further increase credit support for foreign trade enterprises, especially small and medium-sized foreign trade enterprises, in accordance with the principle of marketization. (the Ministry of finance, the Ministry of Commerce, the people's Bank of China, the banking and Insurance Regulatory Commission, the development bank and the export import bank shall be responsible according to their respective responsibilities) encourage large backbone foreign trade enterprises to share information with financial institutions, strengthen cooperation, and promote large-scale backbone foreign trade enterprises to increase the credit of upstream and downstream enterprises, Guide financial institutions to provide supply chain financial products to the upstream and downstream enterprises of large backbone foreign trade enterprises. (all local people's governments, the Ministry of finance, the Ministry of Commerce, the people's Bank of China, the banking and Insurance Regulatory Commission, the Export Import Bank of China and the China Export Credit Insurance Corporation shall be responsible for their respective responsibilities

(13) enhance the ability of foreign trade enterprises to cope with exchange rate risks. Keep the RMB exchange rate basically stable at a reasonable and balanced level. Banking institutions are encouraged to carry out long-term foreign exchange settlement and sales business by means of credit or margin for qualified small and micro foreign trade enterprises in accordance with the credit conditions of customers under the premise of legal compliance and controllable risk. We will promote banking institutions to further develop long-term foreign exchange settlement and sales business for small and medium-sized foreign trade enterprises. We should strengthen publicity and training, support and guide foreign trade enterprises to establish a neutral awareness of exchange rate risk, and enhance their awareness and ability of risk aversion. (all local people's governments, the Ministry of finance, the Ministry of Commerce, the people's Bank of China, the state owned assets supervision and Administration Commission, the China Banking and Insurance Regulatory Commission and the foreign exchange bureau shall be responsible according to their respective responsibilities.)

14. Actively and steadily promote RMB cross-border trade settlement. We will expand the cross-border use of RMB under current account. We will further improve the arrangement of RMB clearing banks and steadily promote the construction and promotion of RMB cross-border payment system. (the people's Bank of China, the national development and Reform Commission, the Ministry of Commerce and the state owned assets supervision and Administration Commission shall be responsible according to the division of responsibilities)

15. Further stabilizing employment in foreign trade. For export enterprises of labor-intensive products such as textiles, clothing, furniture, shoes and boots, plastic products, bags, toys, stone materials, ceramics and agricultural products with advantageous characteristics, all localities should implement various policies and measures to reduce burdens, stabilize posts and expand employment, and increase policy support for export credit and export credit insurance in a way consistent with WTO rules. Support local human resources, social security and commerce departments to strengthen cooperation, and study and establish a fixed-point and regular monitoring mechanism for foreign trade employment. (all local people's governments, the Ministry of Commerce, the Ministry of human resources and social security, the national development and Reform Commission, the Ministry of industry and information technology, the Ministry of finance, the people's Bank of China, the State Administration of Taxation, the banking and Insurance Regulatory Commission, the export import Bank of China and China Export Credit Insurance Corporation shall be responsible for their respective responsibilities.)

4、 Strengthen organization and Implementation

Under the guidance of Xi Jinping's thought of socialism with Chinese characteristics for a new era, all regions and relevant departments should conscientiously implement the decision-making and deployment of the Party Central Committee and the State Council, attach great importance to cross cycle adjustment, especially stabilize the expectations of small and medium-sized foreign trade enterprises, earnestly support small and medium-sized foreign trade enterprises to reduce costs, implement tax reduction and fee reduction measures in place, and continue to crack down on arbitrary fees and charges We should take various measures to stabilize foreign trade. All regions should, in combination with the actual situation, issue targeted support measures, seriously organize and implement them, and promote the implementation of various policies and measures in their own regions and get effective results. The Ministry of Commerce, together with other relevant departments, should strengthen policy guidance, organize and guide localities where conditions permit to establish and improve the foreign trade monitoring and early warning system, closely track and analyze changes in the situation, and study and solve new problems. All relevant departments should, in accordance with the division of responsibilities, strengthen coordination and form joint forces to ensure the implementation of various policies and measures.

General Office of the State Council

December 29, 2021