- Tax authorities take major step toward digitalisation
- Digital certificate process to boost trade efficiency
The General Administration of Customs and the State Taxation Administration of China are set to enhance the port business environment and facilitate cross-border trade with the introduction of electronic data verification for the ‘Certificate of Tax Paid/Not Refunded for Exported Goods’ (Certificate).
From 1 January 2026, customs and tax authorities will jointly verify the Certificate’s electronic data and customs declaration data online, marking a significant step towards digitalisation. Tax authorities will issue the Certificate electronically, and customs will utilise it for clearance verification, providing feedback on its usage.
Enterprises are required to declare and complete procedures truthfully with customs and tax authorities, as per regulations. Notably, they won’t need to apply for cancellation or replacement of certificates already used for customs clearance, simplifying the process.
In the event of system or network failures, enterprises can submit a paper certificate to customs and complete procedures as required, ensuring minimal disruptions. This move is expected to boost efficiency and ease of doing business in China’s international trade landscape.
Outlook
The shift to electronic data verification will significantly accelerate customs clearance and reduce administrative burdens. By eliminating paper-based processes and simplifying certificate management, China will enhance trade efficiency, lower operational costs for enterprises, and foster a more seamless cross-border environment.
Leave a Reply