A few days ago, the Office of the United States Trade Representative (USTR) issued an announcement in the Federal Register announcing the cancellation of preferential treatment for developing countries in the WTO for 25 economies, including China and Hong Kong. The U.S.’s suspension of preferential treatment for developing countries in China indicates that it may no longer apply “special and differential treatment” to its future trade with China and instead proceed in accordance with the standards of developed countries.
According to Bloomberg reports in the United States, USTR has shrunk An internal list of “developing countries” has been established to lower the threshold for U.S. investigations into whether other countries harm U.S. industries through unfair export subsidies.
According to WTO regulations, all developing countries recognized by the World Trade Organization can enjoy special and differential treatment, including the speed and extent of tariff reductions on various products. are lower than those of developed countries. Preferential treatment for developing countries has become the basis of trade between developed and developing countries over the years.
Preferential treatment for developing countries has been revoked! Foreign trade may be affected!
In fact, in recent years, the United States has long been dissatisfied with various rules of the World Trade Organization. According to Xinhua News Agency, as early as August 30, 2018, the United States had repeatedly threatened to withdraw from the WTO system if the WTO did not make specific adjustments. It is reported that the United States has repeatedly complained that the terms of the WTO are very unfair to the American market, causing damage to domestic industries in the United States.
The report also pointed out that the United States claimed that this move would make it easier to issue fines for illegal activities by companies from China, India and other countries. It is reported that under WTO rules, a different standard is provided for the above-mentioned developing countries, requiring investigators to terminate relevant tax investigations when the subsidy amount is less than 2%.
It can be seen that under the current serious public health incidents such as the epidemic in China, the United States is still intensifying its pressure. Whether it is the epidemic itself or external pressure, the impact on foreign trade companies is huge. upgrade.
For China and other 25 developing countries, future transactions with the United States will lead to US trade costs rise. For example, it used to cost $10 to sell a toy to the United States and pay $1 in tax. The developing countries would then return the money to the company in the form of subsidies and tax rebates, so the company would have more money for development.
If China is excluded from the list of developing countries, the United States will have reasonable grounds to impose sanctions on these companies or provide subsidies and tax rebates to the same domestic industries. In the same way Under the cost reduction, the United States provides subsidies and tax rebates to local companies, so American companies will have more price and cost advantages in the market, and they will have more confidence to compete with foreign companies’ products. Companies in developing countries will lose their cost and price advantages, and their products will not be sold, and (especially companies that rely on the U.S. market) companies will encounter crises.
Such behavior is actually consistent with Trump’s policy of revitalizing the U.S. manufacturing industry.
In addition, companies’ trade costs will increase and their products will not be competitive in the U.S. market. This will also cause companies that originally focused on exports to sell back products originally sold to the United States. Domestic, but domestic demand is already so large. The original companies are already full, and new companies will face great competitive pressure.
Once the United States takes advantage of this matter, developed countries such as the European Union, Australia, Japan, etc. will definitely follow.
Once this situation forms a chain reaction, our country’s enterprises will lose their competitiveness internationally. It is actually very simple to solve this problem.
1. Expand domestic demand. As domestic demand increases, more products can be consumed. We took this approach during the 2008 economic crisis. The later “home appliances to the countryside” was the product of the policy of expanding domestic demand.
2. Continue to expand the international market. Cooperating countries along the Belt and Road, Africa and other populous countries will all be excellent markets for us in the future.
There are as many as 499,000 foreign trade companies in China! 10 “hard core” measures to fully support foreign trade companies!
In 2019, there were 499,000 foreign trade companies with import and export performance, including 406,000 private companies, an increase of 8.7% from the previous year. The world’s largest manufacturing country has a complete, independent and complete modern industrial system. my country’s output of more than 220 industrial products ranks first in the world, and domestic industries provide strong support for the development of foreign trade.
On February 16, the General Administration of Customs issued 10 measures to support foreign trade companies in resuming work and production.com/Upload/News/image/2020/02/21/20200221084455381009.png”>
Q&A: About export tax rebate preferential policies
1. Recently, our company has cooperated with a Japanese company on a new project. We plan to export a batch of goods. We need to apply for export tax refund (exemption) filing in order to apply for export tax refund. However, due to the inconvenience of transportation during the epidemic, we are unable to go to the tax authorities. Process. What should my company do to apply for a tax refund?
Answer: According to the “Announcement of the State Administration of Taxation on Tax Collection Management Matters Supporting the Prevention and Control of the Pneumonia Epidemic of New Coronavirus Infection” (Announcement of the State Administration of Taxation No. 4 of 2020) stipulates that during the epidemic prevention and control period, your company can apply for export tax refund (exemption) filing after submitting electronic data through the electronic tax bureau, the standard international trade “single window” export tax refund declaration platform, etc. , there is no need to go to the tax authorities to submit paper materials. After the tax authorities review the electronic data and it is correct, they can process the filing for your company, and will notify your company of the results via the Internet as soon as possible. After your company receives the results of the filing, you can continue Submit electronic data through the electronic tax bureau and the standard international trade “single window” export tax refund declaration platform to declare export tax refund (exemption).
2. Our company is A foreign trade export company wants to issue a “Certificate of Agent for Export of Goods”, but it is inconvenient to travel during the epidemic and cannot go to the tax authorities to apply for it. How should the certificate be issued?
Answer: According to the “State Administration of Taxation’s Regulations” “Announcement on Tax Collection and Management Matters Supporting the Prevention and Control of Pneumonia Epidemic of New Coronavirus Infection” (State Administration of Taxation Announcement No. 4 of 2020) stipulates that during the epidemic prevention and control period, your company can use the electronic tax bureau and the standard version of the International Trade “Single After submitting the electronic data to the export tax refund declaration platform such as “Window”, you can apply for the issuance of the “Agent Export Goods Certificate” without going to the tax authorities. After the tax authorities review the electronic data and it is correct, they can issue a certificate for your company and send it through the Internet as soon as possible. We will inform your company of the processing results.
3. Our company is a Category IV foreign trade export enterprise in Hubei. Before the epidemic, when applying for export tax rebates, we needed to submit documents to the tax authorities. However, due to traffic control during the epidemic prevention and control period, it is difficult to submit paper materials. Will it be impossible to apply for export tax rebate?
Answer: During the epidemic prevention and control period, your company can continue to apply for export tax rebate. . According to the “Announcement of the State Administration of Taxation on Tax Collection Management Matters Supporting the Prevention and Control of Pneumonia Epidemic of New Coronavirus Infection” (State Administration of Taxation Announcement No. 4 of 2020), during the epidemic prevention and control period, enterprises including the four categories of enterprises All export enterprises can apply for export tax refund (exemption) through paperless declaration.
Therefore, during the epidemic prevention and control period, your company can use the electronic tax bureau and the standard version of the international trade “single window” “After submitting the electronic data of export tax refund declaration through online channels such as the export tax refund declaration platform, you can apply for export tax refund. Relevant paper information will not be provided for the time being. If the tax authorities verify that the electronic data is correct and there is no suspicion of tax fraud or other suspicions, you can apply for an export tax refund and feedback the results to your company online. After the epidemic is over, your company should submit the paper materials to the tax authorities for review.
4. Our company is an export company. A batch of goods exported and sold abroad in 2019 were recently returned due to quality reasons, and the tax authorities need to issue a “Return of Export Goods” After the tax has been paid (not refunded), go to the customs to go through the return procedures. The above goods have not yet declared export tax refund (exemption). What should we do now?
Answer: According to the “Announcement of the State Administration of Taxation on Tax Collection Management Matters Supporting the Prevention and Control of the Pneumonia Epidemic of New Coronavirus Infection” (State Administration of Taxation Announcement No. 4 of 2020), during the epidemic prevention and control period , taxpayers can apply for export tax refund (exemption) related certificates after submitting electronic data through the Electronic Taxation Bureau or the standard international trade “single window” export tax refund platform.
Therefore, your company can submit the electronic data of the “Application Form for Certificate of Returned Tax Paid (Not Refunded)” through the electronic tax bureau, the standard international trade “single window” export tax refund declaration platform, etc. After the agency approves the review, it will issue a “Certificate of Tax Paid (Not Refunded) for Return of Export Goods” as soon as possible, and the results will be fed back to your company through the Internet. If your company needs to provide a paper “Certificate of Tax Paid (Tax Not Refunded) for Returned Export Goods” when handling tax refund procedures at the customs, you can contact the competent tax authority, and the competent tax authority will mail the paper document to your company’s designated address.
5. Our company is a foreign trade company in Shandong. In December 2019, it purchased a batch of clothing from a clothing production company in Hubei and exported it to South Korea. However, this company in Hubei The special value-added tax invoice issued by the enterprise to our company was lost in the mail. Due to the epidemic, the other party will not be able to provide the invoice to our company in the short term, which may cause our company to be unable to collect it before the deadline for tax refund (exemption) declaration in April. Now that I have received the tax refund voucher, can my company still apply for export tax refund?
Answer: According to the “Announcement of the State Administration of Taxation on tax collection and management matters related to supporting the prevention and control of the pneumonia epidemic caused by the new coronavirus infection” (State Administration of Taxation Announcement No. 4 of 2020) and the current export tax rebate policy regulations , Affected by the epidemic, if it is impossible to apply for export tax refund (exemption) within the prescribed period, you can apply for tax refund (exemption) after receiving all tax refund (exemption) vouchers and relevant electronic information. Therefore, if your company is unable to collect the relevant tax refund (exemption) vouchers and related electronic information before the deadline for tax refund (exemption) declaration in April 2020, you can collect the tax refund (exemption) vouchers and related electronic information as soon as possible thereafter , and then file for tax refund (exemption).
�4) and the current export tax refund policy. Due to the impact of the epidemic, if it is impossible to declare export tax refund (exemption) within the specified period, the refund (exemption) can be made after receiving all tax refund (exemption) vouchers and relevant electronic information. Exemption from) tax declaration. Therefore, if your company is unable to collect the relevant tax refund (exemption) vouchers and related electronic information before the deadline for tax refund (exemption) declaration in April 2020, you can collect the tax refund (exemption) vouchers and related electronic information as soon as possible thereafter , and then file for tax refund (exemption). </p
