On 30 July 2008, the Ministry of Finance and the State Administration of Taxation jointly issued a circular “Adjustment of the Tax Rebate Rates for Certain Textile, Garment and Other Exporting Products” [Caishui (2008) No. 111].  Starting 1 August 2008, tax rebate rates for the concerned products will be adjusted.

According to the Notice, export tax rebates on certain textile and garment products will be increased from 11% to 13% while the rebate rates for certain bamboo products will raise to 11%.

New tax rebate rates will be effective on 1 August 2008 for the above-mentioned products. Reference will be made to the date of export as shown on the export declaration (for tax rebate) of the products.

On the other hand, export tax rebates on certain products will be abolished.   These include pine nuts, pesticides, organo-inorganic compounds, paclitaxel, rosin, silver, zinc (containing by weight 99.99% or more), paint, batteries and carbon anode.

For export contracts signed before 1 August 2008 in which the prices of the products affected by the new tax rebate rates cannot be adjusted, the old rates will be applied provided that the goods are exported/declared at the Customs before 1 January 2009.  Enterprises should register the export contracts at the local export rebate authority before 15 August 2008.  For goods exported under contracts that have not registered by the stipulated date or goods exported after 31 December 2008, the revised export tax rebate rates shall be applied.

For details of the Notice, members may visit the following website: