According to the latest policy developments in 2025,the State Administration of Taxation, The Ministry of Finance, The Ministry of Commerce , The General Administration of Customs, And the State Administration for Market Regulation jointly issued the Announcement on Relevant Matters Concerning the Standardized Management of Export Optimization Services for Good Subject to Domestic Link Tax “hereinafter referred to as the announcement” aiming to completely end the “pay for export ” behavior in the steel and other fields through laws and regulations. The following are the core points and background analysis:
—Core policy content
1. Strict tax registration and cancellation process. Export enterprises need to confirm their tax registration information through the electronic tax bureau or tax service hall before declaring to the customs. If a company is in a state of deregistration, abnormal operation, or loss of contact , it must handle tax related issues before proceeding with customs procedures. Before applying for deregistration, enterprises need to complete tax deregistration with the tax department and obtain a tax clearance certificate to avoid tax evasion operations such as “quick registration deregistration”.
2. Key focus of crackdown: Steel pay for export. Due to the large export volume and high tax amount of steel ,and the cancellation of export tax rebates in 2021 ,some enterprises have become key targets for rectification by evading taxes through false issuance of value -added tax invoices and underreporting of goods value.
3. Legal Responsibility Enhancement. It is explicitly prohibited to forge customs declaration forms, fabricate export business ,etc. Violators may face fines of 30%-2 times the value of the goods, and even criminal responsibility .
– The operational mechanism and hazards of ‘pay for export’ operation method. Unqualified enterprises borrow the name of others for customs declaration, or sell “no invoice required” steel to downstream enterprises that need input tax deduction through false invoicing , forming a tax evasion chain. Interest chain: Exports profit by selling tax invoices, downstream enterprises falsely deduct value-added tax , foreign buyers purchase at low prices, but national tax revenue is damaged and it is easy to trigger international anti – dumping investigations.
–Policy background and implementation progress. Pre action in 2024 , we have increased our inspection efforts on export enterprises that pay taxes . Some enterprises have been pursued for tax refunds and false declarations, and have been fined. Typical cases involve paying nearly 10 million yuan in additional taxes; Industry call : China iron and Steel industry Association promotes the establishment of a joint investigation team and recommends the restoration of high-end steel export tax rebates to curb illegal exports of low -end products.
–Future impacts and challenges. Compliance pressure on enterprises: Small and micro enterprises and SOHO (individual foreign trade practitioners) need to turn to formal customs clearance channels, which may increase operation costs; International market risk: The combination of policies such as the EU Carbon Border Adjustment Mechanism (CBAM) may further compress China’s steel export space.
Summary
This announcement marks the rise of “pay for export” from a hidden industry rule to a legal target, Especially targeting the steel industry to form a precise strike. Enterprises need to adjust their compliance strategies as soon as possible to avoid being penalized retrospectively due to historical issues.
Post time: Apr-09-2025