Detailed Explanation of Tax Preferential Policies for Export Returned Goods in Cross border E-commerce

Currently, the cross-border e-commerce industry is in a golden stage of rapid development. In order to further support the standardized and healthy growth of this emerging foreign trade industry and effectively relieve difficulties for cross-border e-commerce enterprises, the Ministry of Finance, the General Administration of Customs, and the State Administration of Taxation jointly issued a notice on tax preferential policies for cross-border e-commerce export and return goods. The core objective of this policy is to reduce the economic cost of the return process for enterprises, resolve operational concerns caused by unsold and returned goods, and continue to support the high-quality development of new forms of foreign trade. This article will provide a detailed breakdown of the core content and implementation requirements of the policy, clarify the policy points and practical considerations for enterprises, and help them accurately enjoy the policy dividends.

1. Execution deadline

   Starting date: January 1, 2026

   Termination Date: December 31, 2027

2. Scope of application

   The scope of application of this policy is clear as follows: Goods declared for export through cross-border e-commerce customs supervision codes (including but not limited to 1210, 9610, 9710, 9810) that are returned to the country in their original state within 6 months from the date of export due to unsold or returned goods can enjoy relevant tax incentives (except for food).

• For returned goods that meet policy conditions, import tariffs, import value-added tax, and consumption tax will be exempted, directly reducing the cost of returning imports for enterprises.
• The export tariffs that have been lawfully collected during the export of goods are allowed to be refunded in accordance with regulations, reducing the occupation of enterprise funds.
• For goods that have already been processed for export tax refund, the refunded tax amount must be paid in accordance with the relevant regulations of the tax department when returning them; After the supplementary payment is completed, relevant certification documents issued by the tax authority can be used to apply for import tax exemption and export tariff refund procedures, ensuring smooth policy integration.

The policy specifies the core standard of "returning goods in their original state": the returned goods must be basically the same as the original export form, without adding any accessories or components, without processing or modification, and in principle have not been used. It should be noted that routine acceptance operations such as unpacking inspection, installation and debugging, as well as trials conducted to investigate quality issues, do not fall within the scope of "use or modification" and do not affect policy application.

• When applying for policy benefits, enterprises are required to submit complete proof materials as required and be responsible for the authenticity and legality of the materials. The specific requirements are as follows: basic materials such as export list and explanation of return reasons need to be submitted;
• If the shipment is returned due to unsold goods, an additional "self declaration" (explaining the situation of unsold goods) must be provided;
• If the shipment is returned due to reasons of return, additional supporting materials such as platform return records and return agreements must be provided.

The policy clearly emphasizes that enterprises must strictly comply with tax laws and regulations and relevant provisions of this policy, and standardize the handling of return and tax declaration procedures. If there are illegal and irregular behaviors such as tax evasion and fraud, relevant departments such as taxation and customs will handle them in accordance with the law and hold the enterprise legally responsible.

The introduction of tax incentives for returned goods in cross-border e-commerce exports is an important measure for relevant departments to support the development of the cross-border e-commerce industry. It can effectively reduce the economic burden of enterprises facing unsold and returned goods, lower business risks, and further optimize the business environment for cross-border e-commerce exports, injecting new momentum into the sustainable and healthy development of the industry. We would like to remind all cross-border e-commerce enterprises to accurately grasp policy points, strictly comply with implementation requirements, fully utilize policy dividends, standardize operations, actively develop, and promote the improvement and efficiency of their cross-border e-commerce business, reaching new heights.