False Trade Cheat Export Tax Rebate "Water Injection" Trade, Take Local Subsidies

It was learned that since March 28, 2016, the company has launched a 3 month special action against counterfeit trade, aiming to purify the port's foreign trade environment and protect its legitimate interests.

As of May 11th, it has been investigated and fabricated.

140 cases, the value of about 220 million yuan, fined 694 thousand yuan, maintaining a good customs clearance environment.

"False trade promotes only the surface growth of export data, and there is no real trade support. This will inevitably distort the overall economic development and jeopardize national economic security."

Ningbo customs is affiliated with Lv Jianhai, chief of the export division of the on-site business office.

Fraudulent trade fraudulent export tax rebates

Export tax rebates are the promotion of countries around the world.

One of the commonly adopted methods of competitiveness.

China's export tax rebate is mainly to balance domestic products by repaying the export tax.

Burdens, so that products can enter the international market without tax, so as to enhance the competitiveness of products.

However, this country's policy dividend to support its domestic products has become an illegal oil enterprise funnel.

"Judging from the current situation, false trade is mainly manifested in the general trade channel, which defrauded export tax rebates by means of false reports, concealed quantities and high quoted prices."

Lv Jianhai said.

Ningbo customs has seized several high prices this year to defraud national export tax rebates.

In the 400 thousand wigs case of high price, the actual unit price is about 8 yuan for each wig. The unit price of the export declaration is 100 yuan.

In order to get more tax rebates, the companies involved reported a substantial increase in the actual price of goods, involving a tax rebate amounting to more than 360 yuan.

"False trade gains are easy. If we indulge in false trade, we will not only seriously squeeze the living space of our standardized business enterprises, but also induce more enterprises to participate in the false trade, and mess up the normal trade order at the port, forming a vicious circle, which will destroy the fundamental of the whole industry."

Shen Peijun, manager of Ningbo Port Logistics Group Co., Ltd., expressed his full support for the Ningbo customs's special action against counterfeit trade.

"Water injection" trade for local subsidies

In this special action, another phenomenon has also attracted the attention of Ningbo Customs: the trading enterprises far away from Chongqing, Guangdong, Gansu and Qinghai have been on the list of false trade manipulators.

The survey found that most of these business units are enterprises that buy and sell businesses, do not receive foreign exchange, do not receive tax rebates, do not have fixed foreign trade businesses, and can not provide VAT invoices.

In addition to the export tax rebate, what is the significance of the high quoted export price in addition to the "water injection" trade statistics? Zhu Jingjing, the export manager of Junan Products Co., Ltd. in Ningbo, broke the record: "the high price is pushing up export data to defraud the local government."

In order to encourage exports, some local governments give cash subsidies or financial concessions according to the annual export volume of enterprises to help enterprises improve their international competitiveness.

But this incentive policy has been drilled into a new "profit point" by illegal enterprises.

In order to circumvent the regulation and collect local subsidies, illegal enterprises produce false declaration documents, report the prices of commodities, and mix the goods involved through a number of custom brokers company in an attempt to reduce the probability of being investigated by the customs. Once the goods are exported, the enterprises will apply to the local governments for high subsidies.

"In the near future, we often receive telephone calls, e-mail or QQ and so on. The other side is able to offer the highest number of local subsidies.

These actions have greatly upset the customs declaration market.

Xie Jun, deputy general manager of Ningbo Free Trade Zone Jetta customs declaration Co., Ltd., was very angry about this. "The actual state of the goods declared by these businesses is totally insecure, and the risk of customs declaration is very great. If we fail to find these enterprises in the customs inspection or subsequent verification, we will be smashed the signs of our declarations."

Joint efforts to purify the economic environment

In order to effectively safeguard national security and people's interests, the General Administration of Customs has deployed the national customs to launch a joint action against smuggling "national gate sword 2016" this year. Among them, cracking down on fraudulent tax rebates and false trade violations is a priority in joint special operations.

We strongly support the special action against counterfeit trade.

Alibaba - Xiang Yuehong, Commissioner for customs clearance operations, spoke out directly. "At the beginning of the operation, the ratio of inspection and nuclear price will be improved, but this is of far-reaching significance for regulating the whole foreign trade environment and protecting the long-term interests of trustworthy and law-abiding enterprises".

Like Xiang Yuehong, Xie Jun is also in favour of combating false trade.

"The customs action against counterfeit trade is good, but it is by no means a matter of a department of customs. It requires all parties to form a consensus, coordinate governance and create a market environment that is mutually beneficial to the law."

Ningbo customs officials said that the next step will continue to strengthen cooperation with relevant departments and increase the crackdown on fraudulent and fraudulent trade such as tax fraud, fraudulent foreign exchange and fraud, and maintain normal foreign trade import and export order.