The export tax rebate system constitutes a tax legal framework adopted by a nation or region. Its central tenet revolves around the refund or exemption of indirect taxes that goods have incurred during domestic production and circulation upon their exportation. The establishment of this system is designed to enable exported goods to penetrate the international market at a tax-free price, thereby enhancing their competitive edge in the global arena. Concurrently, it averts the double taxation of goods in cross-border transactions, thus fostering the growth of export trade. In recent years, the state has been continuously refining the export tax rebate process, resulting in a significant reduction in processing time and a substantial enhancement in efficiency. Moreover, the progressive implementation of paperless customs clearance, the reform of the foreign exchange underwriting system, and the ongoing improvement of facilitation services for cross-border trade renminbi settlement have all provided robust support for export enterprises to generate foreign exchange, further propelling the prosperity of export trade.

To preserve the normalcy of the foreign trade industry and the integrity of the export tax rebate system, relevant authorities have consistently maintained a stringent crackdown on illegal and criminal activities such as fraudulent export tax rebates. The Ministry of Public Security, the Supreme People's Court, the Supreme People's Procuratorate, and other departments have continually underscored that the illegal and criminal acts of obtaining export tax rebates will be a focal point of future enforcement efforts. In response to the high incidence of tax fraud in practice, the "two Supremes" have promulgated new judicial interpretations, which has consequently heightened the criminal risks associated with the tax-related activities of foreign trade enterprises. Adhering to the principle of "who exports, who collects foreign exchange, who refunds taxes, who bears the responsibility," export enterprises shoulder the bulk of tax risks, either due to non-compliance with documentation leading to non-refundability or involvement in cases of fraudulent invoicing and tax fraud. In the face of increasingly stringent regulation, foreign trade enterprises are compelled to bolster their tax compliance efforts.

The Hwuason Law Firm team has meticulously prepared this "Foreign Trade Industry Tax Compliance Report (2025)" based on an in-depth observation of the foreign trade industry and a profound summarization of the experience garnered from representing foreign trade enterprises in tax-related cases in recent years. This report encapsulates the five common types of tax-related risks prevalent in the foreign trade industry, identifies the four major areas of high incidence, analyzes the six major causes of tax-related risks by examining the dynamics of tax regulation in the foreign trade industry and the data from tax-related cases, and captures typical administrative and criminal cases of export tax refunds for in-depth analysis. Furthermore, it proposes key points of administrative remedies and criminal defense strategies in a targeted manner, based on the aforementioned analysis, with the aim of offering suggestions for tax compliance in the foreign trade industry and contributing to its sustainable and healthy development. The report is divided into nine sections.

The report is divided into nine sections, with the full text comprising approximately 50,000 words.

Click to download:《Foreign Trade Industry Tax Compliance Report》 (2025)