What is Duty Drawback? Duty Drawback Review

I. Definition

my country's tariff refund system includes two types of refunds: re-export tax refund and over-tax refund. For inbound goods that have paid import tariffs, when they are re-exported after being processed, manufactured or repaired within the country, the customs will refund all or part of the original tariffs paid, which is called re-export tax refund.

After paying the tariff, if the customs or the taxpayer finds that the tax payable is less than the actual tax payable, it constitutes over-taxation. The administrative act of the customs returning the part of the actual tax payable that is greater than the tax payable to the taxpayer is called over-taxation refund.

2. Refund

According to regulations, if any of the following circumstances occurs, the taxpayer of the imported or exported goods may, within one year from the date of tax payment, submit a written statement of reasons and apply to the customs for a tax refund together with the original tax receipt. Applications made after the deadline will not be accepted:

1. Overpayment of taxes due to mistaken taxation by customs.

2. Goods exempted from import inspection approved by the customs are found to be short-unloaded after tax payment, and the customs review and approval is granted.

3. Goods that have been subject to export tariffs but have not been exported for some reason and are declared for customs clearance, which is verified by the customs.

For export goods that have been subject to export tariffs and import goods that have been subject to import tariffs, if they are re-imported or re-exported in their original state due to the variety or specifications of the goods (not other reasons), the tariffs collected should also be refunded if the customs verifies that it is true. The customs should make a written reply and notify the applicant for tax refund within 30 days from the date of accepting the tax refund application. The Customs Law emphasizes in this provision that "the goods are re-imported or re-exported in their original state due to the variety or specifications of the goods." If it is due to other reasons and cannot be re-imported or re-exported in their original state, no tax refund can be made.

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