Considering starting a trading business, heard that transshipment trade is easy to do, and inquiring about the specific reasons. The best answer points out that transshipment trade is easy to do due to the ability to profit from tariff policy differences, circumvent trade barriers, integrate global resources, broaden sales channels, and operate flexibly, demonstrating good operability with these advantages.
Can transshipment trade qualify for tax rebates? What are the reasons?
Resolved
Our company is recently considering engaging in transshipment trade business. We heard that export tax rebates can reduce costs and increase profits. So we want to ask if transshipment trade can qualify for tax rebates? If yes, what is the principle behind the tax rebate? If not, what are the reasons why it cannot? We hope to receive professional answers so that we can have a clear understanding before commencing business and avoid unnecessary trouble later.
Trade Expert Insights Answers
Transshipment trade generally cannot qualify for tax rebates. This is because export tax rebates are primarily for goods that are actually exported from our country to overseas and have paid value-added tax, consumption tax, and other circulation taxes domestically. In transshipment trade, the goods are not substantially processed or produced in our country; they are merely transited through our country and do not incur corresponding taxable behavior domestically. For example, goods from Country A are transshipped to Country B via our country, and the goods are shipped directly from Country A to Country B without entering our customs territory for processing or other value-adding steps. Therefore, it does not meet the requirements of export tax rebates regarding the origin of goods and the payment of circulation taxes. At the same time, transshipment trade is essentially a purely trade intermediary service, mainly involving logistics and trade process operations, rather than domestic production and sales taxable activities, and thus cannot enjoy export tax rebate policies.
Transshipment trade does not qualify for tax rebates. Simply put, tax rebates are to encourage the export of domestic products. Since transshipped goods are not produced or manufactured domestically and have not gone through tax payment procedures domestically, they naturally cannot be rebated.
From the principle of taxation, tax rebates are for refunding taxes already levied domestically. Since transshipped goods do not go through the tax levying process domestically, they cannot be rebated. This is based on the fundamental logic of tax policy settings.
Transshipment trade cannot qualify for tax rebates because the goods do not undergo domestic processing and value addition, which is different from normal export goods that are produced, taxed domestically, and then exported. Therefore, it is not within the scope of tax rebates.
Export tax rebates are for domestic production and export products. The origin of transshipped goods is not domestic, so it does not meet the requirements for the origin of goods for tax rebates. Therefore, tax rebates are not possible.
Transshipment trade does not involve the payment of taxes on domestic production. Tax rebates require that goods have a record of tax payment domestically, and these two do not match, resulting in no tax rebate.
Transshipment trade does not qualify for tax rebates because its nature is different from general export business. General exports involve domestic production, processing, and tax payment, while transshipment trade does not, hence no tax rebate.
Since transshipped goods do not incur taxable behavior domestically and do not meet the conditions for tax rebates, they cannot be rebated. This is clearly stipulated by policy.
Transshipment trade cannot qualify for tax rebates because the goods are not produced or taxed domestically. The tax rebate policy does not apply to this form of purely transit trade.