As 2024 approaches,import enterprises are faced with the task of annual duty exemption and reduction declaration.Understanding and following the correct annual duty exemption and reduction declaration process is crucial for compliant operations.This article aims to provide a detailed explanation of the annual duty exemption and reduction declaration process for imported goods in 2024,helping enterprises effectively complete this important annual task.

1.What is the "Annual Report on Tax Reductions and Exemptions"?

Declaration requirements

According to the Regulations on the Completion of Goods Declaration Forms of the Customs of the Peoples Republic of China: According to the Administrative Measures for Duty Reduction/Exemption on Goods (Customs General Administration Order No.245),the duty reduction/exemption annual report refers to the Report on Usage Status of Duty Reduction/Exemption Goods that enterprises must submit before June 30 each year during the customs supervision period.This report covers the usage of duty reduction/exemption goods under customs supervision in the previous year.Customs conducts inspections according to relevant regulations.

Important Considerations

Enterprises failing to submit annual reports on time will have their duty reduction/exemption review confirmations,duty reduction/exemption goods tax guarantees,and related follow-up management services suspended by customs.

II.Who needs to file the "Annual Report on Tax Reductions and Exemptions"?

All units with duty reduction/exemption goods still under customs supervision during the previous year (2023) must declare the annual report.The supervision period is calculated from the date of import release.

Supervision period for imported duty reduction/exemption goods

(1) Ships,aircraft: 8 years

(2) Motor vehicles:6 years

(3) Other goods: 3 years

The China - Europe freight train is a container international railway intermodal train operating between China and Europe and countries along the Belt and Road Initiative.It is an important carrier for deepening economic and trade cooperation between China and these countries.

Taking the tax-free equipment imported on January 30,2020 as an example,the supervision period of this equipment ends on January 30,2023.Therefore,the enterprise needs to submit the tax-free annual reports for the corresponding years in 2021,2022,2023,and 2024 respectively.

III.How to Declare the "Annual Report on Tax Reductions and Exemptions"?

Paper declaration method

Online declaration: Enter the "China International Trade Single Window—Post-Duty Reduction and Exemption" module to perform electronic data entry and declaration.

Offline submission: Print the Annual Report on Usage of Duty Reduction/Exemption Goods,and submit it along with the Report on Usage Status of Duty Reduction/Exemption Goods and attachments to the competent customs authority.

Customs Review: The submitted materials will undergo customs review.

Completion: Once the customs review is approved,the annual report filing process is completed.

Paperless Filing Method

Online declaration: Enter the "China International Trade Single Window—Post-Customs Clearance for Duty Reduction and Exemption" module,and input and upload the "Report on the Usage Status of Duty-Reduced or Exempted Goods" along with its attachments and electronic data.

Customs Review: After completing the online filing,the materials will be reviewed by customs.

Completion: Upon approval,the paperless filing process is completed.

Fixed Format

Duty reduction/exemption applicants can download the relevant forms from the Legal Documents and Related Report Format Templates attachment of the General Administration of Customs Announcement No.16 of 2021.

Correctly understanding and following the annual duty reduction/exemption report filing process is crucial for import enterprises.This process ensures compliance under customs supervision,helping maintain a companys good reputation and stable operating environment.By completing the filing accurately and on time,enterprises can effectively avoid adverse consequences such as failure to obtain duty reduction/exemption review confirmation,tax guarantees,and subsequent management of duty-reduced/exempted goods.