The problem of product names for export tax rebates in Jiaxing

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Our company is located in Jiaxing. Recently, we exported a batch of goods, but there are slight differences between the product names on the customs declaration form and those on the value-added tax invoices. Now, when applying for a tax refund, the tax bureau requires us to explain the situation. I'm worried that the inconsistent product names might affect the tax refund process and even lead to accusations of tax fraud. Could you please tell me what regulatory requirements need to be paid attention to when declaring product names?

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Expert Q&A

Andy Guo
Andy GuoYears of service:3Customer Rating:5.0

Supply Chain Management ExpertStart a Chat

Inconsistent product names are a high-risk point in tax refund audits. According to the "Administrative Measures for Value-Added Tax and Consumption Tax on Export Goods and Services",the product names on the customs declaration form,VAT invoices,and foreign trade contracts must be logically consistent. Three key points need to be noted: First,the first six digits of the HS code must be completely identical,as this is the core field for comparison by customs and tax authorities,Second,the product descriptions should fall within the same product category. For example,"stainless steel cutlery" and "stainless steel knives and forks" are acceptable,but "daily necessities" and "electronic products" would be clearly mismatched,Third,avoid using vague terms such as "accessories" and "products". It is recommended to immediately prepare a situation explanation,attaching product images,technical parameters,and translated contract documents to prove that the product name differences are merely differences in expression rather than non-compliance with the goods. If the differences are significant,it is necessary to consider issuing a red invoice to reverse and reopen the transaction to avoid being identified as a tax fraud risk.

Victor Sun
Victor SunYears of service:5Customer Rating:5.0

Trade Risk Control ManagerStart a Chat

From the logistics operation perspective, product name issues directly affect customs clearance efficiency and tax refund success rates. It is recommended that you provide accurate customs declaration product names to your freight forwarder when booking shipping, and ensure that the product names on all export documents such as bills of lading, packing lists, and certificates of origin are fully consistent with the customs declaration form. Especially for goods involving commodity inspection, the product names on the inspection certificate must match those on the customs declaration form word for word. If the invoice product name has already been issued and cannot be changed, you can note "consistent with the customs declaration product name" in the remarks column of the tax refund declaration and attach a translation of the contract. In daily operations, establishing an internal product name cross-reference table that correlates customer order product names, customs declaration product names, and invoice product names, and having a dedicated person check them before shipment can avoid 90% of product name mismatch issues. Many textile enterprises in Jiaxing have experienced tax refund delays due to differences in Chinese and English product name translations. Standardizing this process in advance can save a lot of trouble.

Evelyn Li
Evelyn LiYears of service:3Customer Rating:5.0

Cross-border Compliance SupervisorStart a Chat

The issue of product names is not just a compliance matter, but also a matter of client trust. It is recommended to clarify with clients the declaration of product names during the contract signing stage and to note in the invoice remarks column that "the product names are consistent with the customs declaration form". If discrepancies have already occurred and need to be corrected in the invoice, you can communicate with clients as follows: "To ensure smooth tax refund and accelerate the collection of payment, it is recommended that the invoice product names be consistent with the customs declaration form. This will enable us to invest funds in the production of the next batch of orders more quickly and guarantee your subsequent delivery schedule." This approach not only demonstrates professionalism but also focuses on the interests of both parties. For long-term cooperative clients, you can add a clause to the contract: "If any tax refund losses occur due to the declaration of product names, the responsibility shall be borne by a certain party", thereby forcing the standardization of procedures. Remember, clients are more concerned about delivery schedules and payment speed. Using this point to persuade them to cooperate with product name modification will greatly increase the success rate.

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