Laws of the People's Republic of China

The Ministry of Commerce, the General Administration of Taxation

Circular of the Ministry of Commerce and General Administration of Taxation on Strengthening Coordination of Taxation and Foreign Trade and Overcoming the Impacts of "SARS" Epidemics on Foreign Trade

ShangGuiFa [2003] No.154

June 20, 2003

Foreign economic and trade commissions (departments and bureaus) of provinces, autonomous regions and municipalities directly under the Central Government and municipalities separately listed on the State plan, as well as the state tax administration:

The occurrence and spreading of the SARS has added many difficulties to the various export enterprises in undertakings of commercial activities and expansion of exports, which has become the main factor of uncertainty with impacts on the exports of our country. Therefore, various competent departments of commerce and the state tax administration shall firmly grasp the guiding spirits of the CPC central Committee and the State Council in balanced focus on the prevention and treatment of the SARS and the economic construction, unify the thoughts, enhance the understanding, further strengthen the coordination of taxation and foreign trade, and make the utmost efforts to overcome the adverse effects of the epidemics of the SARS on the export of our country, hence, safeguarding the stable growth of foreign trade export of the year. Here is to notify you of the following matters:

I.

Further strengthening communications of circumstance and doing well in departmental coordination

(I)

Improving and perfecting the communication mechanism for coordination of foreign trade and taxation and ensuring the accuracy and smooth flow of information. Further intensifying the contact between the leaders of both parties concerned and their corresponding workers, taking initiatives in communicating the progress on foreign trade exports and tax reimbursement of exports by various means and ways of telephone, fax and email, and earnestly investigating and solving the outstanding problems during work. Timely reporting material emergent incidents and making efforts in treatment.

(II)

Various levels of the competent department of commerce shall closely trace and analyze the impacts of the SARS epidemics on the enterprises and product exports of our country. Questionnaire investigation should be conducted by various means based on paper, call and computer networks, thus analyzing the impacts of the SARS epidemics on the various categories of local enterprises and product exports, especially on the key enterprises of tax reimbursement of exports, timely reporting the relevant information to various levels of tax administrations to facilitate joint investigation on the countermeasures and policies, thus making great efforts to reduce the impacts of the SARS epidemics on foreign trade exports as much as possible.

(III)

Various levels of tax administrations shall keep on efforts in promoting the measures for "exemption, credit and reimbursement" of taxes with the export commodities of production enterprises, timely communicate with the competent departments of commerce of the same level on the relevant issues, thus jointly overcoming and solving the existing problems.

(IV)

Various levels of the competent department of commerce shall practically promote the production enterprises to speed up the collection of the documents for tax reimbursement and timely handling with the "exemption, credit and reimbursement" of taxes. Various levels of state tax administrations shall practically speed up handling with the review and examination on "exemption, credit and reimbursement" of taxes, thus helping the production enterprises reduce the holding and use of capital.

(V)

Various levels of the competent departments of commerce and state tax administrations shall be increasingly alert and pay close attention on the new trends of tax frauds, strictly prevent the wrongdoers from any tax frauds by taking chance of the SARS epidemics, and submit timely reports on any tax fraud cases or clues of material tax frauds.

II.

Making good and sufficient use of the quotas for tax reimbursement of exports and practically accelerating the progress of the tax reimbursement of exports

(I)

Various levels of the competent departments of commerce shall timely report to the state tax administrations on the corresponding local exports and demands for tax reimbursement, and various levels of tax administrations shall in such special situation earnestly do well in the work relating to tax reimbursement of exports, and speed up the progress of tax reimbursement provided all the documents relating to tax reimbursement and the relevant electronic information are checked free of errors.

(II)

Various state tax administrations of provincial levels shall distribute the plan of tax reimbursement of exports distributed by the General State Administration of Taxation to prefecture and municipal level and timely reimburse the export enterprises, without any withholding or delay.

(III)

Various levels of state tax administrations shall make scientific and rational use of the plan of tax reimbursement of exports, and priority should be taken in handling with the tax reimbursement of exports of key export enterprises, thus enhancing the competitiveness of their export products in international market, and alleviating and releasing the adverse effects of the SARS on the foreign trade of China.

III.

Adopting multiple ways to expand export and create benevolent environment

(I)

Various levels of the competent departments of commerce and state tax administrations shall earnestly carry out the spirits of the Circular of the People¡¯s Bank of China, the MOFTEC and the General State Administration of Taxation on Handling with the Entrusted Loan Business of the Accounts for Tax Reimbursement of Exports (Yin Fa [2001] No. 276), timely help solving the problems and difficulties encountered by the export enterprises in the entrusted loan business of the accounts for tax reimbursement of exports, and take initiative to coordinate with the local government in doing well in the discounting work relating to the entrusted loans of the accounts for tax reimbursement of exports.

(II)

Various levels of the competent departments of commerce shall timely report to the commercial banks on the impacts of the SARS on the foreign trade exports, take initiative too seek for their supports, and promote the export enterprises to obtain the entrusted loans of the accounts for tax reimbursement of exports in a timely way.

(III)

Various levels of tax administrations shall strengthen communication and coordination with commercial banks, take initiative in coordinating commercial banks in deployment of the entrusted loans of the accounts for tax reimbursement of exports, thus facilitating commercial banks in querying about the credit rating of the enterprises involved in tax reimbursement of exports.

(IV)

Establishing convenient and smooth channels and ways for provision of enthusiastic and high efficiency consultation and services. Patience should be taken in listening the problems reflected and suggestions put forth by the export enterprises, thus earnestly and carefully answering the promoting the state policies and measures on trade management and tax reimbursement of exports; taking efforts in protecting he initiatives of the enterprises in expanding exports and helping various categories of export enterprise overcome the difficulties and problems encountered in production and operations.

(V)

Various levels of the competent department of commerce and state tax administrations shall be united in mutual supports and close coordination, promote the good traditions of the cooperation of foreign trade and taxation, make efforts to overcome the adverse impacts of the SARS, and promote the sustaining growth of foreign trade export of our country.