The basic requirements for customs management of processing trade are the full export of goods, and the systems, processes and specific regulatory requirements for processing trade are designed around this requirement. In cases where this requirement cannot be met, i. E. Where neither the material nor the finished goods are fully exported, the internal deduction tax, the recovery of the tax, and the fine until criminal liability is imposed, respectively, for specific reasons。
In all four of the above-mentioned cases, with the exception of internal sales taxes, all of which are dealt with by customs in the case of enterprises detected at an ex post stage. Only internal sales taxes are procedures initiated by enterprises on their own initiative in the course of normal processing trade operations, in other words, normal internal sales taxes are those businesses that may, on their own initiative, handle the controlled business properly before customs penalties, without imposing additional penalties, etc。
Thus, we can say that the issue of internal taxation is an important one for many processing trading enterprises and that it is necessary to give high priority, to study carefully, to achieve a reasonable and legal tax, to pay neither “ingratitude tax” nor to avoid the troubles associated with a low level of leakage。
Here, we would like to discuss with you a very important issue on the subject of intra-process trade taxation: how the taxed price of domestically sold bonded goods is determined。
Why discuss such an issue? Let's see how taxes are calculated:
Tax = exhaustion price x tax rate
It is easy to understand how much tax will be affected by ex-tax prices and rates, but in the context of the processing trade, we find that there is little room for “tax rates” to be explored at this time, because intra-processing trade sales must have occurred after the establishment of the processing trade manual and the actual import of goods, and the tariff numbers for the material or finished goods have been determined. In such cases, the only factor that affects the amount of taxes is the “taxed price”。
The importance of tax clearance prices for intra-processing trade sales can also be understood from a different perspective, namely, the extent to which customs attaches importance to this issue。
Until 2014, the customs regulations for determining the price of tax clearance were divided into three main areas: the price of goods, the price of goods, and the price of goods and articles in question。
On 25 december 2013, decree no. 211 of the general customs administration and decree no. 213 of the people's republic of china, respectively, introduced the measures for validation by customs of the exchequer prices of insurance taxed goods and the measures for validation by customs of the customs of the people's republic of china of the exchequer prices of imported and exported goods, which were formally implemented on 1 february 2014。
We find that the determination of the price of the goods and the determination of the price of the goods and goods involved in them have not changed, except in the area of the price of the goods, by dividing into two the measures for validation of excise prices of imported and exported goods by customs of the people's republic of china, which were originally issued by decree no. 148 of the general customs administration, and by clearly defining, in a separate normative document, the system for the reimbursement of the price of goods subject to internal sales insurance tax, which is sufficient proof of the importance of the process of determining the tax price of goods subject to internal sales tax。
Since internal taxation is a procedure that enterprises can control at their own initiative, we certainly have to take the initiative to guard against risks
Since tax clearance prices are almost the only factor affecting taxes, we certainly need to be fully convinced of this
Since the customs service has a separate special regulation on the price of goods taxed on internal sales, we certainly need to study this provision carefully。
In the original price method of order no. 148, the determination of the tax-exempt price of a premium or finished product was established as part of the “tax-exempt price of special imported goods”, with only four articles (arts. 27-30) and article 53 specifically provides for procedures for challenge and consultation in the determination of the tax price of processed trade goods。
In order 211, however, the provision was extended to 18 articles, even without taking into account some of the principles and procedural provisions that had to be reiterated in separate writings, and to the extent that they were operational in nature, the internal selling method also provided for more comprehensive, detailed and reasonable provisions than before。
On the one hand, while this suggests that customs regulations are increasingly close to the actual, more detailed and operational aspects of processing trade operations, on the other hand, for processing trading enterprises the difficulty of understanding the provisions is somewhat greater, and many companies are still confused about how they should determine the price of their own bonded goods。
In order to help you understand and grasp the internal pricing method, we have reworked the specific provisions of order 211 to enable enterprises to find the correct price determination method by means of simple and clear positioning, avoiding misinterpretation, proactive risk prevention and reasonable legal taxation, not paying more “ingratia” and avoiding the troubles associated with the lack of communication。
For more information, please listen back to decomposition。
