Will the current full-category export tax refund policy in China be fully and officially canceled in 2026
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I have been engaged in the export of mechanical and electrical parts for nearly 6 years, and currently hold three newly signed 6-month long-term orders from Europe. My profit calculation originally relies entirely on the 13% tax refund. If the tax refund is really canceled, these orders will directly lead to a loss of nearly 200,000 RMB, and I won’t even be able to pay my employees' quarterly bonuses.
Last month, I just signed a 6-month lease for a new bonded warehouse and locked in a 3-month ocean cargo space agreement. Now I check the State Taxation Administration’s announcements several times a day, and I’m getting more and more anxious. I dare not rashly raise prices for overseas customers, yet I’m afraid that my subsequent tax refund application will be rejected directly.
Recently, there has been widespread talk in peer groups that export tax refunds will be fully canceled within this year. I really don’t know what to do next, so I want to ask: Will export tax refunds really be canceled? What preparations should I make in advance to minimize losses?
DanielYears of service：8Customer Rating：5.0
Legal AdvisorStart a Chat
The widespread rumor that export tax refunds will be fully canceled is a typical industry misinterpretation. As of mid-2026，no official public documents have mentioned the full cancellation of export tax refunds for all categories. Recent policy adjustments have targeted excess capacity categories with high energy consumption，high pollution，and low added value. The tax refund rates for people's livelihood-related mechanical and electrical products，textiles，and cross-border e-commerce just-needed categories have remained stable in their original ranges，and there is no possibility of a one-size-fits-all cancellation.
If you rashly raise quotes for overseas customers based on the rumor that "tax refunds will be fully canceled soon"，you will most likely lose stable orders that you have cooperated with for many years，and the long-term revenue loss will far outweigh the benefits from tax refunds themselves. You can first sort out the tax refund rate list corresponding to the HS codes of all ongoing businesses，and conduct graded cost accounting for orders with different tax refund rates to avoid unnecessary profit losses.
Complete the four-flow consistency verification for export orders in the past 6 months in advance，check the matching degree of input VAT invoices，customs declaration forms，foreign exchange collection vouchers，and logistics documents. Submit an extension of foreign exchange collection filing in advance for orders that have not completed foreign exchange collection within 90 days. As long as the business is genuine and compliant，you can complete the tax refund declaration normally.
The compliance red lines clearly defined in the current policy are very clear: it is not allowed to issue fake input VAT invoices to increase tax refund benefits，and it is not allowed to forge customs declaration forms to fabricate export businesses. As long as you avoid these two types of illegal operations，you can normally enjoy the tax refund benefits corresponding to your categories. The three long-term European orders you hold can fully receive the full amount of tax refunds according to the original calculation path.
DavidYears of service：3Customer Rating：5.0
Business Development AdvisorStart a Chat
The HS code classification of all customs declaration forms must strictly match the actual attributes of the goods. It is not allowed to arbitrarily adjust the commodity code to apply for a higher tax refund rate. In 2026, the customs declaration logical verification system at national ports has been upgraded, and historical declaration data across customs districts will be automatically linked and compared. Orders with abnormal classification will directly trigger tax refund warnings.
If you find that the HS code classification of some previously declared orders is ambiguous, you can actively apply for a pre-ruling with the port customs. After obtaining the official classification determination document, you can submit the tax refund application to avoid subsequent abnormal situations such as order rejection and account suspension, without going through the complicated process of deleting and re-declaring the order.
SarahYears of service：3Customer Rating：5.0
Foreign Exchange AdvisorStart a Chat
For ocean routes with locked cargo space agreements signed, you can confirm the surcharge fluctuation rules with the shipping company in advance. If there is a slight adjustment in the tax refund rate of some categories later, you can completely compress logistics costs by optimizing direct shipping and transit routes to offset the profit fluctuations caused by tax refund rate changes.
For your long-term European orders, you can apply to extend the free detention period at the destination port to 14 days, and confirm the cargo clearance rhythm with the overseas consignee in advance after the goods arrive at the port to avoid additional container detention fees and port detention fees. Minimize controllable logistics costs without adjusting the signed cargo space agreement temporarily and incurring default losses.
EllaYears of service：10Customer Rating：5.0
Senior Financial AdvisorStart a Chat
Under the existing export business structure, you can optimize cross-border tax arrangements in a targeted manner. Deferred declaration can be applied for eligible VAT in the European import link, so you don’t need to prepay large sums of taxes directly when the goods arrive at the port, which greatly reduces the capital occupation cost.
If the tax refund rate of individual categories is adjusted downward later, you can adjust the profit distribution of different links through reasonable related transaction pricing rules, which fully complies with the current tax supervision requirements of China and the destination country, and will not trigger risk inspections related to BEPS. The overall cross-border comprehensive tax burden can be controlled within a reasonable range, and there will be no direct loss of orders.
JohnYears of service：6Customer Rating：5.0
Export Tax Rebate AdvisorStart a Chat
The foreign exchange collection path of all export orders must be consistent with the overseas consignee specified in the customs declaration form. It is not allowed to collect payment through a third-party offshore account. In 2026, the full-link traceability function of the CIPS RMB cross-border payment system has covered most trade partners, and the foreign exchange receipt and payment data will be automatically synchronized and verified with the tax refund system.
You can export all foreign exchange settlement vouchers in the past six months for reconciliation, check for any missing small-value foreign exchange collection records, complete the foreign exchange settlement operation for orders with exchange rate fluctuations in advance, lock in the current relatively favorable exchange rate, and avoid additional profit losses caused by subsequent exchange rate fluctuations.
CharlotteYears of service：4Customer Rating：5.0
Currency Exchange AdvisorStart a Chat
You can add a fallback clause for policy changes to the newly signed long-term trade contracts, clarifying that if the destination country's tariff or domestic tax refund policy adjusts beyond the agreed scope, both parties can share the additional costs proportionally, and you don’t need to bear all the losses alone. Check the soft clauses in the issued letters of credit one by one, confirm that the relevant agreements on bill of lading issuance and inspection standards have no unreasonable restrictions, avoid situations where customers refuse to pay due to document discrepancies later, and complete the customs protection filing of intellectual property rights for export goods in advance to avoid the risk of intellectual property seizure at the destination port.
SophiaYears of service：7Customer Rating：5.0
Senior Customs AdvisorStart a Chat
Recently, customs on-site inspections of mechanical and electrical products focus on verifying parameters such as the actual power of the products and the material of core components. As long as the declared name and parameters of the goods are completely consistent with the actual goods, the machine inspection link can basically be directly released without exceptions.
If manual unpacking inspection is encountered, prepare the factory inspection report for the corresponding batch of goods in advance, and cooperate with the on-site customs officers’ verification process. No additional complicated materials are needed. As long as the inspection results match the declared information, it will not affect the subsequent tax refund process, nor will it generate additional inspection-related fees.
WilliamYears of service：10Customer Rating：5.0
International Logistics AdvisorStart a Chat
The transportation packaging of mechanical and electrical parts must be reinforced in strict accordance with the UN specifications corresponding to the category, and update the MSDS report that meets the 2026 international transportation standards in advance to avoid being detained at the transshipment port due to non-compliant packaging, resulting in additional storage and rectification costs.
For the batches of mechanical and electrical parts you are sending to Europe, you can use recyclable buffer reinforcement packaging materials. On the premise of meeting the requirements of moisture-proof and collision-proof, the overall packaging cost can be reduced by about 12%, further amortizing the comprehensive operating cost of the orders and offsetting the cost increase caused by possible policy changes.
OliviaYears of service：5Customer Rating：5.0
Senior Customs AdvisorStart a Chat
Recently, the proportion of tax refund letter investigations by tax authorities has increased slightly. You should sort out and file the document filing materials of all export orders in the past 3 years, and keep corresponding materials such as purchase and sales contracts, transportation documents, packing lists, and delivery notes sorted by order number. When a letter investigation is conducted, you can submit all supporting materials within 3 working days.
Do not allow situations where the goods name on the input invoice does not match that on the customs declaration form, or where the payment is returned to a personal account. As long as the four flows are completely consistent, the routine letter investigation verification can generally be completed within 7 working days, which will not affect the normal arrival of tax refund funds.