In early 2025, the State Taxation Administration (STA) of China issued the “Announcement of the State Administration of Taxation on Matters Relating to Supporting the Development of Cross-border E-commerce Export Overseas Warehouses for Export Refund (Exemption) of Tax” (State Taxation Administration Announcement No. 3 of 2025), which introduced a new policy of “tax refund upon departure“, helping cross-border e-commerce export warehouse enterprises accelerate capital turnover and enhance their international competitiveness. Local implementations in major cities such as Shenzhen and Zhejiang followed from February 2025 onward.
Read this article for a detailed breakdown of the policy highlights and implementation to help enterprises seize the resulting benefits from this policy.
Core of the Tax Refund Policy: Two Key Adjustments
1. Implementation of “Tax Refund Upon Departure”
- Effective date: January 27, 2025
- Scope: Applicable only to goods exported through cross-border e-commerce overseas warehouses (Customs Supervision Mode Code: 9810).
Declaration Rules:
- After the goods are declared for customs clearance, the tax refund (exemption) can be declared for export.
- If the goods have been sold, they shall declare for export tax refund (exemption) in accordance with the existing regulations.
- If the goods have not been sold, they shall declare for export tax refund (exemption) in accordance with the way of “departure as tax refund and sales accounting”
- When filling out the declaration details, companies should indicate “overseas warehouse pre-refund” in the “tax refund (exemption) business type” field, with the business type code being HWC-YT.
2. Cancellation of Overseas Warehouse Filing Requirement
- Effective date: December 15, 2024
- Summary:
Enterprises no longer need to file overseas warehouse operations with Customs.
No submission of additional materials such as payment receipts is required.
Recommendations to Cross-Border E-Commerce Businesses
1. Study Policy Thoroughly and Standardize Operations
Enterprises should fully understand the scope of applicability, declaration requirements, and documentation standards of the “tax refund upon departure” policy. Firms should ensure accurate declaration coding and proper retention of documentation to avoid losing policy eligibility due to procedural errors.
2. Plan Reasonably to Manage Tax Refund Timing
For enterprises stocking up during peak seasons, a multi‑warehouse diversification strategy is recommended.
By leveraging regional hub warehouses, adjusting based on shipping schedules and port congestion, and utilizing dedicated customs clearance channels, companies can:
- Speed up outbound logistics to become eligible for refunds sooner,
- Reduce capital occupancy costs, and
- Improve inventory turnover efficiency.
3. Leverage Professional Expertise to Mitigate Tax Compliance Risks
Enterprises can consult professional customs brokers and tax consultancies to obtain expert assistance in customs clearance, tax refund declaration, and settlement.
Your Trusted e-Marketplace for Cross-Border E-Commerce
The 2025 cross‑border e‑commerce export tax refund policy reduces burdens and boosts efficiency for enterprises through multiple dimensions — shortened processing cycles, simplified procedures, and fewer documentation requirements. Nevertheless, taxpayers must still complete subsequent reconciliation and maintain proper documentation.
Looking ahead, as the new policy continues to be implemented in greater depth, enterprises engaged in cross‑border e‑commerce will fully benefit from these reforms. China’s cross‑border e‑commerce export sector is expected to enter a new stage of higher quality and more efficient growth.
Discover our globally trusted and statutory-backed e-Marketplace, alongside your tax partners, to maximize the advantage of the above strengthened tax policy. Click the following banner to start exploring our diverse product categories and connect with quality buyers worldwide:
