Is there a tax refund for exporting refrigerators to the United States?

Whether refrigerators exported to the United States can enjoy tax rebate policies involves international trade rules, tax policies and corporate practical details. This article will analyze the policy basis, tax rebate conditions, operating procedures and corporate response strategies from multiple dimensions.

1. Basics of U.S. import tariffs and tax rebate policies

The United States generally imposes tariffs on imported goods, but has a tax rebate mechanism for specific situations. According to Chapter 19 of the U.S. Customs Act, qualifiedRe-exported goods can apply for tariff refund, but they need to meet strict time limits and procedural requirements. As a household appliance, refrigerators are usually subject to ordinary tariff rates. The specific tax rate is determined based on the HS code (such as 8418.10.00). The current average tax rate is 2%-5%.

It is worth noting that the U.S. tax rebate (Drawback) system mainly targets three types of situations: direct re-exports, exports of substitutes, and exports after production and processing. For the export of finished products such as refrigerators, it is usually difficult for Chinese companies to directly apply for the drawback.Tax policy, unless it falls under the category of re-export trade or processing trade.

2. Applicability of China’s export tax rebate policy

China implements a value-added tax refund policy for exported refrigerators.The tax rate fluctuates according to the product type. The latest catalog in 2023 shows that a 13% rebate rate is applicable to compression household refrigerators (HS84181010), while other types of refrigerators may be applicable to a 9% rebate rate. Enterprises need to present export declaration forms, special value-added tax invoices and other materials after export.Complete the declaration before April 30, 2020.

Three key points need to be paid attention to in actual operation: first, the verification procedures for foreign exchange collection must be completed; second, the customs declaration form must clearly indicate the FOB price; third, the product name of the input invoice must completely match the export goods..Some companies have failed to refund tax due to irregular bill management, and the losses can reach 10%-15% of the value of goods.

3. The impact of special provisions on Sino-US trade

301 customsTax provisions have a major impact on refrigerator exports. Since 2018, the United States has imposed an additional 25% tariff on refrigerators originating in China, resulting in a comprehensive tax rate of up to 30%. Although the tax rate will be adjusted back to the basic level after the expiration of some exemptions in 2022, political risks still exist. Companies can passAvoid some tariffs by re-exporting through a third country (such as Vietnam, Malaysia), but you need to bear about 8%-12% of the re-export cost.

According to the rules, you may enjoy the agreed tax rate. For example, if a refrigerator using Thai compressors accounts for more than 60%, a more preferential tax rate can be applied to exports to the United States, which indirectly reduces tax costs.

IV. Key strategies in corporate practice

In terms of tax planning, it is recommended to adopt the "parts export + overseas assembly" model. Disassemble the refrigerator into compressors, cabinets and other components and declare them separately. Some parts can enjoy lower tax rates. The data showsAccording to the report, this model can reduce the comprehensive tax burden by 3%-7%, but it requires an additional investment of about US$20,000 in overseas assembly lines.(USMCA) semi-finished products are shipped to Mexico for final assembly, and the finished products can enjoy zero tariffs when entering the United States. Haier and other companies have adopted this model, reducing tariff costs by about 18% on average.

5. Key points of customs declaration and compliance

Commodity classification directly affects the tax burden. If a refrigerator is declared as medical refrigeration equipment (HS9018), a 1.7% tax rate may be applicable, but FDA certification is required. In 2023, Los Angeles Customs discovered many cases of incorrect declarations, with an average ofThe fine for each container is US$42,000. It is recommended that enterprises pre-determine the HS code, which can reduce more than 60% of compliance risks.

Special attention should be paid to the certificate of origin. Non-Preferential CertificateAlthough CO) does not enjoy the preferential tax rate, it can avoid the 301 tariff retrospection. A company in Shenzhen submitted the Form by mistakeA certificate of origin, resulting in the entire batch of goods being levied punitive tariffs, resulting in a loss of more than 2 million yuan.

Generally speaking, whether refrigerators can be tax refunded when exported to the United States needs to be understood at two levels: at the U.S. level, tax refund policies are basically not applicable to direct exports of finished refrigerators, but tariff reductions may be obtained through supply chain restructuring; at the Chinese level, full VAT refunds can be enjoyed, which is the main profit of Chinese companiesGuarantee point.

Enterprises should establish a collaborative management mechanism for taxation, customs, and logistics, obtain the latest policy interpretations through professional organizations such as Lexun Financial and Taxation Consulting, and dynamically adjust export strategies. Especially under the RCEP framework, reasonable planning of the proportion of origin components may open up new tax reduction space, which is crucial for the home appliance export industry with profit margins generally less than 8%.