Full Question
What is the current VAT refund rate in China for HS Code 854370? Do you expect the VAT refund rate to be stable or do you expect it to change? My company is considering assembling mechanical separator machinery in China both for the domestic Chinese market and for export out of China.
Answer
My in-house licensed customs broker got back to me sooner than expected. Here is the feedback.
- The HS code you gave me was a partial code, applicable to all the following full codes below.
HS code:85437091, description: Metal or mine detectors
HS code:85437092, description: High or intermediate frequency
HS code:85437093, description: Electric fence energizers
HS code:85437099, Other
HS code:85437099.10, description: Flying data recorders and reporters
HS code:85437099.20, description: Exciters for wireless television broadcasting (having independent functions)
HS code:85437099.30 ,description: Analog/digital converters (capable of being designed or improved for military use or being designed to resist radiation)
HS code:85437099.40description: Ion source for mass spectrographs
HS code:85437099.50,description: Cipher machines (including telephone cipher machines, fax cipher machines), crypto cards
HS code:85437099.90 description: Other unlisted electrical equipment and devices, having independent functions
HS code:85437099.901 description: Other unlisted electrical equipment and devices, having independent functions
HS code:85437099.902 description: Video switchers and image separators.
- Luckily the VAT rebate rate is the same for the whole group. And I'm happy to tell you that since these industries are encouraged by the PRC government, the full 17% VAT rebate applies upon exportation, assuming the paperwork is in order and the exporting party has correct licensing.
- Things are known to change on short notice in China, but as these products are important in the eyes of Beijing, I do not expect the rate to change in the next 12 months.
