Announcement on Tax Incentive Policies for Returned Goods in Cross-Border E-Commerce Exports

Announcement No. 16 [2026] of the Ministry of Finance, the General Administration of Customs, and the State Taxation Administration

To support the development of new business models in cross-border e-commerce, the tax incentive policies for returned goods in cross-border e-commerce exports are hereby announced as follows:

I. For goods (excluding foodstuffs) declared for export under the cross-border e-commerce customs supervision codes (1210, 9610, 9710, 9810) between January 1, 2026, and December 31, 2027, which are returned to China in their original state within six months from the date of export due to overstock or return, import duties and import-stage value-added tax (VAT) and consumption tax shall be exempted. Export duties levied at the time of export shall be refunded. VAT and consumption tax levied at the time of export shall be handled in accordance with the relevant tax regulations concerning the return of domestically sold goods. For goods exported under supervision code 1210, they must be returned to areas outside the special customs supervision zones or bonded logistics centers (Type B) within six months from the date they leave the zone/center for departure from China.

II. For goods meeting the stipulations of Article I for which export tax rebates have already been processed, enterprises shall, according to current regulations, repay the rebated taxes. Enterprises shall apply for the exemption of import duties and import-stage VAT and consumption tax, and for the refund of export duties, by presenting the "Certificate of Tax Repaid/Not Rebated for Export Goods" issued by the competent tax authority.

III. The term "returned to China in their original state" as stipulated in Article I means that the minimum form of the goods upon their return entry should be essentially consistent with their form at the time of original export. No accessories or components may be added, and no processing or modification may have been carried out. However, goods that have undergone unpacking, inspection (chemical testing), installation, or debugging may still be considered as being in their "original state." Returned goods should not have been used, except in cases where quality defects could only be discovered after trial use or where it can be proven that the goods were returned after being tried by the customer.

IV. For goods meeting the stipulations of Articles I, II, and III, enterprises shall submit materials such as the export goods declaration list or export customs declaration, a statement explaining the reason for return, etc., to prove that the goods are indeed being returned due to overstock or return, and shall bear legal responsibility for the authenticity of these materials.

• For goods returned due to overstock, enterprises shall provide a "Self-Declaration" as the reason statement material, committing that the return is due to overstock, and handle procedures such as duty-free return accordingly.
• For goods returned due to customer return, enterprises shall provide return records (including return or rejection records on the cross-border e-commerce platform), return agreements, etc., as the reason statement material. Customs shall handle procedures such as duty-free return accordingly.

V. Illegal activities by enterprises such as tax evasion or tax fraud shall be dealt with in accordance with relevant national laws, regulations, and provisions.

Issued by:
Ministry of Finance
General Administration of Customs
State Taxation Administration

February 6, 2026