Are newcomers to the foreign trade industry always confused by tax refunds? The most outrageous case I have ever seen - a Shenzhen company exported a US$2 million LED screen last year. Because of the wrong HS code, not only was the tax refund worth US$760,000 lost, but it was also included in the customs inspection list. This is not alarmist. Among the required courses on "How to avoid pitfalls for newbies in foreign trade", the tax refund course has the highest failure rate!

Three major sinkholes on the road to tax refund

1. ​​Black agents eat the difference​ ​: They claim to charge a 3% service fee, but actually get tax refunds by falsely reporting the value of goods.
2. ​​Coding misalignment is fatal​ ​: Report the LED module of 8531 as the lighting equipment of 9405, which will directly trigger the customs warning.
3. ​​Broken bill time chain​ ​: If the date of the customs declaration form is issued 15 days earlier than the VAT invoice, the entire order will be invalid.

There was another lesson learned last month: a manufacturer mixed P4 outdoor screens and P3 indoor screens for shipment. As a result, the 220,000 yuan tax refund was not approved for eight months because the resolution parameter declaration was inconsistent. So,​ ​Don't believe the nonsense about "guarantee", compliance is the last word​​。

Required information list

Working on tax rebates is like putting together a Lego set. If a piece is missing, the whole thing won’t be complete. These three types of documents must be complete:
✅ ​​Qualification​ ​: Customs electronic port card + VAT general taxpayer certificate
✅ ​​Bill type​ ​: Proforma invoice + packing list + bill of lading + special value-added tax invoice
✅ ​​Technical documents​ ​: Product light efficiency test report + IP protection level certificate

Special attention! Since last year, customs has added​ ​LED screen color coordinate detection​ ​, if your product's color gamut coverage is less than NTSC 72%, it is likely to be judged as a "non-industrial display", then say goodbye to the 13% tax rebate rate.

How to choose between self-management and agency?

Here is a comparison of real data:

But there is a key point that many people don’t know——​ ​Regular agents must present the "Export Tax Refund Escrow Account" authorization letter​ ​. Last year, a company hired an agent who didn't even have this. As a result, 1.56 million in tax refunds were taken away, and the company is still in litigation.

Check the early warning red line

Customs big data shows that there are three major problems that are most likely to trigger inspections when exporting LED screens:

1. Power virtual standard (nominal 200W, actual measurement exceeds 230W)
2. Mixed installation and concealment (controller module entrained in the box)
3. Counterfeit origin (fake ROHS logo)

Teach you a trick: use it before shipment​ ​spectrophotometer​ ​Self-check product parameters and the error must be controlled within ±5%. One factory started to insist on random inspection of each batch last year. Now their customs opening rate has dropped from 35% to 8%, and their tax refunds are received 20 days faster than their peers.

Let me tell you something real

Looking for a tax refund agent is like looking for a partner, you have to look at the "measurements":
➊ Have you ever practiced the LED display category (let’s talk about the case video)
➋ Can you provide a risk cover agreement (they will compensate for errors in order review)
➌ Whether you have AEO certification qualifications (customs certification companies have priority for customs clearance)

Finally, an industry secret is revealed: Those large manufacturers with a monthly production capacity of more than 10,000 square meters will declare modules and boxes separately during customs declaration. Because the finished screen’s tax rebate rate is 13%, and the aluminum box can enjoy another 9% tax rebate if reported separately, this method can earn an additional 4 points of profit.

Remember, tax refund is not a matter of luck, but a matter of skill. Choose the right partner, and your LED screen can be both compliant and profitable when going global!

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