1、Tax refund optimization helps petrochemical“go out”enterprises to achieve stability and long-term stabilityXue Feng2023.9.20.Keyword关税优化 Tariff optimizationHS编码 HS code报验状态 Inspection statusContent of communicationAnalysis of the import and export customs situation of petroleum and chemical enterpri

2、sesCoded management is the main mode for Chinese customs to supervise import and export goods.The main problems in the current export declaration process of petroleum and chemical enterprises123Achieve tariff optimization through accurate HS coding classification41.Import and export trade coded mana

3、gement modelGoodsThe HS code determines the tax rebate rate and whether it is necessary to apply for a commodity inspection or license.The practice of finance as the main body of tax refund responsibility The practice of finance as the main body of tax refund responsibility completely deviates from

4、the operating mechanism of tax refund,and completely deviates from the operating mechanism of tax refund,and eventually leads to the randomization of tax refundeventually leads to the randomization of tax refundChinaCustomsStateAdministrationof TaxationComplete tax refund!#$%&()(*$)+,*(+)-+./*012-#$

5、%&()(*$)+,*(+)-+./*012-Review,release(withhold)Refund with the customs release formThe tax shall come from the central TreasuryExport tax rebate is a general rule of international trade,not equivalent to subsidiesExport tax rebate is one of the important measures of the state to encourage exportsThe

6、 tax rate for determining the amount of export tax refund shall be determined by the commodity codeThe commodity code shall be determined by the enterprise itself in accordance with the commodity classification rulesSummary3.Operation essentials of export tax rebateCommunicationThe ContentAnalysis o

7、f import and export customs affairs of petroleum and chemical going out enterprisesCodified management is the core means for China Customs to supervise and control import and export goodsMain problems existing in the current export declaration process of petrochemical enterprises123Tariff optimizati

8、on through accurate HS code classification4Trade type ratingCreditAdvanced Certified BusinessGeneral CertificationBusinessTop 100 processing trade export enterprises6238General TradeTop 100 export companies5050Top 100 foreign-contracted engineering enterprises1387!#Customs credit rating statistics(A

9、EO)of going global enterprisesAdvanced Certified enterpriseGeneral Trade businessDiscredited businessesConvenient managementConvenient managementTightnessSupervisionThere is an audit of the tax refund:0 Non-audited:28Its not clear if they were audited:2Tax refund planning:12 companies have planned,a

10、mong which:Unplanned:2 project department responsible for planning:3It is not clear whether there is a plan:16 finance departments responsible for planning:9Those who have a review of the tax refund:0 Not assessed:26Not clear about the assessment:42.2.Results of questionnaire survey on tariff contro

11、l mechanism(30 enterprises)Results of questionnaire survey on tariff control mechanism(30 enterprises)There are storage and transportation or logistics departments:7 customs personnel delegated to the business department:2project department designated specialized personnel:21The above 30 enterprises

12、 participating in the questionnaire survey,of which,20 central enterprises,5 foreign enterprises,5 private enterprises;Among them,25 belong to EPC,investment enterprises,and 5 belong to manufacturing(supplier)enterprises.Summary of materials export classification audit for XXXX 3$150 coal-fired powe

13、r station projectError 1:Incorrect declaration of boiler structure commodity codeA total of 15 batches of export boiler structuresThe product code declared by the enterprise is 73089000,with an export tax refund rate of 9%and a value of 154.55 million yuan.The correct product code is 84029000,and th

14、e export tax refund rate is 17%.Export tax refund lossRMB 154.55 million 8%=12.364 million yuan。Error 2:Incorrect declaration of product code for air-cooled pipelines9 batches exported in totalThe product code declared by the enterprise is 73089000,with an export tax refund rate of 9%and a value of

15、48.76 million yuan.The correct product code is 84199090,and the export tax refund rate is 15%.Export tax refund loss of 48.76 million yuan 6%=2.9256 million yuan.Error 3:Wrong declaration of support and hanger product codeAtotal of 20 batches of main outlet supports and hangers.The product code decl

16、ared by the enterprise is 73089000,with an export tax refund rate of 9%and a value of18.012 million yuanThe correct product code is 84029000,and the export tax refund is 17%.Export tax refund loss of 18.012 million yuan8%=1.44096 million yuan.Total export tax refund loss of 16.73056 million yuanComm

17、unicationThe ContentAnalysis of import and export customs affairs of petroleum and chemical going out enterprisesThe coded management is the core means for China Customs to supervise import and export goodsThe main problems existing in the current export declaration process of petrochemical enterpri

18、ses123Tariff optimization through accurate HS code classification41.Misclassification,loss of national policy support for export enterprises,1.Misclassification,loss of national policy support for export enterprises,resulting in tax refund lossesresulting in tax refund lossesGas Treatment Module HS8

19、418Natural gas processing pipelineNatural gas processing pipelinePrefabricated metal pipe section system HS7305、7306Classification Conclusion：Liquefied natural gas(LNG)production equipment,which conforms to the equipment form described in the annotation of heading 8418,should be classified as commod

20、ity code 8418699090.The shipment shows an amount of RMB 14.57 million,resulting in a tax refund loss of RMB 1.89 million due to incorrect classification.Technological processFirst stage,cooled to-38 using propane as refrigerant for cooling cycle；The second stage uses ethylene as the refrigerant for

21、cooling cycle,cooling to-85；The third stage uses methane as a refrigerant for cooling circulation,cooling to-160,and becoming the output of liquefied natural gas(LNG).Equipment compositionComposed of refrigeration compressors,heat exchangers,and connecting pipelines.2.2.Customs limited understanding

22、 of the status of goods Customs limited understanding of the status of goods inspection is also one of the customs risksinspection is also one of the customs risksintermediate shaftHalf couplingshimStructural diagram of intermediate shafttype diaphragm couplingThe coupling imported by XX company is

23、used in the reforming and hydrogenation compressor unit of XX project to transmit the torque driving the turbine to the compressor.The mechanical industry standard JB/T 9147-1999 Disccouplings of the Peoples Republic of China stipulates thatthe structure of the intermediate shaft diaphragm couplingi

24、ncludes:half coupling(2 pieces),intermediate shaft,spacerring,support ring,diaphragm,and fasteners.The product attributes need to be clarifiedThe imported goods of this company are intermediate shaft diaphragm couplings,which are submitted to customs for inspection in the form of unassembled parts,i

25、ncluding 1 intermediate shaft,2 half couplings,and 6 spacer rings.After importation,installation and integration can form a complete coupling.According to General Rule 2(1)of Commodity Classification,the imported goods of the company should be declared as couplings and classified under the commodity

26、 number 8483600090.Clarify the classification basis based on customs laws and regulations1.Dont rely on the identification of freight forwarders and blindly following customs；2.Classification issues will lead to unpredictable and serious consequences.3.The non-standard declaration of names has becom

27、e an inducement for customs to impose penalties for withholding goodsEmbedded parts,embedded parts,fasteners,anchor boltsParts,spare parts,supplies,supplements、steel structure（Indonesia implements high tariffs on steel structures）%&()*)+,-)#)-./*&+0(#+1#&2-#34()5-(&/#%&()*)+,-)#)-./*&+0(#+1#&2-#34()

28、5-(&/#64*(&-#30*#*-)4.+(6#.41&051#./-*(.-#*+17164*(&-#30*#*-)4.+(6#.41&051#./-*(.-#*+171A certain enterprise declared goods under the name boiler parts and HS code,but was misunderstood by customs as a steel structure product.Later,with the assistance of a professional organization,it successfully w

29、ithdrew the case from the Anti Smuggling Bureau(rigid beam).L Lessonesson：1)Irregular declaration has triggered customs inspection and is likely to be punishedby the Customs Anti Smuggling Bureau2)The inspection process failed to effectively persuade customs and missed the opportunity to solve the p

30、roblem3)Choosing customs pre classification or pre ruling is an effective means to avoid risks.序号No.箱体号PACKAGE No.品名及规格DESCRIPTION&SPECIFICATIONS数量QUAN.(PCS)包装形式PACKING STYLE重量（公斤）WEIGHT(kg)尺 码（厘米）DIMENSION(CM)体积（立方米）VOL(M3)1HSPP-CNEEC-2#-MZ-HBC-AEH-1/38垂直支撑（八）VERTICAL BRACE（NO.8）1捆装BUNDLE3,956 3,97

31、6 1,283 45 85 4.91 21HSPP-CNEEC-2#-MZ-HBC-AEG-21/22节点连接板(二)CONNECT JOINT PLATE(NO.2)1螺栓包装BOLT CARGO711.8716.8192.232144.90.89 28HSPP-CNEEC-2#-MZ-HBC-ADH-28/49梁(八)BEAM(8)1捆装BUNDLE3872.83892.81447.774758.03 19HSPP-CNEEC-2#-MZ-HBC-ABH-19/24柱（八）COLUMN(N0.8)1裸装NUDE12,145 12,145 880 135 86 10.22 5HSPP-CNE

32、EC-3#-MZ-HBC-AGA-5/6水平支撑 一HORIZONTAL BRACE NO.11捆装BUNDLE1,007 1,057 650 96 96 5.99 1HSPP-CNEEC-3#-MZ-HBC-AAB-1/12柱底板COLUMN BASE PLATE1捆装BUNDLE638 688 70 70 30 0.15 1HSPP-CNEEC-2#-MZ-HBC-UAC-1/20格栅板GRATING1捆装BUNDLE1594 1574 101 99 130 1.300 20HSPP-CNEEC-2#-MZ-HBC-UAC-20/20斜梯SLANTING LADDER1捆装BUNDLE17

33、38 1718 460 100 109 5.014 2HSPP-CNEEC-2#-MZ-HBC-UCC-2/6平台立柱Platform column 楼梯立柱Staircase column 1框架FRAME4168 4018 282 111 118 3.694 4HSPP-CNEEC-2#-MZ-HBC-UCC-4/6扶手管Arm rest tube 横杆Cross rod 1框架FRAME7449 7299 604 89 90 4.838 5HSPP-CNEEC-2#-MZ-HBC-UCC-5/6踢脚板Skirtboard 1框架FRAME5083 4983 404 62 50 1.252

34、 2HSPP-CNEEC-3#-MZ-HBC-ALA-2/11螺栓bolt1木箱（wc）1,422 1,537 122 95 92 1.06 The classification of boiler parts by steel structure resulted in a tax refund loss of 8%Document review process before customs declarationPurchasing or project departmentFreight Forwardingcustoms broker81-#1&4)9#:;-./*&+0(#+1#(0

35、
&()*)+,-)-(/&+-1?Provide shipping listGenerate packing list and invoiceReview and confirm customs declarationThe HS code classification based on the status of application for inspection has achieved the optimization of tax refund!#$%&()%$&*+,-./&01&2(3&%4(2%+2(#56&7()8(#$56&$(29:;&*+,-1?:#$%&9(;%

36、&4(5%A&*+/BC&.,1+2%$&52=D2=%&*+,-1?:$2&*+,-./&2(3&%9=)8&01!3)4/+)56).&7+)2/*88),+)7+(+-10+7),9)(/+)102%+.(1&0)2(*(:2;)/1./)10.8:7+2)(/+)=&88&General rules for the interpretation of the Harmonized System II(I)import and export goodsIncomplete or unfinished goods at the time of inspectionUnassembled o

37、r disassembled parts at the time of inspectionIncomplete or unassembled parts or disassembled parts at the time of application for inspectionHS code classification is subject to inspection statuscommunication contentAnalysis of import and export customs affairs of petroleum and chemical enterprises

38、going outCoded management is the core means of Chinese Customs to supervise import and export goodsThe main problems existing in the current export declaration process of petrochemical enterprises123Tariff optimization through accurate HS code classification4?+&:07)&=).*,&0)+7:.(1&0)*07)2(+*79)&).*2

39、+3/(6-13!7307&-&-*#/+3&+(6#+(6Offshore oil and gas processing platformWater lifting pipeline for offshore oil and gas processing platformPipeline diagram for waste heat boiler,biological power plant boiler,coking,and natural gas projectsPipelines used in various industrial projects and equipmentAnal

40、ysis of typical cases of customs declaration optimization(steel welded storage tanks)Steel plate export declaration portPrefabricated steel plate export declaration portSite prefabricationassembleassembleAnalysis of typical cases of customs declaration optimization(steel welded storage tanks)After l

41、aser cutting,edge planing,residual magnetic testing,flaw detection,rounding,machining and other processes.Prefabricated wall panels for storage tanks#$%&()7+.8*(1&0)&=)712*22+-,8+7%*(2)&=)2(&*+)(*02A(7#B/#(-/1&0*6-#&(7#$%&()7+.8*(1&0)&=).&8&)-*2(+,*(./!#$%&()*$%+),-The tax number declaration of colo

42、r masterbatch is currently a special target of the Tax Administration of the General Administration of Customs,and there is a high probability of control,inspection,seizure,and transfer of smuggling.Recently,several cases of false declaration of color masterbatch tax numbers have been filed for anti

43、 smuggling.Enterprises arbitrary declaration of color masterbatch will face legal risks such as inspection,withholding of goods,and administrative penalties for anti smuggling.The declaration of HS codes in the color masterbatch industry urgently needs to be standardized.In July 2023,a certain impor

44、t and export company in Jiangsu declared to the customs that 26 tons of color masterbatches were exported to the Philippines through general trade methods.The declared components were 95%polyethylene,3%pigment,and 2%dispersant,with a declared product number of 3901200099 and an export tax refund rat

45、e of 13%.After customs inspection,it was found that the actual goods did not match the declaration.The G1 red color masterbatch of 3000kg should be classified as 3206499000;The G2 pink masterbatch weighs 3000kg and should be classified as 3206499000.The export tax refund rates for the above correct

46、tax numbers are all 0,involving a 13%tax refund difference.Anti smuggling has recently conducted a case investigation on this enterprise.The confusion in HS code declaration for color masterbatches mainly stems from the complexity of the industries involved.Due to the high market demand for color ma

47、sterbatches,they have developed rapidly in recent years,but a unified industry standard has not yet been formed,resulting in confusion in the tax numbers declared to customs.This crackdown by the General Administration of Taxation will play a role in standardizing declaration.For the transferred ent

48、erprises,if they can be standardized in advance,it will greatly reduce the economic losses caused by inspection,seizure,and smuggling.1.Inadequate ideological understanding and even misunderstandings are the fundamental reasons for insufficient tax refunds or even repeated penalties and downgrades b

49、y customs.2.Lack of accurate understanding of the customs coding management model,on the one hand,it stays on the simple registration seat,and once encountering problems,it is easy to go to extremes,completely unclear whether the HS code classification is based on the inspection status.3.Lack of cle

50、ar understanding of the entity qualification of the enterprise itself in the declaration process,blind reliance on customs or freight forwarders(customs brokers),resulting in putting the cart before the horse and burying hidden dangers.Elements that make up an accurate declarationDeep understanding

51、of product attributesAccurate interpretation of the General rules for the interpretation of the Harmonized SystemAccurate grasp of declaration statusYaying specializes in providing consulting services for customs affairs of foreign contracted projects.Over the past 14 years,we have accumulated over

52、300 million CNY in tax refund losses for import and export enterprises.Introduction to Yayings Customs Consulting BusinessNWEPDIHub 2*660MW coal-fired power plantCPECC Laos Hongsa 3*626MWcoal-fired power plantGezhouba GroupTakalar 2*150MW coal-fired power plantChengda EngineeringIndonesia Cilacap ph

53、ase III 1000MW coal-fired power plantIndonesia steel plant project of Puhang ConstructionChina HuanqiuVenezuelas 5000 ton daily oil and gas treatment project!#$%&()*+#,(#-./(#&$(%.*(0!#$%&()*+#,(#-./(#&$(%.*(0East Malaysia KK190MWGas turbine waste heat boilerVietnam Vung Ang 2600MW coal-fired power

54、plantLaos Hongsa coal-fired power plantVietnam H3 coal-fired power plant!#$%&!#$%&2622MW coal-fired power plant2009201020102015!#$%&()%*+,(-.%/01(2%*334/01(!#$%&()%*+,(-.%/01(2%*334/01(!%#&5%67&*31(85%67&*31(9*4*3(:*+1(2*7.%1(!%#&5%67&*31(85%67&*31(9*4*3(:*+1(2*7.%1(27.7./27.7./!#$%&(3#&*7#.,(;*#+1(

55、!#$%&(3#&*7#.,(;*#+1(?.#.%+7*1(5%(!57377.%+1(A5*73*.1(2*3*0+7*1(?.#.%+7*1(5%(!57377.%+1(A5*73*.1(2*3*0+7*1(B*./3*%+51(!*C7+*.1(D*47()*E7*1(B*./3*%+51(!*C7+*.1(D*47()*E7*1(AFC70%AFC70%1(1(!#3*.1(5%(G.7%(D*%+1(2%H7
(=%.%I4%3*(!#3*.1(5%(G.7%(D*%+1(2%H7
(=%.%I4%3*(*.(6#%J(KL%(MN(.7%+(*.(%/7#.+J(*

56、.(6#%J(KL%(MN(.7%+(*.(%/7#.+J(-.%7+%(0%,(8%.*3(%.%7+%1(+*%-.%7+%(0%,(8%.*3(%.%7+%1(+*%O O#P.%(%.%7+%1(Q#%7/.(%.%7+%1(7L*%(#P.%(%.%7+%1(Q#%7/.(%.%7+%1(7L*%(%.%7+%.%7+%Review of Major Overseas Engineering Projects202220023!#$%&!#$%&2622MW coal-fired power plantShizuoka BiopowerPlant,Japa

57、nPhilippines 2622MW Gas Turbine Waste Heat ProjectIndonesia Metallurgical Project1.Provide accurate declaration elements(HS code);2.Timely and effectively respond to customs inspections;3.Provide full process services for product pre classification and pre judgment;4.Establish a database to provide

58、inspection status control and risk warning services for major joint points;5.Establish annual customs audits and post project customs audit services in the enterprise;6.Provide optimization plans for tax refunds before project shipment and solutions for customs anti smuggling classification issues.!#$%&()#*$%+(,-(.(/(/()#*0%*1/2(%13%3.3%*1!#$%&()#*$%+(,-(.(/(/()#*0%*1/2(%13%3.3%*1薛峰 Xue FengShanghai Yaying Shipping Co.,Ltd.137 0181 5252（same as WeChat）Thank you for listening