China Exit Information: Regulations & Tax Refund Policy

China Exit Regulations

Outward passengers will go through three procedures when leaving China: Choose Channels – Customs Declaration – Customs Examination

Choose Channels

If outward passengers have nothing to declare, choose "Nothing to Declare Channel" (Green Channel), and they have carried articles which need to be declared, choose "Goods to Declare Channel" (Red Channel). Passengers can ask the Customs officers for or just choose the Red Channel if they are not certain about how to choose the right channels.

Custom Declaration

Outward passengers carrying out the following articles shall choose "Goods to Declare Channel".

1. Camera, video camera, laptop computer or other trip necessities valued each at over RMB 5,000.

2. RMB 20,000 cash or above, or any other foreign currencies in cash equivalent to US $5,000 or above.

3. Cultural relics, endangered animals and plants and their products, biological species resource, gold, silver and other precious metals.

4. Goods of commercial value, samples, advertisements.

5. Radio transmitters, radio receivers, communication security equipment.

6. Other articles which are prohibited or restricted to bring out China in accordance with the law.

Note:

(1). Personal articles shall be limited to PERSONAL USE only and subject to RESONALBLE QUANTITY control. "Personal Use" means private use or as gifts to relatives or friends, but not for selling or lending. "Reasonable Quantity" means the normal quantities based on the travel purpose and the length of residing time.

(2). The above items will be dealt in accordance with the current regulations.

Customs Examination

The Customs will examine the personal articles carried by outward passengers and verify whether the Declaration Form is accurate or not, and if there are any prohibited goods. Then, according to the examination results and related regulations, the Customs will determine the levy, duty free, detention, withdrawal or release of the baggage.

Prohibited and Restricted Articles

In accordance with the law of China, the following articles are prohibited to bring out of China:

1. All articles enumerated as articles prohibited from importation. See details here.

2. Manuscripts, printed matter, films, photographs, gramophone records, cinematographic films, loaded recording tapes and video-tapes, compacts discs (video and audio), storage media for computers and other articles which involve state secrets.

3. Valuable cultural relics and other relics prohibited from Exportation.

4. Endangered and precious rare animals and plants (including their specimens), their seeds and reproducing materials.

In accordance with the law of China, the following articles are restricted bring out from China:

(1). Gold, silver and other precious metals and their products.

(2). National currencies.

(3). Foreign currencies and negotiable securities of foreign currency.

(4). Radio transceiver and communication security machines.

(5). Precious Chinese herbal medicines.

(6). General cultural relics.

(7). Other articles restricted bring out by the Customs.

Important Notice:

1. In the Customs control area of entry and exit ports, cellphone, camera, video camera and video equipment shall not be used.

2. Chinese Medicine

For Chinese herbal medicines and Chinese patent medicines, for each passenger, the value of the medicine shall be limited to RMB150 for those who travel to Hong Kong and Macao; for those who travel to the foreign countries, the value of the medicine shall be limited to RMB300. Remember: musk and toad are prohibited to bring out of China.

3. Endangered Animals & Plants

In addition to the above regulation about endangered animals and plants,

No individual can bring rhino horn and tiger bone out of China. Products which have the words of Rhino Horn and Tiger Bone marked on the packaging shall be treated as rhino horn and tiger bone.

It's prohibited for individual to bring Asian ivory and its products out of China.

Chinese Medicine

China's current outbound tax refund policy for foreigners is mainly based on the Administrative Measures for Tax Refund for Shopping by Outbound Tourists (Trial). The specific details are as follows:

Definition Of Outbound Tourists

• Foreigners and compatriots from Hong Kong, Macao, and Taiwan who have continuously resided in China for no more than 183 days.

Tax-Refundable Items

Personal items purchased by outbound tourists themselves from tax refund stores and meeting tax refund conditions. This does NOT include:

• Items listed in the People's Republic of China Prohibited and Restricted Items for Import and Export;

• Items sold by tax refund stores that apply the value-added tax (VAT) exemption policy;

• Other items stipulated by the Ministry of Finance, the General Administration of Customs, and the State Taxation Administration.

Tax Refund Stores

Enterprises registered with the competent tax authority, where outbound tourists can apply for tax refunds for purchased items when departing. To become a tax refund store, an enterprise must:

• Have the qualification of a general VAT taxpayer;

• Have a tax credit rating of A, B, or M;

• Complete the registration process with the competent tax authority.

Application Conditions For Outbound Tax Refund

1. After purchasing tax-refundable items from a tax refund store, outbound tourists must obtain a tax refund application form from the store by presenting:

a. Valid identification documents;

b. VAT ordinary invoices (paper or electronic) for the purchased items.

2. The total amount of tax-refundable items purchased by the same outbound tourist on the same day at the same tax refund store must reach CNY 500 or more.

3. The purchase date of the items must:

a. Be within 183 days from the tourist's last entry date;

b. Not exceed 90 days from the departure date.

Tax Refund Rate And Calculation

• The refund amount is calculated based on the sales invoice amount (including VAT) of the tax-refundable items and the specified refund rate:

• Refundable VAT amount = sales invoice amount (including VAT) × refund rate

• Actual refund amount = refundable VAT amount - tax refund agency service fee

Tax Refund Process

1. When departing, outbound tourists must go through customs verification for the tax-refundable items.

2. Apply for the tax refund from a tax refund agency by submitting:

a. Valid identification documents;

b. The tax refund application form stamped and verified by customs.

3. The tax refund agency will process the refund after verifying the information:

a. For refunds exceeding CNY 20,000, the refund must be made via bank transfer;

b. For refunds not exceeding CNY 20,000, the tourist may choose cash refund or bank transfer.

Optimization Measures

• To further improve the policy, relevant authorities have introduced facilitation measures, including:

• Optimizing information systems for fully electronic tax refund processing to enhance efficiency in form issuance and verification;

• Relaxing the registration criteria for tax refund stores to include taxpayers with a tax credit rating of M;

• Streamlining the registration process for tax refund stores.