Goods issued to sell, back to pay taxes - this used to be the cross-border sellers the most headache "double loss". But now, the new policy introduced by the state, directly help sellers to return the cost of transportation down.

In February 2026, the Ministry of Finance, the General Administration of Customs, and the State Administration of Taxation jointly issued Announcement No. 16 of 2026, which extended the tax incentives for cross-border e-commerce exports of returned goods to December 31, 2027. This seemingly short notice means real savings for cross-border sellers.

Today we're going to break down this policy and help you figure out exactly how much you're going to save and what you can do to secure that discount.

I. The core of the policy: which returned goods can be exempted from tax?

The core of Notice 16 is not complicated, but there are a few key thresholds that must be figured out::

Applicable time: Merchandise declared for export between January 1, 2026 and December 31, 2027

Applicable regulatory codes: 1210 (bonded e-commerce), 9610 (cross-border e-commerce retail export), 9710 (cross-border e-commerce B2B direct export), 9810 (cross-border e-commerce export overseas warehouse)

Time frame for return shipments:: Returned for re-entry in their original condition within 6 months from the date of export. Note in particular that for 1210 merchandise, the six-month period is counted from the "date of departure from the zone", not from the time of entry into the zone.The

Reason for application: Returned shipments for reasons of demurrage or return

Excluded commodities: Food items are not eligible for this offer

Applicable product status: It must be "returned in its original condition" - the smallest merchandise form is essentially the same as when it was originally exported, with no additional accessories or parts, processing or modification.The

As to what is "original condition", the announcement gives a relatively loose interpretation: after unpacking, inspection (chemical), installation, debugging and other operations that do not change the core form and function of the goods can still be considered as "original condition". In principle, the goods should not have been used, but if only after the trial can be found to be poor quality, or can be proved to be returned by the customer after the trial, can also be regarded as compliant with the requirements.The

Second, how much can sellers save? Let's do the math.

Scenario 1: Return of high-tariff goods

Suppose you export a shipment of furniture to the United States that needs to be returned due to slow sales. The shipment is exported with a declared value of $100,000, and the import tariff rate is assumed to be 10%.

• When there is no preferential policy: return to the country is subject to customs duty of $10,000 + import VAT (calculated at 13%) of $13,000, totaling $23,000
• After enjoying the preferential policies: tariffs and import VAT are completely exempted, directly saving 23,000 USD

Scenario 2: Return of goods for which export duties have been paid

If the goods you are exporting belong to a category subject to export duties (e.g. some resource products), export duties have been paid at the time of export. When you are eligible to return the goods, the export tariffs collected will be refunded.The

Scenario 3: Processing of export tax refunds

This is the easiest place to step into the pits. If your goods have been exported with an export tax refund, you must first pay the refunded tax in accordance with the current regulations before applying for a return of the goods for tax exemption. After the payment is completed, import tax exemption and export tariff refund procedures can only be handled with the "Certificate of Export Goods for which Taxes Have Been Repaid/Not Yet Refunded" issued by the competent tax authoritiesThe

Enterprise Caiying is deeply engaged in cross-border e-commerce fiscal and tax compliance services, and can provide you with professional support such as consulting on tax treatment of returned goods, building compliance processes, and training on policy interpretation. If you have any questions about Announcement 16, or want to do a comprehensive physical examination of your business for return shipment compliance, welcome to add customer service WeChat: qcygscszk, or call the cell phone: 18676749275. our industry experts will provide you with one-on-one answers.

III. Practical guide: how to apply for a successful pass?

Material preparation is key

Announcement No. 16 clearly requires that enterprises applying for preferential treatment need to submit relevant supporting materials and bear legal responsibility for the authenticity of the materialsThe

basic material::

• Export commodity declaration list or export customs declaration (proving that the commodity is under the designated regulatory code, exported within the specified time and returned for import)
• Documentation of the reason for the return (demonstrating that the reason for the return is demurrage or return of goods)

Differentiated Materials::

• Returned shipments due to slow-moving goods: Provide a "self-declaration" from the enterprise that the merchandise has been returned because it is unsold. No third-party certification is required, but Customs will conduct random checks to verify that the declaration is true.
• Returned shipments due to returns: Provide materials such as return records (e.g., return records on e-commerce platforms or rejection records) and return agreements.

Supplementary material:

• If you have paid the export tax refund, you need to provide the "Certificate of Export Goods for which Taxes have been Repaid / Not Refunded".
• If you apply for refund of export duties, you need to provide proof of payment of export duties.
• If there are operations such as unpacking, inspection, commissioning, etc., keep relevant records for verification.

workflow

1. Confirmation of commodity compliance with policy conditions (time, code, reason, status)
2. If you have already applied for the export tax refund, first apply to the competent tax authorities for the payment of the tax refund, and obtain the "Certificate of Exported Goods for which Taxes have been Compensated/Not Refunded".
3. Prepare a complete return declaration
4. Declare and apply for tax incentives at customs when goods are returned to the country of entry.
5. Import duties and taxes will be exempted after Customs' approval; if it involves paid export duties, refund procedures will be handled.

IV. The three "pits" that must be avoided

Pit 1: Returning shipments more than 6 months old

This is the most common mistake. 6 months from the date of export and 1210 from the date of departure from the zone.. More than one day, the discount eligibility is gone. It is recommended that a special management process for returned goods be established to provide advance warning of goods that are about to expire.

Pit 2: Goods not in "original" condition

Goods that have been processed or modified at the time of their return to the country, or that show obvious signs of use (and cannot be proved to have been tried as a result of a quality problem), may be deemed ineligible by Customs.. Be sure to check the status of the merchandise before return shipment and keep the unpacking and inspection records.

Pit 3: Incomplete or false materials

Incomplete documents will lead to failure of the audit; submitting false documents may face fines, tax recovery or even more serious legal consequences.(c) The policy is being implemented. Materials are filed and retained for a period not less than the period of implementation of the policy and related regulations.

V. Suggestions for Corporate Compliance

1. Regulating business processes

Establishment of a special management process for returned commodities, clarifying the responsible departments and operation standards for each link of export declaration, return application, material preparation, tax and fee reimbursement, and preference application, etc.The

2. Enhanced materials management

Classify and file export declarations, declaration lists, return records, return agreements, self-declarations, tax payment certificates, and certificates of tax reimbursement/non-refund for exported goods, etc., and keep them for reference.The

3. Strengthening external communication

When encountering doubts in the process of policy implementation (e.g. identification of "return in original condition", preparation of materials, process of tax reimbursement, etc.), consult and confirm with the competent customs and tax authorities in a timely manner, so as to avoid violation of the law due to misunderstanding.The

The state has maintained a consistent supportive attitude towards cross-border e-commerce as a new industry, but the policy design of limiting the time and scope also reflects the prudent attitude of adjusting while experimenting. Enterprises should not only maximize the dividends from tax incentives, but also keep the bottom line of complying with the operation in order to achieve sustainable and healthy development in the fierce competition.

Enterprise Caiying is deeply engaged in cross-border e-commerce fiscal and tax compliance services, and can provide you with professional support such as consulting on tax treatment of returned goods, building compliance processes, and training on policy interpretation. If you have any questions about Announcement 16, or want to do a comprehensive physical examination of your business for return shipment compliance, welcome to add customer service WeChat: qcygscszk, or call the cell phone: 18676749275. our industry experts will provide you with one-on-one answers.