In recent developments, Qingdao Vital Grain Agricultural Development Co., Ltd. successfully facilitated the import of 1,965t of yellow peas through Erenhot Port, following the thorough examination and taxation by Linyi Customs under the jurisdiction of Qingdao Customs. Linyi Customs provided a deduction of RMB 408,000 on the domestic freight charges for this shipment, enabling the company to save RMB 59,000 in taxes.
The "Tax Deduction for Domestic Freight of China-Europe Railway Express" policy ensures tax exemption on inland freight expenses for goods transported via container block trains. This is an innovative measure implemented by the General Administration of Customs (GACC) to reduce corporate tax burdens and serve the development of China-Europe Railway Express.
For shipments with freight costs covered by overseas partners, domestic consignees often lack the necessary freight documentation. How can they benefit from freight deductions?
To address this bottleneck, Linyi Customs has repeatedly brought together consignees, freight agents, railway platform operators, and customs declaration brokers for in-depth discussions. They pioneered a system where freight forwarders submit records of actual freight payments, which are then proportionately distributed based on the domestic and international operating costs of the railway platform. This strategy effectively resolved the issue of unavailable freight documents for local consignees, enabling them to benefit from freight deductions successfully.
"This shipment of peas was handled by a foreign transporter, and we didn't have the requisite freight documentation, initially making us believe we couldn't leverage the deduction benefits," stated Sun Shuai, the Customs Manager of Qingdao Vital Grain Agricultural Development Co., Ltd. "Customs was aligned with our needs and facilitated a communication platform and freight forwarding solutions, ultimately saving us nearly RMB 60,000 in taxes without any extra effort on our part."
As of now, Linyi Customs has offset RMB 20.5516 million in domestic freight charges for imported goods via China-Europe Railway Express trains, lowering the tax burden for enterprises by RMB 2.5788 million. This has attracted substantial imports of goods, such as plate materials, kraft paper, and animal feed, which are well-suited for rail transport. The return trips reached 172 trains and 23,400 TEUs, marking a year-on-year increase of 31.3% and 43.25% respectively.
Linyi Customs is committed to continually enhancing the business environment by intensifying industrial research and accurately addressing corporate needs. This approach aims to effectively assist foreign trade firms in leveraging customs preferential policies, thereby fostering the sustainable and healthy growth of the China-Europe Railway Express train return business. (Article by Li Changhong, Liu Qinglin, and Liu Shiquan)
Disclaimer：The above content is translated from Chinese version of GACC. The GACC version shall prevail.