No VAT For Exports Returned To China, Finance Ministry Says

Chinese products that were exported this year and later returned to the country won't be subject to import duties and value-added taxes upon reentry, China's Ministry of Finance announced, citing the "force majeure" of the novel coronavirus pandemic.

Companies that exported goods at any point in 2020 and imported them back within a year due to the pandemic won't have to pay import duties, VAT or a consumption tax, according to a Monday statement. Companies that exported goods and later imported them back will also get a refund for any export duties, the Ministry of Finance said.

Monday's announcement came as China pursues tax breaks and other measures designed to support the country's economy during the pandemic. Several measures were outlined in May by Li Keqiang, premier of the State Council — the country's chief administrative authority — including new tax cuts worth 4.5 trillion yuan ($674 billion).  

--Additional reporting by Joseph Boris. Editing by Neil Cohen.

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