Clothing Customs Clearance Service (Exporting from China)
The garment export process involves sequential procedures from pre-export registration to tax refund, with key steps including: Registration at the State Administration of Foreign Exchange (SAFE) → Electronic Port card processing → Obtaining foreign exchange verification certificates from SAFE → Obtaining export-specific invoices from the tax bureau (if needed) → Booking cargo space and shipping → Document preparation → Customs declaration → Foreign exchange settlement and verification → Tax refund.
Note: Foreign exchange settlement and tax refund require logging into dedicated systems, which will be provided by SAFE and the tax bureau respectively.
-
No export duties are imposed on garments; the export tax refund rate has been increased to 16%.
-
For knitted garments: Commodity inspection is not required unless they are children's clothing, vests, or underwear.
-
Special requirements by destination:
-
Japan: Needle detection is mandatory.
-
Europe and the US: A Certificate of Origin issued by the China Council for the Promotion of International Trade (CCPIT) is required.
-
Other countries: Generally, no special additional requirements.
If you have experience in other product trades, mastering garment quotation will be straightforward, as garment trade follows the same basic logic. There are multiple export quotation calculation methods, but the core思路 is consistent:
-
Tax Refund = Purchase Price (Excluding VAT) × Tax Refund Rate = [Purchase Price (Including VAT) / (1 + VAT Rate)] × Tax Refund Rate
-
Total Export Cost = Purchase Price (Including VAT) + Domestic Fees + Taxes - Tax Refund
-
Export Quotation (FOB Price) = Total Export Cost + Profit
Domestic Fees (Miscellaneous): Storage fees, domestic transportation fees, customs clearance fees, port authority fees, bank fees, etc.
Tax Refund via Agency Company: If garments are declared for export under an agency company’s name:
-
Foreign exchange is remitted to the agency’s account, which the agency will convert to RMB.
-
The agency will pay the product cost to the factory and transfer the profit to you (the client).
-
The factory issues a 17% VAT invoice; the agency handles the tax refund process and transfers the tax refund amount to you after receiving it.
Applicable to general taxpayers with self-operated import/export rights: VAT rate is 17%, tax refund rate is 13% (rates vary by product type).
-
Issue an export invoice based on the FOB price in USD when the goods are shipped and sold.
-
Foreign exchange must be collected within 90 days from the export date, and foreign exchange verification must be completed at SAFE.
-
Within 90 days from the export date, collect all required documents (foreign exchange verification certificate, customs declaration form, VAT invoice, export invoice), enter the data into the export tax refund declaration system, and conduct pre-declaration (optional) and formal declaration.
-
Electronic Port Operations:
-
After receiving the foreign exchange verification certificate and customs declaration form within the specified time, log in to the Electronic Port to submit the documents (both the verification certificate and customs declaration form need to be submitted separately).
-
After purchasing the foreign exchange verification certificate from SAFE, complete the port filing in the Electronic Port system.
Accounting Entries:
-
When Purchasing Goods:
Debit: Inventory Goods - X
Debit: Taxes Payable - Value-Added Tax (Input Tax) - X × 0.17
Credit: Accounts Payable - X × 1.17 -
When Exporting Goods:
Debit: Accounts Receivable - Y USD
Credit: Main Business Revenue - Y USD
Debit: Main Business Cost - X + (X × 0.04)
Credit: Inventory Goods - X
Credit: Taxes Payable - Value-Added Tax (Transfer-Out of Input Tax) - X × 0.04 (Note: 0.04 = 17% - 13%) -
Accruing Tax Refund:
Debit: Other Receivables - Export Tax Refund - X × 13%
Credit: Taxes Payable - Value-Added Tax (Export Tax Refund) - X × 13%
Foreign Exchange Settlement: Conducted at the bank’s exchange rate on the settlement date.
Note: The garment export tax refund rate is 13%, not 17% as previously mentioned.
General Procedures for Export Tax Refund Registration:
-
Submission of Relevant Certificates and Collection of Registration Forms:
Within 30 days after obtaining the document approving the operation of export product business and the business registration certificate issued by the administrative department for industry and commerce, the enterprise shall complete the export tax refund registration. -
Declaration and Acceptance of Tax Refund Registration:
After receiving the "Export Enterprise Tax Refund Registration Form", the enterprise shall fill it out in accordance with the form requirements, affix the company seal and signatures of relevant personnel, and submit it to the tax authority together with supporting documents (approval document for export product operation rights, business registration certificate, etc.). The tax authority will accept the registration after verifying the documents are correct. -
Issuance of Export Tax Refund Registration Certificate:
After receiving the enterprise’s formal application, the tax authority will verify the information, approve it in accordance with the prescribed procedures, and issue the "Export Tax Refund Registration Certificate" to the enterprise. -
Modification or Cancellation of Export Tax Refund Registration:
When the enterprise’s business status changes or tax refund policies are adjusted, the enterprise shall modify or cancel the tax refund registration as needed.
-
Customs declaration form: A document filled out by the import/export enterprise when declaring goods import/export to the customs for inspection and release.
-
Export sales invoice: A document issued by the export enterprise based on the sales contract with the foreign buyer; it is the main certificate for the buyer’s purchase and the basis for the export enterprise’s financial department to record export product sales revenue.
-
Purchase invoice: Used to confirm the supplier, product name, unit of measurement, quantity, and sales price of the export product, facilitating the calculation of purchase costs.
-
Foreign exchange settlement slip or foreign exchange receipt notice.
-
For self-exported or consigned exported self-manufactured products by production enterprises settled on a CIF basis: Export cargo waybill and export insurance policy shall also be attached.
-
Enterprises engaged in processing with imported materials and re-export business: Shall also submit the contract number and date of imported materials, name and quantity of imported materials, name of re-exported products, import material cost amount, and various tax amounts actually paid to the tax authority.
-
Product tax certificate.
-
Certificate of verified export foreign exchange collection.
-
Other materials related to export tax refund.
-
Special payment certificate for tax (export goods) and tax payment split certificate for export goods.
-
VAT special invoice (deduction copy).
-
Export goods foreign sales invoice.
-
Export goods sales ledger.
-
Export foreign exchange verification certificate (export tax refund copy).
-
Customs Declaration Form for Export Goods of the People’s Republic of China (special copy for export tax refund).
-
Summary Declaration Form for Export Tax Refund, Declaration Details Form for Export Tax Refund Purchase Vouchers, Declaration Details Form for Export Tax Refund Goods.
-
Preliminary Declaration Doubt Feedback Form.
-
Other materials required by the tax authority.
-
Whether the official seal or financial seal of the paying unit is affixed, whether the special tax seal of the tax collection department of the paying unit is affixed, and whether the bank (state treasury) seal is affixed.
-
Whether the statutory tax rate and collection rate are correctly filled in.
-
Whether the invoice number indicated on the payment certificate matches the number of the corresponding VAT special invoice (deduction copy).
-
Whether the product name, quantity, amount, and unit of measurement match those on the VAT special invoice.
-
Whether the taxpayer identification number and customs code on the special payment certificate for tax (export goods) are consistent with those indicated on the VAT special invoice and export goods declaration form.
-
A maximum of 5 VAT special invoice numbers can be filled in the sales invoice number column of one special payment certificate for (export goods).
-
According to electronic management requirements, a special payment certificate can have a maximum of 3 columns.
-
If there is an error in any item listed on the payment certificate, it shall not be modified on the original payment certificate; a correction certificate shall be issued by the tax authority that issued the payment certificate.
-
Whether the amount on the split certificate is correctly filled in.
-
Other requirements specified by the State Taxation Administration and provincial tax bureaus.
-
Whether the special invoice seal is affixed.
-
Whether computer-printed VAT special invoices have passed anti-counterfeiting tax control authentication (except for those without a password area).
-
Whether the name of the selling unit is consistent with the supplier on the payment certificate.
-
For goods purchased from manufacturers in areas with high tax fraud risks (Shanwei City, Guangdong: Lufeng, Luhe, Haifeng; Shantou City, Guangdong: Chaoyang, Chenghai, Nanao; Jieyang City, Guangdong: Jiedong, Jiexi, Puning; Chaozhou City, Guangdong: Chao’an, Raoping), whether separate declaration and verification letters are submitted.
-
Handwritten VAT special invoices issued after July 1, 2003, are not accepted unless they are issued by the tax authority on behalf of small-scale taxpayers.
-
Other requirements specified by the State Taxation Administration and provincial tax bureaus.
-
Whether the signature or seal of the legal representative of the export enterprise is affixed.
-
Whether the goods specified on the invoice are consistent with those on the customs declaration form.
-
Other contents that shall comply with foreign trade financial regulations.
-
Whether the financial seal or official seal of the export enterprise is affixed.
-
Whether the foreign currency amount indicated on the declared sales ledger is consistent with the foreign currency amount on the export invoice, verification certificate, and customs declaration form.
-
Other contents that shall comply with foreign trade financial regulations and tax laws.
-
Whether the "Verified by Hubei Branch of the State Administration of Foreign Exchange" seal of the foreign exchange management department is affixed.
-
Whether it is consistent with the verification certificate number indicated on the customs declaration form.
-
Whether the manufacturer or consignor indicated on the customs declaration form is consistent with the supplier on the payment certificate or split certificate.
-
Whether the customs release seal is affixed.
-
Whether the product name and quantity indicated on the customs declaration form are consistent with those on the payment certificate/split certificate and special invoice.
-
Other contents that shall comply with export goods declaration management requirements.
-
Whether the correlation number is correctly filled in.
-
Whether the data is accurately filled in according to requirements and consistent with the attached original documents.
-
Whether the seals and signatures on the "Summary Declaration Form" are complete.
-
Whether the data in the "Summary Form and Details Forms" is consistent with the electronic data in the declaration floppy disk.
-
Other contents that shall comply with export tax refund electronic management requirements.
Declaration Frequency: Export enterprises shall declare once a month before the 15th (except for bid-winning business, agricultural and sideline products, and verification letter feedback cases).
Required Export Tax Refund Declaration Forms for Foreign Trade Enterprises:
-
Form A: Declaration Details Form for Export Tax Refund Purchase Vouchers (reflects the tax payment status of purchased export goods).
-
Form B: Declaration Details Form for Export Tax Refund Goods (reflects the customs declaration, foreign exchange verification, etc., of export goods).
-
Form C: Summary Declaration Form for Foreign Trade Enterprise Export Tax Refund (reflects the comprehensive summary of materials, forms, tax amounts, commodities, and documents declared this time; it is also the base form for the tax refund department to review and sign).
-
Form D: Batch Declaration Form for Export Tax Refund Purchases.
Application for Batch Declaration Form for Export Tax Refund Purchases:
Enterprises applying for the Batch Declaration Form for Export Tax Refund Purchases shall provide the following materials:
-
Original VAT special payment certificates for the export goods to be declared and the corresponding original VAT special invoices.
-
When applying for the form, the supplier’s name shall be filled in the "Remarks" column of the form.
Guangzhou Panyue International Trade Co., Ltd. provides comprehensive services for garment exports, including:
-
Guidance on pre-export registration (SAFE, Electronic Port) to ensure compliance with procedural requirements.
-
Pre-review of export inspection documents and assistance in obtaining Certificates of Origin (CCPIT) for Europe/US shipments.
-
Tax refund calculation and document organization (VAT invoice verification, customs declaration form review) to avoid declaration errors.
-
Coordination with customs and tax authorities to streamline customs clearance and tax refund processes.
-
Advisory services on foreign exchange settlement and tax refund policy updates.
With our expertise in garment export regulations and tax refund procedures, we help clients navigate complex formalities, minimize delays, and ensure efficient, compliant export operations.
One-on-One Service
Fast Processing Cycle
Twenty Years of Import & Export Experience
A Large Number of Successful Cases
Online Consultation