With the global supply chain adjustment and the wave of domestic production, more and more purchasers and manufacturers are considering whether they can enjoy export tax rebates (value-added tax rebates) in China if they use domestic connectors (or produce and export domestic connectors). This article, combined with the product line of international distributor SP International and China's current and historical tax rebate policies, interprets the key points for judgment and practical suggestions to help purchasing and foreign trade colleagues make compliance and cost estimation.
Background of SP International (key points related to products)●SP International (S-P International) is an international distributor/agent and inventory supplier that has been supplying passive and active components, connectors, and cable assemblies to the electronics industry for a long time. Its website and product catalog show that it has a variety of connectors, cable assemblies, and the ability to provide matching services for industrial/communication/automotive/equipment integrators. The company has both its own product content and acts as an agent for several connector manufacturers (such as DEGSON, Techspan, etc.).
For users looking for "domestic alternatives," SP International's product catalog can serve as a benchmark (product specifications, series, weather and electrical parameters) to confirm whether domestic products meet the same technical requirements. If replacing imported brands is desired, it is recommended to compare item by item in terms of specifications, lifespan tests (number of plug-and-play cycles, salt spray resistance, insulation resistance, etc.) and certifications (UL, CE, IP, etc.).
Export tax rebate (Value-Added Tax rebate) general rules and judgment logic for "connectors" goodsThe first judgment principle: Check if the "commodity code (HS Code/Tariff Code)" used on the customs declaration is in the current tax refund item list, and the corresponding tax refund rate (or whether it has been cancelled).
China's export tax refund is implemented based on the "tax number (HS code) of the exported goods" and the tax refund list and tax refund rate issued by the financial/tax department. Connector products usually correspond to several tax numbers related to electrical/optical connector; if the corresponding tax number is on the tax refund table and there is a tax refund rate, tax refund can be applied for according to the regulations; otherwise, it may be cancelled or lose the qualification for tax refund.
Practical impact points (points to note):
1. Original material tax refund/cancellation items: If the key raw materials of connectors (such as copper materials, aluminum materials, electroplating materials) are cancelled for tax refund in foreign trade by the financial and tax department during adjustment, the cost of the whole machine or finished products will increase. However, this does not necessarily mean that the tax refund qualification of the finished product (connector) itself is cancelled — it still depends on whether the HS code of the finished product retains the tax refund rate. In recent years, China has adjusted or cancelled the tax refund policy for some metal raw materials, and connector manufacturers need to pay attention to whether they are affected by the adjustment of raw material tax refunds (indirect cost increase).
The adjustment of tax refund rates and catalog update: Tax refund rates are subject to periodic adjustments (increased, decreased, or cancelled) in line with fiscal and tax policies. Export enterprises should refer to the latest announcements and tax refund goods catalogs issued by the Ministry of Finance, the State Administration of Taxation, or local tax authorities, and correctly match the corresponding tax codes and tax refund rates during customs declaration and tax refund application procedures.
Declaration and Compliance of Documents: The application for export tax refund requires enterprises to upload accurate export declaration forms, contracts, invoices, and origin/production certificates in the electronic port or tax refund system. The system's requirements for the compliance of enterprise information and procedures, such as binding with electronic signatures and IC cards, are relatively high. If it is an "indigenous substitution" new product for export, it is recommended to communicate and confirm the tax number and the materials to be submitted with the local tax authority before the first application.
Combining SP International's product line, practical operational suggestions for enterprises in terms of domestic substitution and export tax refund.1. Confirm the HS code of the finished product and consult the tax authority supervisor: For the domestically produced substitute connector to be exported, the correct HS code must be determined by the customs broker or tax advisor before customs declaration. Confirm the tax refund rate (or whether it has been cancelled) of this code in the latest tax refund catalog. (Key evidence: export customs declaration and tax announcement.)
To meet the technical specifications of SP International, prepare a compliance inspection report: If the target customer or market is accustomed to using imported brands such as SP International, the domestic substitute products should prepare complete quality inspection and certification documents (such as electrical performance, mechanical reliability, IP/Protection Level, material compliance, etc.) to facilitate smooth passage in the export record and customer acceptance process. The catalog page of SP International can be used as a specification reference.
3. Pay attention to the cost transmission brought by raw material policies: if the tax refund for key raw materials is cancelled or the tax refund rate is reduced (for example, certain metals or components used to enjoy tax refunds but adjusted), enterprises should seize the timing of inventory/purchase or optimize the BOM to mitigate the cost impact of the tax rate adjustment. Recent media reports have shown that China has indeed adjusted the tax refunds for some metal materials and components, and relevant enterprises should closely monitor fiscal/tax announcements.
Establish a long-term communication mechanism with foreign trade and tax consultants: export tax refund policies may change, it is recommended to establish a fixed communication with experienced customs brokers and tax consultants, especially when new products are exported for the first time or when the HS code is changed, to confirm with the local tax bureau in advance to avoid the tax refund application being rejected or delayed.
Four, case-based explanation (hypothetical situations for understanding)Assuming Factory A produces an M12 sensor connector for industrial field buses (a domestic alternative to the M12 series represented by SP International) and plans to export it to Europe and America:
●Step 1: Confirm the HS code for this M12 finished product with the customs broker.
● Step 2: Query the tax refund rate of the HS code in the latest export tax refund goods catalog (or whether it has been cancelled).
●Step 3: Prepare the necessary export documents (commercial invoice, packing list, contract, origin certificate if needed, inspection report, etc.), and declare them according to regulations in the electronic port or tax refund system.
If the HS code is currently in the tax refund catalog, tax refunds can be processed according to the provisions of the announcement; if it is not in the catalog, tax refunds cannot be claimed, and this point should be considered when making quotations and cost estimates. The policy and system usage details mentioned above can serve as a reference for operations.
Whether to enjoy export tax refund is not determined by the single attribute of "domestic or imported brand", but by whether the HS code (tax number) of the export commodity is listed in the tax refund commodity catalog issued by the Ministry of Finance or the State Administration of Taxation and the corresponding tax refund rate. If the tax number of the domestically produced substitute connector is listed in the tax refund catalog and meets the requirements of the declaration materials, it can enjoy tax refund; otherwise, it cannot.
For enterprises planning to replace domestic products and export, it is essential to pre-determine the tax number, prepare compliant products and testing documents, and communicate with customs and tax consultants. At the same time, consider the impact of changes in the tax refund policy for raw materials on costs. In recent years (including adjustments by the end of 2024), the tax refund rate or catalog for some metal and electromechanical products has been adjusted. Enterprises should take the latest公告 as the standard and conduct sensitivity analysis.
Action Recommendations (Marketing/Product Landing Points for Independent Websites)Place on the product promotion page simultaneously: a) Product specification table for comparison with SP International's products, b) Inspection reports and sample images of our domestic substitute products, c) Commitment to value-added services for export tax refund compliance (such as: tax refund consultant matching, customs declaration support). You can add a "tax refund consultation" form on the product page to capture purchasing leads with export needs.
If you are interested in the domestic substitute products for SP International brand connectors or have procurement needs, or if you have production or sales channels for these brand connector domestic substitutes and wish to engage in in-depth cooperation or communication, please contact via the following contact information:
Manager Zhang (18665383950, same WeChat number)Contact us, we look forward to working with more industry partners.
