Explanation of China’s New Rules on “Buyer’s Export” Effective October 1, 2025

Dear valued international buyers,

I’m here to share critical updates on China’s export policy that directly impacts your procurement in China. Starting from October 1, 2025, the State Taxation Administration’s Announcement No.17 will fully take effect, marking the complete end of the traditional "buyer’s export" (export with borrowed qualifications) model. This is not a temporary adjustment but a long-term regulatory trend—China is strengthening oversight of cross-border trade to ensure tax compliance and fair market order.

First, let’s clarify what "buyer’s export" is: it’s when you or your supplier uses a third party’s export qualifications (such as borrowing another company’s customs declaration documents) to complete export procedures. Under the new rules, this practice is no longer feasible. The core requirement is that customs declaration must include the real owner of the goods, and export agents must submit a detailed report on the actual consignor to tax authorities. If false information is provided, both the agent and the actual buyer will face severe consequences.

The seriousness of non-compliance cannot be overstated:

1. Financial Risks: You may be required to pay back taxes (including VAT and corporate income tax) as domestic sales, plus heavy fines up to 5 times the unpaid tax. For high-value goods, this could mean huge financial losses.

2. Legal Liabilities: In severe cases, it may constitute criminal offenses such as tax evasion or fraudulently obtaining export tax rebates, leading to criminal prosecution and even imprisonment according to Chinese law.

3. Supply Chain Disruption: Non-compliant shipments may be detained by customs, causing delays in delivery. Your cooperative suppliers could also be penalized with suspended export qualifications, disrupting your long-term procurement plans.

To adapt to this new policy, here are three compliant options for your procurement:

1. Cooperate with Qualified Suppliers: Choose suppliers with formal export licenses who can declare customs with their own qualifications and provide complete tax and customs documents.

2. Use Export Agents: Entrust reputable export agencies with more than 5 years of experience to handle customs clearance, tax declaration, and foreign exchange settlement. They can also advance tax rebates for you.

3. 1039 Market Procurement Model: For small-value (≤USD150,000 per shipment) and general goods without input invoices, use the designated market procurement model (e.g., in Yiwu, Shenzhen South China City) for tax-compliant export.

Please note that this policy applies to all export goods, including consumer goods, machinery, and raw materials. Early compliance will help you avoid unnecessary risks and ensure smooth procurement in China.

If you need help verifying your supplier’s export qualifications or selecting a reliable export agent, feel free to contact us—we’re here to support your compliant procurement journey in China.