Core conclusions:Three things were implemented within one day on October 12: the value-added tax export rebate rate for new energy vehicles will be reduced from 13% to 9% from April 1, 2027, and the value-added tax export rebate for e-cigarette equipment and other products will be cancelled on the same day; The 140th Canton Fair will be held in three phases from October 15 to November 4, with an exhibition area of approximately 1.55 million square meters and more than 30,000 exhibitors; On the same day, the Ministry of Commerce answered reporters 'questions on the China-EU automobile trade consultations, clarifying that hybrid vehicle arrangements follow the three principles of respect for facts, non-discrimination, and compliance. For factories manufacturing new energy vehicles and supporting parts, orders declared before March 31, 2027 will still be executed at 13%. These more than five months are a clear window period.
1. Export tax refund adjustment: 13% is reduced to 9%, based on the export date on the customs declaration form
The Ministry of Finance and the State Administration of Taxation issued an announcement on adjusting the export tax refund policy for some products on October 12. The four contents need to be read clearly one by one. Starting from April 1, 2027, the value-added tax export rebate rate for new energy vehicles will be reduced from 13% to 9%. For the specific product list, see the annex to the announcement; starting from April 1, 2027, e-cigarette equipment and other products will be cancelled. VAT export tax refund; for products subject to consumption tax among the above products, the export consumption tax policy will not be adjusted, and the consumption tax refund (exemption) policy will continue to apply; The export tax refund rate applicable to the products listed in the announcement is defined by the export date indicated in the export goods declaration form.
The last sentence is the most operational sentence in this announcement. It changed the judgment criterion from "when to declare a tax refund" to "when to declare a declaration for export." As long as the export date stated on the customs declaration is before March 31, 2027 (inclusive), even if the tax refund declaration occurs after April, it will still be calculated at 13%. For example: for a US$2 million order for new energy accessories, the difference between 13% and 9% is 4 percentage points, and the difference between the amount is US$80,000. This also explains why supporting parts companies will receive customers 'requests to schedule production in advance in the first quarter of next year.
To supply wiring harnesses, structural parts, interior and exterior decorations, battery trays, and charging module factories to complete vehicle factories, two things need to be done: First, re-check the production capacity and delivery schedule for the first quarter of 2027 to see if they can undertake the production schedule that moves forward; Second, make a quotation calculation based on the 9% tax refund rate first, and absorb the difference of 4 percentage points internally in advance, rather than waiting for customers to lower the price. For factories that do not involve new energy categories, this adjustment will not affect your export tax refund rate.
2. The 140th Canton Fair: opens on October 15, with three themes and two renewal periods
The Ministry of Commerce and Canton Fair officials have announced the complete schedule of the 140th session: the first phase will be from October 15 to 19, 2026, focusing on "advanced manufacturing", covering household appliances, consumer electronics and information products, industrial automation and intelligent manufacturing, processing machinery and equipment, general machinery and mechanical basic components, engineering machinery, agricultural machinery, new energy vehicles and smart travel, new energy, lighting products, hardware tools; The second phase will be from October 23 to 27, focusing on "Quality Home", covering daily ceramics, kitchen utensils, household items, glass crafts, home decorations, garden supplies, holiday supplies, gifts and gifts, watch glasses, construction and decoration materials, bathroom equipment, furniture; The third issue runs from October 31 to November 4, focusing on "Better Life" and covers toys, pregnant and infant products, clothing, shoes, luggage, home textiles, carpets and tapestries, office stationery, medical and health products and medical equipment, food, sports and tourism leisure products, personal care appliances, bathroom products, and pet products.
The two exchange periods are from October 20 to 22 and October 28 to 30 respectively. The exhibition hall will not be open to the public for negotiations during these days and must be avoided when making appointments with customers. In terms of scale, the total area of this exhibition is about 1.55 million square meters, with more than 30,000 exhibitors, including about 2800 brand companies, and high-quality companies such as high-tech, individual champions, and specialization and innovation account for about one-third; In the last session (139th session), there were 314,000 overseas buyers from 220 countries and regions. This year, the service robot zone, the fashion jewelry zone and the smart medical zone will continue to be set up. The online exhibitions and offline exhibitions will have the same themes and operate normally throughout the year.
3. China-EU Automobile Trade: Three Principles for Hybrid Vehicle Negotiation
On October 12, the spokesperson of the Ministry of Commerce answered reporters 'questions on China-EU consultations on hybrid vehicles and electric vehicles, and proposed three principles. Respect the facts: The EU will import 107,000 hybrid vehicles from China in 2024 and increase to 302,000 in 2025. The consultation results should be arranged upwards on the basis of 2025; non-discrimination: China's quota arrangements should not be lower than any other import source; Compliance: The consultation results should comply with World Trade Organization rules. In terms of electric vehicles, China and the EU achieved a soft landing in the countervailing case in January this year, and the EU continues to promote corporate price commitments and related review procedures.
For auto parts and complete vehicle supporting factories in the European market, the meaning of this matter is very specific: the hybrid and plug-in and hybrid channel has increased from 107,000 to 302,000 in two years, nearly tripled, and it is operated under the framework of price commitments and reviews. This means that suppliers need to prepare not for a uniform tax rate, but traceable cost information, clear origin information and local service capabilities. Factories with complete information have completely different negotiation positions in the window brought by such consultations.
| matters | time node | What the factory needs to do |
|---|---|---|
| New energy vehicle export tax refund rate reduced from 13% to 9% | Starting from April 1, 2027, it will be defined by the export date indicated in the customs declaration | Orders declared before March 31, 2027 will still be subject to 13%, so the production scheduling and delivery arrangements for the first quarter will be reviewed accordingly |
| Cancel export tax rebates for e-cigarette equipment and other products | Starting from April 1, 2027 | If related categories and supporting parts are involved, adjust the quotation model in advance and communicate with customers |
| The 140th QHG 0Q | The first phase is from October 15 to 19, the second phase is from October 23 to 27, and the third phase is from October 31 to November 4 | Select the period according to the product theme, and determine the pre-registered buyer list and sample list before the opening |
4. Common questions
1. Will the reduction in export tax refund rate only affect entire vehicle factories?
The direct impact falls on the export of complete new energy vehicles, but it will be transmitted along the supply chain. The wiring harnesses, structural parts, interior and exterior decoration, charging modules, and battery tray factories that supply the entire vehicle factory will encounter customers moving forward in production schedules or renegotiating order prices in the first quarter of 2027. It is more proactive to calculate the quotation in advance based on the 9% tax refund rate than waiting for customers to come to reduce the price. For factories that are not in the new energy supply chain, this adjustment has nothing to do with your tax refund rate.
2. Can I get buyer information without going to the Canton Fair site?
You can get some, but you can't get a face-to-face pre-registration invitation. Pre-registration for overseas buyers on Canton Fair is open all year round, and buyers can apply for free at airports, stations, ports, designated hotels and Hong Kong offices; online exhibitions and offline exhibitions have the same themes and operate normally throughout the year. This means that even if you don't set up a stall, you can first find a target buyer on the official website and APP, issue invitations, and make an appointment to meet in Guangzhou. Putting the action two weeks before the opening is much more effective than handing over the business card when you arrive at the scene.
3. What does China-EU consultations mean for building factories in the European market?
This means that the channel for hybrid categories has changed from a tax rate issue to a data issue. In 2024, the EU will import 107,000 hybrid vehicles from China and 302,000 in 2025. They will operate under the framework of price commitment and review. Suppliers must prepare traceable cost structures, origin information and local service capabilities. The time saved by factories with complete information in the customer review process is often more valuable than the money saved by price negotiations.
Qihang Zhilian Foreign Trade Research Institute·Let China's intelligent manufacturing industry set sail to sea·Tel: 180-0327-6609
