Chongqing- In order to support the export commodities for domestic sales of enterprises, Chongqing Jiangjin Comprehensive Bonded Zone began policies for general taxpayers. Enterprises (most of them belong to foreign-funded enterprises or joint ventures) in the zone can receive input deductions as enterprises outside the zone, which allows enterprises to issue special VAT invoices to domestic enterprises and to conduct both domestic and export sales.

Chongqing began to implement the pilot policy of general taxpayers in special customs supervision areas in 2016, and the implementation region is mainly concentrated in Xiyong Comprehensive Bonded Zone. Since COVID-19, the implementation region of the policy will be expanded to Jiangjin Comprehensive Bonded Zone, in order to support export enterprises to switch to domestic sales.

In the past, if enterprises in the comprehensive bonded zone were to engage in domestic and export sales at the same time, they must register two enterprises. Meanwhile, enterprises inside the zone could neither deduct input VAT invoices nor issue special VAT invoices, compared with general taxpayer enterprises outside the comprehensive bonded zone. This virtually becomes a barrier for those enterprises to develop the market in China. Under the COVID-19 situation, the newly implemented pilot policy for general taxpayers in special customs supervision areas provides a platform and opportunities for export-oriented enterprises to take full advantage of the market in China. Besides, it is also more convenient for enterprises to handle domestic business and have greatly saved capital costs as well.

"In 2019, our company's domestic sales amounted was more than RMB 23 million, accounting for about 20% of total sales. With the support of general taxpayer pilot policies, we keep expanding domestic customers. As of the end of June this year, our domestic sales totaled more than RMB 10 million. In addition, it is expected to be more in the second half of the year," said Wu Haiqing, the financial manager of CCL Design (Chongqing), located in Xiyong Comprehensive Bonded Zone. With long-term cooperation with Dell, Lenovo, and other companies, CCL Design (Chongqing) mainly produces and sells plastic labels. Their products are mainly exported to countries and regions along with the Belt and Road.

According to data, as of the end of June this year, the total sales revenue of the pilot enterprises of general taxpayers in the special supervision area of ​​Chongqing Customs totaled RMB 682 million, of which the cumulative domestic sales revenue was RMB 422 million, accounting for 60% of the total sales revenue.