Chongqing - On June 8, Chongqing's Yongchuan Customs District processed the first shipment of recycled pulp imported by Chongqing Lee&Man Paper Manufacturing Ltd. under the newly introduced inland river freight deduction policy in the Chongqing port area. 

Issued by the General Administration of Customs on May 30, the policy applies to both Chinese and foreign enterprises and establishes a clear guideline for deducting the cost of inland river freight from the declared customs value at customs offices across the country. 

Under this policy, customs authorities can exclude inland river freight when calculating the taxable value of imported goods based on the declaration made by the importing enterprises.

Customs officers instructed enterprises on inland river freight deduction declaration operations. (Photo/Chongqing Customs District)

According to the head of Chongqing Lee&Man Paper Manufacturing Ltd., since the customs deducted 32,000 yuan from the taxable value of their goods as inland river freight, this resulted in a tax payment reduction of 4,143 yuan and tangible benefits for the company.

The head of the Chongqing Customs District said enterprises could calculate the cost of inland river freight by using the applicable tariff rates for goods imported through the inland waterway transport system from coastal ports. They can then request a tax deduction from customs based on the recalculated freight value. 

This implementation is expected to significantly impact operating costs for enterprises in Chongqing, with an estimated tax reduction of over 20 million yuan anticipated during the remaining seven months of this year.

Moving forward, Chongqing Customs District is committed to intensifying policy promotion to enable a broader range of foreign trade companies to benefit from the new measure, fostering trade stability and improving regional trade quality.