Current VAT refund rates – stable or not?

What is the current VAT refund rate in China for HS Code 854370? Would you expect the VAT refund rate to be stable or would you expect it to change? My company is considering assembling mechanical separator machinery in China both for the domestic Chinese market and for export out of China. Thanks for your assistance.


My in-house licensed customs broker got back to me sooner than expected. Here is the feedback.


  1. The HS code you gave me was a partial code, applicable to all the following full codes below.

    HS code :85437091, description: Metal or mine detectors
    HS code:85437092, description: High or intermediate frequency
    HS code:85437093, description: Electric fence energizers
    HS code:85437099, Other
    HS code:85437099.10, description: flying data recorders and reporters
    HS code:85437099.20, description: Exciters for wireless television broadcasting(having independently functions)
    HS code:85437099.30 ,description: Analog/digital converters(capable of being designed or improved for military uses or being designed to resist radiation)
    HS code:85437099.40description: Ion source for mass spectrograph
    HS code:85437099.50,description: Cipher machine(including telephone cipher machine, fax cipher machine)crypto cards
    HS code:85437099.90 description: other unlisted electrical equipment and devices, having independently functions
    HS code:85437099.901 description: other unlisted electrical equipment and devices, having independently functions
    HS code:85437099.902 description: Video switchers and image separators.

  2. Luckily the VAT rebate rate is the same for the whole group. And I am happy to tell you that as these industries are encouraged by the PRC government, the full 17% VAT rebate is applicable upon exportation assuming paperwork is in order and exporting party has correct licensing.
  3. Things are known to change on short notice in China, but as these products are important in the eyes of Beijing, in my professional opinion, I do not expect the rate to change in the next 12 months.

Wishing you successful China Sourcing!

Best Regards,

Mike Bellamy

China Operations Director, PassageMaker Sourcing Solutions

Chairman of the Advisory Board, China Sourcing Information Center

Author, The Essential Reference Guide to China Sourcing

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