Recently, Guangdong Sinomax Housewares Co., Ltd. imported a batch of “silicone surfactants” and went through declaration formalities by means of lump-sum taxation. Since on-site tax payment formalities were reduced, the Company only took 15 seconds to go through declaration and examination, and then was released on a letter of guarantee.

Lump-sum taxation is a new taxation model introduced by the General Administration of Customs in July for implementation among nationwide customs districts. Under the lump-sum taxation model, a customs district will collect taxes in a lump sum on goods imported and exported by an approved eligible import and export taxpayer in batches within a certain period. With a letter of guarantee issued by commercial banks, the Customs will not print tax bill for separate taxation during clearance of goods. Instead, it will release goods immediately after deducting the amount of tax payable from credit line of the guarantee. The enterprise only has to pay all tax within the first 5 working days of the following month in a centralized manner.

“ Lump-sum taxation is like a credit card to an enterprise, enabling enterprises to firstly use the credit line of the “credit card” for tax payment, and then to refund at the beginning of the following month. The credit line will be automatically recovered after the refund,” said Su Zhiqiang, an officer of the 2nd Clearance Section in Fenggang Office of Huangpu Customs District. “After the implementation of lump-sum taxation, enterprises can take delivery of goods at first rather than separate tax pay when going through clearance formalities, thus both saving human resources and improving clearance efficiency greatly.”

Chicony Electronic (Dongguan) Co., Ltd., specialized in manufacturing computer peripherals, usually receives and dispatches around 300 vehicle-time of imported and exported goods on a monthly basis. Through lump-sum taxation, the Company has saved substantial human and material resources and has no need to reserve tax amount at the beginning of each month, thus keeping over 2 million yuan in liquidity to get bigger efficiency in fund use.