New Chinese Export Compliance Regulations Effective 1 Oct 2025

04 Sep New Chinese Export Compliance Regulations Effective 1 Oct 2025

China has announced new export compliance rules (Announcement No. 8 of 2025) that will be fully enforced from 1 October 2025. Companies exporting goods via agents must report the basic information and export amounts of the actual entrusting party during prepayment of corporate income tax. Agents failing to provide accurate information will be treated as self-exporters and bear the resulting tax liability

If a factory exports directly (without using an agent), this new requirement does not impact them.

When companies export goods through agents, they must report the following information at the time of corporate income tax prepayment filing:

• Basic information of the actual entrusting party (the real exporter)
• The amount of exports involved

The actual entrusting party refers to the real producer or seller of the exported goods.

The tax authority now requires agents to report the real exporter’s info and export amount during each tax prepayment filing.

Practical Impact of the Policy:

For Agent:

1. Increased Compliance Burden:
   • You must now collect and report complete information on the actual exporters each time you file corporate income tax prepayments.
   • This includes business name, tax ID, and the export amount.
2. Higher Tax Risk:
   • If you fail to report or report incorrectly, authorities will treat it as your own export business.
   • You’ll have to pay corporate income tax on the entire export amount, even if you only earned a small fee (e.g., 2%).
3. Increased Data Collection Cost:
   • You’ll need stronger coordination with upstream clients to collect contracts, invoices, and supporting documents.

For the Actual Entrusting Exporter (e.g., the manufacturer or seller):

1. Greater Transparency:
   • Their information is now reported to tax authorities via the agent.
   • This gives tax authorities better visibility of the real exporter behind the scenes.
2. Helps Prevent Tax Evasion:
   • The tax authority can now trace profits back to the true business entity,
   • Ensuring that corporate income tax is paid by the actual profit-maker.

For customers in Australia, you should be aware of possible changes on the supplier side:

1. Chinese suppliers may avoid using agents

• Some factories might prefer to export directly under their own name, to avoid problems for their agents.
• You may be asked to switch contracts or payment details to match their new exporting arrangements.

2. Shipping documents may change

• Exporter of record might shift from an agent to the real factory.
• Make sure this doesn’t conflict with your country’s import requirements (e.g., needing origin info for duties or labeling).

3. Potential delays or pricing changes

• Chinese agents might become stricter or charge more due to the new compliance burden.
• If your supplier relies on an agent, this could impact:
  • Lead time
  • Export documentation
  • Possibly small price increases to cover compliance costs

4. You may be asked for documentation

• Some agents or suppliers might ask you to confirm purchase orders or contracts as part of their compliance process with tax authorities.
• This would just be for their internal or tax reporting use.

???? In Summary:

This policy is part of the tax authority’s efforts to tighten control over “export via agent” business models and to ensure proper corporate income tax is collected from the real profit-generating entity.
Agent companies must report detailed data accurately — otherwise, they may face significant tax liabilities.