How to check the tax code of non-metallic compensators? Choosing the wrong code may overpay taxes

First, find out: What category does non-metallic compensator fall into in the tax system?

Many purchasing and finance personnel mixed non-metallic compensators with metal expansion joints to file taxes, which were returned by the tax bureau. The main materials of non-metallic compensators (also called non-metallic expansion joints and fabric fiber expansion joints) are glass fiber, silicone cloth, fluororubber, etc., which are completely different from metal products. According to the Customs Import and Export Tariff of the People's Republic of China, non-metallic compensators are usually classified as HS code 8484.1000 (sealing gaskets, etc.) or 5911.9000 (textile products category), depending on the product structure and use. To give a practical example: theNon-metallic expansion joint (fabric fiber expansion joint)If it mainly plays the role of sealing and compensation, it is more common to return to 8484.1000; But if it is a flexible connector made of pure fabric fibers, 5911.9000 is also possible. You may ask: What about the one with the metal flange? Don't worry, I'll talk more about it below.

Second, what are the consequences of choosing the wrong tax code?

Two days ago, I met a customer who was doing power plant renovation. They reported the rectangular non-metallic expansion joint to the tax number of metal products (such as 7326 or 7307). As a result, they paid taxes and fines after being inspected, and paid nearly 8 points of VAT. Because the VAT rate for non-metallic materials is typically 13%, and some metal products may apply to lower rates or different regulatory conditions. What's more troublesome is that the wrong code will also affect the export tax refund-if the code that should be classified as a tax refund rate of 13% is classified as a code with a tax refund rate of only 9%, you will get 40,000 less for every 1 million goods. Tsk, the money for a small car is just gone. You say it was wrong or not?

Third, how to quickly determine the accurate coding of your own nonmetallic compensator? Three steps

First step, look at the structure-Is it mainly a non-metallic fabric layer, or is there a metal frame? If something like the one in our stationRectangular non-metallic expansion jointIn that case, a metal frame but a non-metal fabric is the core compensator, so it is classified as a non-metal body. Remember, metal frames are only supports, not functional bodies.

Second step, look at the use— — Is it used for flue gas pipelines (such as desulfurization flue gas baffle door matching) or high-temperature air ducts? If it is a flue gas system in a power plant or cement industry, the high probability of coding is 8484.1000. From our stationDesulfurization flue gas baffle doorAndNon-metallic expansion joint (fabric fiber expansion joint)Often used in combination, almost all compensators in flue gas environment take this code.

The third step is to look at the customs classification decision— — It is recommended to directly check the public classification decision of the General Administration of Customs of China, or ask a professional customs broker to pre-classify. Don't guess for yourself, after all, a code difference may be as different as a car. Two days ago, there was a customer in the cement industry.rubber compensatorIt was reported as a plastic product, and it was returned three times. Finally, I found a classification company to get it done.

4. Several reference codes commonly used in the industry, but don't copy them directly

• 8484.1000— — This code covers sealing gaskets, mechanical seals, etc. Non-metallic compensators are used by many enterprises as pipeline compensators. Applicable scenarios: compensators with flanged connections such as flue gas pipelines in power plants and air ducts in cement industries.
• 5911.9000Pipes or the like made of textile articles, suitable for round or rectangular compensators of pure fabric fibers. For example, some without a metal reinforcing layerNon-metallic expansion joint (fabric fiber expansion joint)。
• 3926.9090 (Plastic Products)-If the main material of the product is polytetrafluoroethylene (as in our stationPTFE compensatorOrRubber PTFE compensator), this broad category may be considered, but it is necessary to confirm whether a metal reinforcing layer is contained. It is usually more secure to go 8484.1000 with a metal layer.

Customs across the country may fight over the classification of similar products. For example, the identification of the same non-metallic expansion joint by Shanghai Customs and Tianjin Customs was inconsistent. Therefore, it is best to make a pre-ruling with the local customs before shipping, and write it down in black and white to avoid overturning. And guess what? One of our customers was stuck in Ningbo Port because of the classification decision of Shanghai Customs. Ningbo Customs denied it and delayed it for two weeks.

V. Practical suggestions for procurement and finance

1. Get the supplier's product manual or material listConfirm the proportion of main materials and non-metals. Such asRubber PTFE compensatorIt is necessary to clarify the ratio of rubber to tetrafluorine and whether there is a metal skeleton.
2. If that product contain a metal flange or stiffener, but the non-metallic part serves as the primary compensationThe code is still determined according to the non-metallic body, and it is not biased by the metal part. Many rectangular non-metallic expansion joints have angle steel flanges, but the core compensation layer is fabric fiber, which still belongs to 8484.1000.
3. When declaring export tax refund, keep all product drawings and material certificates, on record for future reference. Once challenged by customs, this information is a lifesaver.
4. Really unsure, spend hundreds of dollars to find a professional classification company to make a conclusionIt's a lot more cost-effective than getting fined. A few days ago, a customer who was a power plant spent 800 yuan for pre-classification because he exported non-metallic compensators in batches, saving tens of thousands of fines and late payment fees that he might face later.

When it comes to tax coding, I would rather be conservative than copying peers for the sake of saving trouble-the coding of peers may also be wrong. There must be such an example around you: when you see others report 7326, you follow it, and as a result, the whole army is annihilated. For those who do purchasing and finance, it takes ten minutes more to confirm the code, which is a hundred times better than paying taxes afterwards.