The southern Chinese tech hub of Shenzhen is using blockchain technology to expedite the processing of export tax rebates.
Shenzhen’s tax authorities issued China’s first blockchain-based “Agency Export Goods Certificate” (代理出口货物证明) on 24 July, according to a report from CCTV.
The move marks the first time that blockchain technology has been applied to the processing of export tax rebates in China, as well as the successful completion of initial trials by Shenzhen’s tax authorities to put related information on the blockchain.
In 2020 Shenzhen processed 900 million yuan in export tax rebates, and issued 97,800 “Agency Export Goods Certificates,” accounting for 12% of China’s national total.
Wan Chunsheng (万春生), a senior official from the Shenzhen tax authorities, said that “Agency Export Goods Certificates” are important statutory documents when applying for export tax rebates, while rebate procedures are lengthy and complex with regard to data requirements.
“Blockchain technology possesses the advantages of data transparency, real-time sharing and being tamper proof, and the application of the blockchain to export tax rebate operations increases the accuracy and timeliness of assessments,” he said.
“Shenzhen is taking the lead in putting the applications, issuance and inquiry procedures for agency export certificates on the blockchain,” said Zhang Guodong (张国栋), from the tax rebate office of Alibaba’s Yidatong to China News.
“This enables entrusting parties and entrusted enterprises to engage in real time inspection and tracking of the processing of ‘Agency Export Good Certificates,’ ensuring the effective comparison of on-chain certificate data, and further raising the security and stability of the data of both tax authorities and enterprises.”