Declaring in RMB and collecting payment in RMB still allows normal tax rebates. The key is to get the "three principles" right and not let the declaration basis go wrong.
Can you get a rebate: yes
According to the People's Bank of China's "Q&A on Policies for Cross-Border Trade RMB Settlement": whether it is "goods first, payment later" or "payment first, goods later", as long as the three principles of RMB pricing, RMB customs declaration and RMB settlement are adhered to, the export tax rebate can be processed.
All three principles are indispensable: the contract is in RMB, the currency on the customs declaration is RMB, and the cross-border receipt is also in RMB.
When the three are consistent, the rebate process is essentially no different from USD settlement.
The three principles broken down
| Principle | Meaning | Key point |
|---|---|---|
| RMB pricing | Contract and invoice priced in RMB | Amount must match the customs declaration |
| RMB customs declaration | Select RMB in the currency field of the customs declaration | Declared amounts correspond one to one |
| RMB settlement | Cross-border receipts in RMB | Keep foreign exchange collection vouchers for inspection |
Differences from USD settlement
The rebate logic is exactly the same; the differences lie mainly in the foreign exchange conversion step and exchange rate risk.
USD settlement goes through "USD credited — settlement — RMB", adding one more exchange rate fluctuation and settlement cost.
RMB settlement eliminates this step, but requires the customer's region and bank to cooperate.
Which scenarios suit RMB settlement better
It works most smoothly when the customer's country has an RMB clearing arrangement with China and the counterparty is also willing to price in RMB.
Cross-border e-commerce, long-term stable supply, and counterparties with fund flows in China are all fairly suitable.
If the customer insists on a USD quote, you can still sign the contract in RMB first and agree on a conversion rate.
Key operational points
The receiving account must be able to handle cross-border RMB business; confirm with the bank in advance.
The currency and amount on the customs declaration, invoice and contract must all match.
After receiving the funds, keep the collection vouchers as required for the rebate, in case of tax authority review.
The rebate rate depends on the commodity code, not the settlement currency.
Why more and more companies settle in RMB
In 2025, cross-border RMB receipts and payments totaled RMB 70.6 trillion.
In the first five months of 2026, the share of cross-border trade settled in RMB was about 30%.
For companies, RMB settlement removes one currency conversion and reduces the impact of exchange rate fluctuations.
The above data is subject to the latest publication by the People's Bank of China and the State Administration of Foreign Exchange.
