You’ve found the perfect product. The samples are excellent, the price is right, and you’re ready to place your first major order from China. But there is a technical detail that often sits in the fine print until it becomes a problem: Export Supervision Codes.
Here is everything you need to know to ensure your shipment is legal, tax-efficient and priced correctly.
What are China Export Supervision Codes?
When your supplier ships goods out of China, they must declare a 4-digit Export Supervision Code (also called the Trade Mode Code) to Chinese Customs.
This code is the shipment’s ID card. It tells Customs exactly how the product is being traded, dictating two critical things:
- Legality: It determines the required documentation and clearance procedures.
- Taxes: It controls the tax implications for your supplier and, most importantly, their tax treatment eligibility. Some codes allow the supplier to claim back or avoid VAT. This directly affects the final price you pay.
The 2026 Code Cheat Sheet
China’s major export supervision codes fall into several categories based on trade type and tax treatment. However, it’s important to understand that the code alone isn’t a guarantee of tax relief. Even if the code (like 0110) allows for a VAT refund, the supplier must still meet several strict criteria:
- Taxpayer Status: They must be a “General VAT Taxpayer” (small-scale taxpayers usually don’t qualify for refunds).
- Documentation: They must hold valid VAT input invoices for all raw materials.
- Eligibility: The industry or product category must be eligible. Many are not! (e.g., Aluminum and copper have 0% refunds, while solar and batteries are often capped at 9%).
- Payment: The foreign exchange must be settled through official bank channels.
Traditional Export Trade
Best for: Established businesses importing bulk goods.
| Code | Model Name | Use Case | Tax Treatment |
|---|---|---|---|
| 0110 | General Trade | The backbone of B2B. Bulk, direct shipments to overseas businesses. | VAT Refund |
| 9710 | B2B Direct Export | The digital version of 0110. Used for bulk orders placed via B2B e-commerce platforms. | VAT Refund |
Cross-Border E-Commerce Export Codes
Best for: Dropshippers, Amazon sellers, and online retailers.
| Code | Model Name | Use Case | Tax Treatment |
|---|---|---|---|
| 9610 | B2C Direct Export | Single parcels sent directly to consumers (e.g., dropshipping). | VAT Exemption (no output VAT charged; input VAT typically not recoverable) |
| 9710 | B2B Direct Export | Used for bulk online B2B orders to overseas businesses. | VAT Refund |
| 1210 | Bonded E-Commerce | Used for bulk goods shipped to Chinese bonded warehouses for storage before domestic sale or re-export. This is NOT a traditional export code but rather a cross-border warehousing mode. | Tax Deferral (VAT charged when goods leave bonded status; not direct export refund) |
| 9810 | Overseas Warehouse | Bulk goods shipped to overseas warehouses (e.g., Amazon FBA, 3PL) | VAT Refund upon Departure or VAT Exemption (depending on eligibility) |
Specialized Trade
Best for: Small traders buying from wholesale markets.
| Code | Model Name | Use Case | Tax Treatment |
|---|---|---|---|
| 1039 | Market Procurement | Used for consolidating small commodities from wholesale markets for export. Common for small traders. | VAT Exemption (no export VAT refund) |
Key Distinctions: VAT Refund vs. VAT Exemption
It’s easy to misunderstand the difference between these two tax treatments. Both reduce the supplier’s tax burden, but through different mechanisms:
VAT Refund (The “Discount” Model)
- Codes: 0110, 9710, 9810.
- How it works: The supplier pays VAT on raw materials. When they export, the government refunds that money (typically 5–13%).
- Impact on Price: High. Suppliers can pass this refund on to you as a lower price.
VAT Exemption (The “No-Tax” Model)
- Codes: 9610, 1039.
- How it works: The supplier does not charge output VAT on the export, but they also don’t get a refund on their input costs.
- Impact on Price: Moderate. It reduces the tax burden, but not as aggressively as a full refund.
Can My Supplier Export Without Using These Standard Codes?
If a factory is small or specialised, they may not hold their own export license. Using a third-party agent to handle customs is legal and common in China. However, you must ensure they are using a legitimate broker.
The Illegal Way: It is relatively common for unscrupulous suppliers to use fraudulent or “borrowed” paperwork to sneak goods out, avoiding all tax obligations. This is illegal, highly risky and destroys your audit trail. It also exposes you to liability if discovered by customs authorities.
The Legal Way: Legitimate export agents handle all customs documentation and tax filings for a standard fee (typically 1-3%). Crucially, when a legal agent is properly engaged, the factory still qualifies for applicable tax refunds or exemptions based on the export code used.
If your supplier uses an agent, demand to see these documents before paying:
- Business License (营业执照)
- Import & Export License (进出口经营权)
- Unified Social Credit Code (USCC)
Buyer’s Checklist: What to Do Next
- Ask the Code Question: Demand to know the 4-digit export supervision code and the intended export process.
- Understand the Tax Treatment: Ask whether the code qualifies for VAT refund, VAT exemption, tax deferral or standard taxation. Understand the difference between these options.
- Verify the Price: If a code with tax benefits (0110, 9710, 9810, etc.) is being used, ensure the quoted price reflects these benefits. Request written confirmation of the tax treatment.
- Check the Agent: If your supplier is using a third party, request the agency’s license and USCC.
Confused About China Export Supervision Codes?
All clients on our China Desk Employer of Record (EOR) platform get expert guidance on China export supervision codes and the latest 2026 policy updates to protect their margins. Get in touch with Kinyu or check out our China Desk services for step-by-step support.
