Wucheng County Creates Used Vehicle Export Tax Rebate Fund Pool to Drive Auto Enterprises Overseas(Oct 20)

Wucheng County Creates Used Vehicle Export Tax Rebate Fund Pool to Drive Auto Enterprises Overseas

Source: Lightning News (sdxw.iqilu.com)

https://sdxw.iqilu.com/w/article/YS0yMS0xNzQ0OTU0Nw.html

Wucheng County in Shandong Province has created a used vehicle export tax rebate fund pool, advancing unapproved but pending tax rebates to auto dealers ahead of schedule, shortening capital recovery cycles and enabling enterprises to invest in R&D and expand overseas as a group.

Recently, the used vehicle export base in Wucheng Economic Development Zone welcomed buyers from Nigeria, Ghana, and other countries. After selecting, test-driving, and placing orders, these used vehicles are modified and processed on-site according to different national standards, and will appear in markets across Africa and South America by year-end.

Chima Promise, a Nigerian auto trade purchaser, stated: "We met Shandong Wucheng auto dealers in Nigeria in April. They were promoting new energy vehicles and mining heavy trucks, which we have significant demand for. We came specifically to see the operations in person and discuss cooperation."

Used vehicle export trade is a new business track that Wucheng County has developed in recent years. China has abundant used vehicle resources, and after modification, these vehicles have gained favor in some overseas markets. Combined with the county's large number of auto parts manufacturers, a used vehicle modification and export industry has emerged. Feisheng Auto seized this opportunity, achieving over 50 million yuan in sales within just over a year.

However, used vehicle exports enjoy tax rebates, which are an important channel for capital recovery for many auto dealers. But strict regulatory reviews take time, while enterprises care about the payback cycle. In October last year, the county established an "export tax rebate revolving fund pool," with the county finance allocating a 30 million yuan credit line. After enterprises apply for tax rebates, the commerce, taxation, and finance departments conduct joint approval and verification, and the rebate amount is provided to the applicant enterprise from the fund pool in the form of a loan.

"The rebate is automatically repaid upon arrival, operating on a closed-loop, revolving basis. Capital recovery time is greatly shortened to just two or three working days. By streamlining procedures and boosting efficiency, enterprises can confidently accept orders and stock up, getting cash flow ahead of orders," said Tang Mingliang, deputy director of the county finance bureau.

At the end of last month, a batch of used vehicles exported by Feisheng to Africa arrived at port for settlement. At a 13% rebate rate per vehicle, the enterprise applied for 200,000 yuan in a single transaction. Beyond daily operations, Feisheng also invested in a local legacy auto parts manufacturer to jointly develop compatible components, leveraging new modification and aftermarket business.

With the convenient tax rebate channel, the county is now exploring extending support to new vehicle exports and actively seeking authorization from leading manufacturers such as BYD and Geely. The provincial commerce department has included the county in the core of the "Ten Thousand Enterprises Going Global, Shandong Trade Worldwide" initiative, opening a dedicated auto export zone at the Canton Fair to promote products and preferential policies to global buyers.

In the year since the fund pool was established, the county has cumulatively exported over 1,600 vehicles with a total value of 140 million yuan. The county has now formed an "auto export plus parts R&D and production" industrial model, with auto parts industry output value growing 19.32% year-on-year.

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