Home»Chemical Products» Exporting Water-Based Paint from China: A Manufacturer's Guide to Customs & Tax Rebates
As global attention to environmental protection and sustainable development intensifies, water-borne coatings—using water as the solvent—are entering a golden era of growth. As the world’s leading paint producer, China is seeing its high-quality, low-VOC (volatile organic compound) water-borne coating products gain strong favor in international markets.
Yet, for many outstanding manufacturers focused on technological innovation and production, two core, non-technical barriers often stand in the way of selling their products overseas:
Lack ofImport and exportBusiness License: Unable to sign contracts with overseas clients or receive foreign exchange directly in its own name.
I can't enjoy itTax Rebates: Missed out on the significant policy dividends provided by the state to encourage exports, which could have substantially boosted profits.
This article aims to provide a professional and rigorous hands-on guide that systematically outlines the core procedures and compliance essentials for exporting water-based coatings, and clarifies how to address the aforementioned challenges.
I. The cornerstone of the export process: accurate product classification (HS Code)
Commodity classification is the first and most critical step in all export operations; it directly determines the regulatory requirements and the export tax rebate rate.
Core principles for classifying water-based coatings:
Solvent type is the key: This is the primary criterion for distinguishing major categories of coatings. Using water as the main dispersion medium or solventWater-based paint, should be classified underHeadings 32.09 to 32.11; whereas coatings that primarily use organic solvents and are classified as “non-aqueous medium” are mainly assigned to heading 32.08.
Composition and intended use determine the subheading: Once it has been identified as a water-based coating, the final HS code must be determined according to the specific type of synthetic polymer or chemically modified natural polymer used (e.g., acrylic, epoxy, polyester, etc.).
VOC content affects domestic taxation: In China, a consumption tax is levied on coatings. However, according to policy, in the construction stateVolatile Organic Compound (VOC) content ≤ 420 g/LThe water-based coating canExempt from excise tax. Therefore, accurately determining and declaring VOC content is crucial.
II. Core Export Process: From Order to Payment Collection
On the basis of accurate classification, the complete export process includes the following key steps:
(I) Contract & Payment Collection
For manufacturers without import-export rights, this is the primary obstacle. Partnering with a professional trading agent is a common and highly efficient solution in the industry. The agent acts as the exporter, signs the foreign sales contract with the overseas customer, and is responsible for safely and compliantly collecting payment in U.S. dollars before settling in RMB with the domestic manufacturer.
(II) Document Preparation and Export Declaration
When declaring to customs, the "declaration elements" must be filled out in accordance with the regulations; this is the core requirement for ensuring smooth clearance.
Ingredient content: Clearly list the specific percentages of various film-forming substances (e.g., acrylic polymer 30%, epoxy resin 15%, etc.).
Purpose: Clearly specify the application areas of the coating, such as "for corrosion protection of metal surfaces" or "for exterior wall decoration of buildings."
VOC content in construction state: Report the value accurately in “g/L”; this is the key criterion for determining whether the consumption tax is exempt.
Other Basic Information: Brand, packaging specifications, model, etc.
(III) Logistics and Transportation
Arrange the booking of shipping space.Tow truck, a series of logistics operations such as port entry. Special attention should be paid to the fact that some water-based coatings may be classified asHazardous ChemicalsAt this point, a trucking fleet and freight forwarder qualified for dangerous-goods transport must be engaged, and it must be ensured that packaging, labeling, and shipping documents (e.g., MSDS) fully comply with internationalMaritime transport(IMDG) orAir freight(IATA) regulations.
(IV) Export Tax Rebate Processing
This is a crucial step in maximizing export profits. Only after the goods have been declared for export and successfully received foreign exchange, can enterprises with export qualifications apply to the tax authorities for a refund of the value-added tax paid during the domestic production of the products.
For manufacturers: If the export is conducted through a trading agent, the agent will handle the entire tax-rebate application process and remit the full amount of the approved rebate to the manufacturer. This payment is one of the core profit sources of the export business and directly increases the company’s net income.
III. Compliance Risks and Professional Advice
Risk: Misdeclaration of hazardous chemicals.
Professional advice: Before export, you must accurately determine, based on the product’s MSDS (Material Safety Data Sheet), whether it is a hazardous chemical. If it is, you must declare it truthfully to customs and provide all required documents such as the dangerous-goods packaging certificate and performance sheet. Concealment or omission will lead to serious legal consequences.
Risk: False reporting of origin information.
Professional advice: Ensure that the origin information on product packaging, labels, and all documents is true, accurate, and consistent. Any form of false declaration of origin is illegal.
Risk: Delays or penalties resulting from disputes over customs classification.
Professional advice: For new water-borne coatings whose composition is complex or whose use is special, it is strongly recommended that, before the goods are exported, an application be submitted to the directly affiliated customs office at the place of registration through the customs pre-ruling system, so as to obtain an official and legally binding classification opinion. This will fundamentally forestall subsequent disputes.
Conclusion
Successfully exporting water-based coatings requires not only that the product meets environmental standards and market demand, but also that the company has a deep understanding of international trade rules, customs regulations (especially chemical supervision), and financial policies.
For most manufacturers, the most effective strategy is “specialized division of labor”: concentrate core resources on R&D, production, and quality control of coatings, while entrusting complex trade qualifications, cross-border finance, hazardous-goods logistics, compliant customs clearance, and tax-rebate matters to seasoned professional partners (such asZhong Shen International Trade Co., Ltd.) for processing.
This not only helps avoid potential compliance risks, but also ensures that companies fully reap all the economic benefits of national export policies, making premium Chinese water-based coatings even more competitive in the international market.