China Ends the “Buy-Single Customs” Era: Goodship56 Helps You Transition to Compliant Exporting

On October 1, 2025, China’s State Taxation Administration will officially implement the “Announcement on Optimizing Enterprise Income Tax Prepayment and Filing Matters” (Announcement No. 17, 2025). This new regulation not only streamlines the corporate income tax prepayment process but also strictly regulates the long-standing practice of “buy-single customs”, signaling the end of opaque export operations and ushering in a new era of transparent and compliant exporting.

For SMEs, cross-border e-commerce sellers, and trade agents, this means gray-area export practices are being eliminated, and compliance is now a key factor for survival and growth.

What is “Buy-Single Customs”?

“Buy-single customs” refers to companies or individuals without import/export rights who use the customs declaration credentials of other authorized entities to export goods. Common in China’s small manufacturing businesses, market procurement trade, cross-border e-commerce, and steel exports, this practice arose due to:

* High thresholds for import/export licenses;

* Small businesses seeking to reduce costs or consolidate shipments;

* Business confidentiality and competitive market pressures.

While it may offer short-term gains, the practice carries significant tax and legal risks.

Key Changes in Announcement No. 17: Transparent Oversight

The announcement introduces transparent oversight, requiring export agents to disclose the actual principal exporter and report critical data:

* Actual principal information: Legal name and unified social credit code;

* Export data: Customs declaration numbers and export amounts;

* Oversight responsibility: Tax authorities will cross-check information with customs, foreign exchange, and e-commerce platform data.

There is no longer room for hidden or gray-area operations.

Severe Consequences for Non-Compliance

Companies relying on “buy-single customs” now face multi-level penalties:

* Corporate income tax liability: Non-compliant export amounts are treated as self-operated exports, with taxes up to 25% of the export value;

* Fines and interest: Daily penalties apply, and deliberate concealment can result in fines up to 5 times the unpaid tax;

* Long-term credit consequences: Inclusion in high-risk lists, affecting export tax rebates, foreign exchange settlement, and customs credit ratings for at least three years.

The risks of gray-area operations now far outweigh any short-term benefits.

Affected Industries and Stakeholders

The new regulation impacts virtually all trade-related businesses:

* SMEs: Small factories and temporary exporters without import/export licenses;

* Market procurement trade: Small vendors in markets like Guangzhou and Yiwu relying on buy-single exports;

* Cross-border e-commerce: B2C sellers, including Shopify, Amazon, and independent stores;

* Trade agents and logistics providers: Low-end intermediaries are being phased out, while professional compliant agencies gain market favor.

The industry is shifting from expansion-focused to compliance-focused with quality growth.

Compliance Strategies

Different business types can adopt targeted strategies to ensure a smooth transition:

Small Sellers

* Use licensed agents and maintain full documentation (contracts, invoices, logistics records);

* Obtain import/export registration to become a legally recognized exporter.

Growing Businesses

* Consider establishing Hong Kong or offshore entities to enjoy legal tax benefits;

* Partner with compliant foreign trade service providers for transparent operations.

Established Exporters

* Obtain their own import/export licenses and build a complete export and tax rebate system;

* Optimize tax structures and provide internal compliance training;

* Ensure all documentation aligns with customs and tax filings for regulatory review.

Trade Agents

* Implement client qualification checks;

* Submit the “Summary of Entrusted Export Activities” monthly or quarterly;

* Retain contracts, review records, and logistics documentation for at least 5 years.

Why Choose Goodship56

Goodship56 has a professional team specialized in cross-border logistics and tax compliance. We offer:

* Customized compliant export solutions;

* Full-service corporate income tax prepayment and customs filing;

* Risk assessment and solutions for legacy issues;

* One-stop services for China-US shipping, air freight, FBA delivery, and overseas warehousing.

We help businesses transition smoothly under the new regulation, ensuring safe, compliant, and efficient global operations.

Conclusion

The implementation of Announcement No. 17 marks the transition of China’s export industry from “wild growth” to an era of compliance benefits. For exporters, abandoning “buy-single customs” and embracing transparent, legal operations is no longer optional—it is essential for long-term stability and market competitiveness.

Short-term costs for compliance are outweighed by long-term stability and growth potential. Partner with Goodship56 today to ensure your export business thrives under the new regulations.