As a Chinese accessories manufacturer serving American and European markets, we know how much export tax rebate policies matter to your bottom line. Every percentage point change can impact your landed costs, retail pricing, and sourcing decisions.
China’s recent updates to its export tax rebate policies are designed to stabilize trade flows and promote high-value manufacturing. If you’re importing accessories like belts, hats, scarves, and gloves from China, these rebate changes could affect your cost structure significantly.
Understanding these policy shifts is essential if you're placing large-volume orders or working with FOB or DDP terms. In this blog, I’ll walk you through the latest rebate percentages, policy drivers, and what they mean for U.S. buyers like Ron and other industry professionals.
What Is China’s Export Tax Rebate and Why Does It Matter?
China’s export tax rebate system is a refund mechanism that encourages export activity by reimbursing exporters a portion of the value-added tax (VAT) they initially paid during production.
By returning part of the VAT to exporters, China makes domestic manufacturing more competitive globally. This rebate directly impacts how much your suppliers can afford to lower prices.
How Does the Tax Rebate Work for Accessories?
The process starts when accessory manufacturers like us purchase raw materials and pay a 13% VAT. After exporting the final products, we can apply for a rebate, which historically ranged from 6% to 13%, depending on the product category.
For instance, belts often fall under HS code 4203, and tax rebates for such leather or synthetic belts were once 9%, but in 2024, they were raised to 13% to support exports. Hair accessories, under HS code 9615, typically see an 8% rebate.
A detailed breakdown by accessory type can be found in this customs rebate classification chart. For recent specific cases, you can explore the China Briefing updates on tax incentives.
Why Should Global Buyers Care About Rebate Policy?
When the rebate is higher, your supplier can offer a better quote or reinvest into faster development and better packaging. If the rebate drops or is canceled, the supplier must either increase the price or reduce service value.
For buyers on FOB terms, this matters because factory margins are directly impacted. For DDP terms, it's even more important—since pricing includes logistics and taxes, a lower rebate may erode supplier flexibility.
By understanding rebate mechanics, you can time your orders better or negotiate around tax refund cycles. For example, in Q1 2025, the government prioritized sectors with lower profit margins—like fashion accessories—for more favorable rebate retention timelines.
What Are the Updated Rebate Rates for 2025?
Since January 2025, China has announced policy changes on a rolling basis that target niche sectors like apparel and accessories.
The tax rebate rates for most common accessories have either increased or been maintained at high levels to support international trade resilience in uncertain global markets.
Which Accessories Are Included in the High Rebate Category?
Here’s a snapshot of updated 2025 rebate rates for common products:
| Product Category | HS Code | 2024 Rebate | 2025 Rebate |
|---|---|---|---|
| Leather Belts | 4203 | 9% | 13% |
| Hair Clips & Bands | 9615 | 8% | 8% |
| Scarves & Shawls | 6214 | 10% | 13% |
| Gloves | 6116 | 10% | 13% |
| Hats (Knit/Straw) | 6505 | 9% | 13% |
You can cross-check these figures via the Ministry of Commerce notice on tax rebates and real-time updates on China Customs official site.
Are There Any Exceptions or Limitations?
Yes. Some accessory materials, like those made with animal fur or certain luxury textiles, may have capped rebates or may fall into a “watchlist” due to environmental or sustainability concerns.
In addition, accessories combined with electronics (e.g., light-up hair clips) are evaluated under separate codes and may receive reduced rebates (6%-9%), as seen in the January 2025 HS code update bulletin.
You can also find relevant compliance guidelines on Trade Compliance Global or updates through PwC’s China tax insights.
How Does This Impact Pricing and Supplier Quotes?
Export tax rebates influence how much a supplier can offer discounts, especially under FOB, CIF, and DDP pricing structures.
Increased rebate rates have empowered Chinese factories to offer more competitive prices in 2025, especially for high-yield orders.
Will Your Prices Go Down Because of Higher Rebates?
Not automatically, but it gives the factory more room to accommodate your requirements without compromising quality. For instance, at AceAccessory, we use these rebates to:
- Offset packaging upgrades
- Absorb shipping fluctuations
- Accelerate custom sampling
You’ll find helpful case studies on Supply Chain Dive or Alibaba’s logistics blog.
Can Buyers Use Rebate Awareness to Negotiate?
Absolutely. Smart buyers mention rebate policy timelines during quote requests. When you show that you understand how rebates affect pricing, suppliers treat you as a strategic client.
Here’s what we recommend:
- Ask: “Is this quote post-rebate or pre-rebate?”
- Check: “Are you eligible for 13% rebate under HS code 6214?”
Many buyers from the U.S. who are now our repeat customers began our partnership through rebate-savvy inquiries. You can read tips on platforms like Global Sources or Made-in-China's negotiation guides.
What Should Importers Do to Benefit from These Policies?
Understanding is not enough—importers must act on rebate policies to secure financial advantage and better service.
From contract drafting to logistics selection, rebate awareness can improve every step of your sourcing process.
Should You Ask for Rebate Breakdown in Supplier Invoices?
Yes. When requesting FOB or DDP terms, always ask your supplier to show the VAT rebate portion. It can help you decide which Incoterm is most beneficial.
Some advanced buyers go further and structure year-end rebate-sharing agreements—especially with exclusive product designs.
Learn more about structured deals via China Law Blog or DHL’s global trade services insights.
Is It Time to Review Your Supply Contracts?
If you signed a long-term contract before 2025, now is the time to revisit those clauses. Ensure that your pricing models align with current rebate realities.
When working with us at AceAccessory, we always proactively notify our clients when rebate percentages change. We also offer rebate timeline forecasts to help you optimize your yearly budget planning.
Explore more examples through HK Trade Development Council's sourcing support or Trade.gov’s exporter tools.
Conclusion
China’s export tax rebate system isn’t just a bureaucratic issue—it’s a major pricing lever. For buyers in the fashion accessories market, understanding rebate dynamics means negotiating better, planning smarter, and saving more.
At AceAccessory, we stay informed and transparent about rebate changes to help you make profitable and secure sourcing decisions. If you want to know how the latest policy impacts your next accessory order, our project managers are ready to guide you.
