Domestic Sale Duty Supplement

Domestic sale tax supplementation refers to the act of a processing trade enterprise selling bonded imported materials, finished products, defective products, or by-products directly on the domestic market without approval or customs procedures, and being required to pay back taxes and possibly fines after customs discovers it; it also refers to the compliant operation where an enterprise, after customs approval, voluntarily pays import duties, value-added tax, and consumption tax when selling bonded goods domestically. Usage scenarios: during the verification of a processing trade manual, if bonded materials are sold domestically for some reason, taxes must be paid according to the tax rate and price at the time of domestic sale; or customs inspection discovers unauthorized domestic sale and requires tax payment and penalties. Notes: declaration to customs and approval must be obtained, otherwise it constitutes smuggling and violation; the tax payment price is usually determined based on the original import price of the materials or the domestic sale price; the tax rate applies as of the date customs accepts the declaration for tax payment procedures. Difference from 'levying taxes': domestic sale tax supplementation targets originally tax-exempt bonded goods, which are levied upon conversion to domestic sale; it is the opposite of 'tax refund'. Difference from 'domestic sale of scrap materials': domestic sale of scrap materials also requires tax supplementation, but the price and tax rate have special provisions.