SHENZHEN, CHINA – As China’s State Taxation Administration rolls out Announcement No. 17, a landmark regulation set to reshape export tax declarations, industry leader Sunny Worldwide Logistics is taking decisive action to strengthen its compliance framework and guide clients through the new regulatory landscape. The new rules, effective from the third quarter of 2025, are designed to eliminate tax loopholes and illegal practices such as "buy single export," a long-standing challenge in the logistics sector.
The regulation introduces a more detailed tax declaration form that requires enterprises to separately report self-operated export income, entrusted export income, and export agency fees. By cross-verifying this information with customs big data, tax authorities can now precisely identify the true shipper in any transaction, closing a gap that previously allowed some companies to obscure their identities and evade taxes.
For logistics providers, the stakes have never been higher. Practices like "buy single export"—where goods are exported under a third party's name—along with underreporting shipment values and delaying income confirmation, are now under intense scrutiny.
"Announcement No. 17 is a paradigm shift for the export industry," stated a spokesperson for Sunny Worldwide Logistics. "It places a greater responsibility on logistics partners to ensure transparency and integrity throughout the supply chain. Our goal is not just to comply, but to lead the way in establishing a new standard for ethical logistics."
Under the new system, if the true shipper cannot be identified or fails to declare income correctly, the logistics agent—such as Sunny Worldwide Logistics—could be held liable for tax payments and face significant penalties. The risks extend beyond financial repercussions to include severe reputational damage, intensive audits, and even criminal investigations for facilitating false exports.
Recognizing these challenges, Sunny Worldwide Logistics has proactively rolled out a multi-pronged strategy to protect its operations and its clients from these risks.
To align with Announcement No. 17, Sunny Worldwide Logistics has enhanced its operational protocols across several key areas:
Strengthened Client Due Diligence: The company has tightened its Know Your Customer (KYC) protocols. Before processing shipments, clients are now required to provide valid business licenses, tax registration certificates, and export contracts to verify their identity and tax status. This ensures the actual shipper is clearly documented, neutralizing the risks associated with "buy single export" schemes.
Advanced Data Integration: Sunny Worldwide Logistics is investing in its technology infrastructure by integrating customs and tax data reconciliation tools into its logistics software. This system enables real-time tracking of export income and cross-checks shipment data against tax filings, automatically flagging discrepancies for immediate review and ensuring declarations are both accurate and timely.
Comprehensive Staff Training: A mandatory compliance training program has been launched for all employees involved in export operations. These quarterly workshops focus on the specifics of Announcement No. 17, modern customs procedures, and anti-fraud measures, equipping staff to identify and report potential non-compliant activities.
Transparent Agency Agreements: All agency export contracts have been revised to explicitly outline the client’s responsibility for income declaration. The new templates include clear clauses specifying that the shipper is legally obligated to report export income accurately, shielding Sunny Worldwide Logistics from potential liability.
Proactive Engagement with Authorities: A dedicated compliance officer has been appointed to serve as a direct liaison with local tax and customs authorities. This open channel facilitates collaboration, allows for guidance on complex export scenarios, and ensures the company remains ahead of regulatory expectations.
Client Education and Advisory: Understanding that compliance is a shared responsibility, Sunny is now offering advisory services to help its clients, particularly small and medium-sized enterprises (SMEs), navigate the new rules. Through webinars and detailed compliance guides, the company is educating exporters on best practices for income categorization and data reporting, fostering trust and building stronger, more resilient partnerships.
Announcement No. 17 signals a new era of transparency and accountability in China's export market. By embracing these changes with a robust and proactive compliance strategy, Sunny Worldwide Logistics not only mitigates risks but also reinforces its position as a trusted and ethical leader in the global logistics industry. These measures ensure the company is well-prepared to meet the demands of regulators while continuing to provide seamless and secure freight forwarding and customs clearance services to its worldwide clientele.
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