In the 1990s, China's most important export compensation policy was the so-called "foreign exchange earning reward" (probably called differently). But please note that this is not subsidized by the central government. In other words, our national government has never had a so-called compensatory policy. The background of this policy was the shortage of foreign exchange in many places at that time. It is difficult to import equipment without foreign exchange and so on. Therefore, Jiangxi, Sichuan and other places have relatively high export incentives, while coastal areas are relatively low. This may not be available now. There is no shortage of foreign exchange.

Foreign countries often talk about export tax rebate. In fact, our export tax rebate is lower than that of foreign countries, and there are also export tax rebates abroad. It is said that European exports are not taxed; However, in China, it is a "first sign and retreat", often (mostly products) cross 17 and retreat 15.

As for export tax fraud, you know the process of tax refund, and it is easy to imagine:

At the time of export declaration, the customs records the amount of foreign exchange receivable (declaration form and verification form), and the bank issues a certificate of the amount of recovered foreign exchange (memo). The export company takes the water bill, customs declaration form and verification form to the safe for verification, and then goes to the tax bureau for tax refund.