If a follow-up order results in company losses due to negligence, will there be financial penalties? This is a heavy topic, but it is indeed an issue that everyforeign tradepractitioner needs to seriously consider and guard against.

The most memorable similar incident occurred one to two years before the pandemic. At that time, the factorys VAT special invoice (VAT invoice) was issued, but the operator carelessly placed it under a pile of documents, where it remained for a year. SinceExport Drawbackthe declaration must be submitted by April of the year following the customs declaration year, this operational oversight led to a missed deadline for the tax refund application, resulting in a complete loss of the 150,000 yuan refund. For example, if this year is 2024, all goods exported under customs declaration in 2024 must apply for a tax refund by April 2025, or the refund benefit will be forfeited.

In this incident, not only was the operator negligent,the client, document operator, customer service manager, finance department, and salespersonwere also at fault. The client failed to follow up on the invoice progress, the document operator and customer service manager did not supervise document organization, the finance department did not promptly verify the tax refund materials, and the salesperson failed to communicate effectively. The cumulative effect of these mistakes ultimately led to a total loss of 150,000 yuan in tax refunds.

What was the outcome? Naturally, someone had to take responsibility. The operator was fined 2,000 yuan, the customer service manager was fined 20,000 yuan, the entire team bonus for Operation Team 1 was deducted, and the remaining losses were borne by the salesperson. The client, however, was very understanding. Although, as the service provider, we should have taken full responsibility, the client agreed to share part of the blame and paid double the service fee to compensate for the loss.

The changes brought by this lesson

Since then, our company has conductedspecialized tax refund management inspectionsevery year between February and March. During this period, the finance department thoroughly reviews accounts on both sides to ensure all export declarations from the previous year that have not yet received VAT invoices or completed tax refunds are properly handled. Through these management measures, we have avoided similar mistakes and, to some extent, improved interdepartmental collaboration efficiency and risk awareness.

How to avoid similar mistakes?

1. Standardized document managementDocument accumulation is one of the root causes of problems. Ensuring timely organization and archiving of all documents and establishing standardized document management processes are particularly important.
2. Interdepartmental communication and collaborationEach work segment is interconnected. Tax rebates require collaboration among documentation, clients, finance, and other parties. Negligence from any party may lead to overall failure. Therefore, strengthening cross-departmental communication and collaboration mechanisms and establishing specialized reminder processes are crucial means to avoid such mistakes.
3. Key node reminder mechanismTax rebate declarations have clear deadlines, and missing them is irreversible. Companies are advised to set up automatic reminders for critical time points through internal ERP systems, emails, or other tools to ensure timely attention to every important milestone.

Conclusion

In foreign trade work, every detail may impact the overall efficiency of the enterprise, especially in critical financial transactions such as export tax rebates. Every mistake comes at a cost—sometimes financial loss, sometimes damage to client relationships. However, we can continuously learn from these experiences, improve processes, strengthen management, and ultimately reduce future errors.

We hope everyone can learn from this lesson, prepare for the unexpected, and proceed cautiously through the complex processes of foreign trade. After all, standardized management and meticulous attention to detail are the foundations for standing firm in the international trade arena.