Companies carry out false trades, “idle orders,” etc., and contract flow, capital flow, and invoice flow may be settled, but the logistics of goods are often lacking. The key “first class” is missing from the “fourth class,” and tax and credit compliance cannot stand up to scrutiny. As a result, the logistics of goods has become the focus of strict commodity credit approval checks. At the end of April, the State Administration of Taxation issued the “Positive and Negative List of Taxpayers Issuing Invoices in Compliance”, which included 28 types of situations such as carrying out financing trade, false trade, “four-tier” inconsistency, “open and circular” invoices without reasonable commercial purposes, and “idling orders” in fictional transactions. After the “checklist” was implemented, the banking industry quickly improved risk control rules for commodity trade finance operations. A commercial bank in a city in the Yangtze River Delta issued a special control notice to upgrade risk control over the entire commodity pledge and trade financing process. It has been three months since the “checklist” was implemented. The corrective effects have been transmitted step by step along the “trade-invoice-credit” chain, and trading enterprises operating in compliance have gained more financial vitality.

Companies carry out false trades, “idle orders,” etc., and contract flow, capital flow, and invoice flow may be settled, but the logistics of goods are often lacking. The key “first class” is missing from the “fourth class,” and tax and credit compliance cannot stand up to scrutiny. As a result, the logistics of goods has become the focus of strict commodity credit approval checks. At the end of April, the State Administration of Taxation issued the “Positive and Negative List of Taxpayers Issuing Invoices in Compliance”, which included 28 types of situations such as carrying out financing trade, false trade, “four-tier” inconsistency, “open and circular” invoices without reasonable commercial purposes, and “idling orders” in fictional transactions. After the “checklist” was implemented, the banking industry quickly improved risk control rules for commodity trade finance operations. A commercial bank in a city in the Yangtze River Delta issued a special control notice to upgrade risk control over the entire commodity pledge and trade financing process. It has been three months since the “checklist” was implemented. The corrective effects have been transmitted step by step along the “trade-invoice-credit” chain, and trading enterprises operating in compliance have gained more financial vitality.