For battery manufacturers, contract processors and importers, a 4% consumption tax represents a significant cost burden. Yet many are unaware that since 2015, to encourage the development of environmental protection and new energy industries, the state has implemented a preferential policy of exempting specific types of eco-friendly batteries from consumption tax.

The critical "key" to enjoying this policy is a CMA test report issued by a qualified testing institution. This guide provides a comprehensive analysis of policy requirements and a detailed breakdown of how to efficiently and compliantly obtain this valuable report.

01 Policy Origin: Which Batteries Qualify for Consumption Tax Exemption?

This policy is directly based on the Notice of the Ministry of Finance and the State Administration of Taxation on Levying Consumption Tax on Batteries and Coatings (Cai Shui [2015] No.16). The core of the policy is: exempting some eco-friendly batteries from consumption tax, and levying a 4% tax rate on other batteries (e.g., lead-acid batteries).

The exemption scope is clearly defined, covering mainstream eco-friendly batteries on the market. You can quickly determine if your products are eligible for exemption with the table below:

If your enterprise’s products fall into the above categories, complying with the exemption procedures will directly bring considerable cash flow benefits to the enterprise.

02 Core Credential: Why a CMA Test Report Is Mandatory?

According to supporting announcements from the State Taxation Administration, enterprises applying for the tax exemption must "hold a product test report issued by a testing institution recognized by a provincial or higher-level quality and technical supervision department".

The "recognition" here has clear standards: the testing institution must hold a valid Metrology Certification for Qualification Assessment Certificate (CMA Certificate) issued by the national or provincial certification and accreditation supervision department, and the battery testing items corresponding to the products must be included in the certificate’s attached schedule.

What is CMA?

CMA (China Metrology Accreditation) is the abbreviation for mandatory certification system established in accordance with the Metrology Law of the People’s Republic of China. Only test reports issued by CMA-accredited laboratories have legal effect and can be used for product quality evaluation, achievement appraisal, etc.

Why such strict requirements?

Tax incentives are related to national fiscal revenue and market fairness. Third-party data with public credibility is essential to prove that products truly meet the technical standards for tax exemption (e.g., mercury-free, lithium-ion battery type), preventing policy abuse.

Therefore, a qualified test report affixed with the CMA seal is the only valid legal credential for you to prove product compliance to tax authorities and apply for tax exemption.

03 Full Application Process: A Clear Path from Preparation to Approval

Obtaining a compliant tax exemption test report follows the clear steps below. A typical process, from enterprise entrustment to final acquisition of a report available for tax declaration, usually takes 3 to 6 weeks. The duration mainly depends on the complexity of testing items and sample preparation.

Step 1: Enterprise Self-Assessment & Preparation

First, confirm whether your battery products fall into the seven tax-exempt categories above. Second, sort out product specifications, technical manuals and other documents, and prepare a sufficient number of representative samples in accordance with the testing institution’s requirements.

Step 2: Select and Entrust a Compliant Testing Institution

This is the most critical step. You need to find and verify a testing institution with CMA qualification for battery-related testing items. As a professional third-party testing laboratory, Guangdong Energy Storage Testing Technology Co., Ltd. has a CMA qualification scope covering the testing capabilities of mainstream batteries, and can provide one-stop compliant testing services for enterprises.

Step 3: Cooperate to Complete Testing & Report Issuance

The institution will test the samples in accordance with national standards (e.g., mercury content verification, battery type identification). After passing the test, you will obtain an official test report with the CMA mark. If non-conformities are found during the test, the institution will provide professional rectification suggestions.

Step 4: Declare and File with Tax Authorities

After obtaining the report, you do not need to test each product specification individually. You can submit one CMA test report for each battery category together with the corresponding Product Detailed List to the competent tax authority for filing or declaration. The product names and specifications on the list must be completely consistent with your financial accounts and sales invoices.

04 Key to Success: Four Advantages of Choosing a Professional Testing Institution

Faced with professional policy requirements and strict testing standards, cooperating with an experienced testing institution can greatly improve the success rate and avoid detours.

1. Accurate Policy & Standard Interpretation

Professional institutions are well-versed in all requirements of Cai Shui [2015] No.16 and subsequent management announcements, able to accurately judge whether your products meet tax exemption conditions, and guide you to prepare a full set of materials complying with tax requirements.

2. Comprehensive CMA Qualification & Testing Capabilities

We have a complete CMA qualification in the battery testing field, ensuring that every report issued is legal, valid and recognized by tax authorities.

3. Efficient Project Management & Communication

Equipped with dedicated customer service to follow up on project progress throughout the process and ensure a smooth testing flow. We can assist you in sorting out product categories and compiling the compliant Product Detailed List, saving you time and effort.

4. Risk Avoidance & Cost Savings

We predict potential "minefields" in testing in advance, provide pre-evaluation or rectification guidance, avoid repeated sample submission, time delays and additional costs caused by unqualified testing, and ensure that you can enjoy tax incentives in a timely manner.

05 Frequently Asked Questions (FAQs)

Q: Do I need a separate test report for each different battery model?

A: No. According to regulations, taxpayers can provide a test report by battery category. For example, if you produce multiple models of lithium-ion storage batteries, you can select representative models for testing to issue one report, and then attach a detailed list of all lithium-ion storage battery products.

Q: What is the validity period of a CMA test report?

A: The tax policy itself does not set a specific validity period for the report, but tax authorities generally prefer to adopt recently issued reports (e.g., within 1-2 years). If there are major changes in product formula or production process, it is recommended to re-test to maintain the validity of the certification materials.

Q: How long does the entire process take and what are the costs?

A: It usually takes 3 to 6 weeks from sample delivery to report acquisition, with the specific duration varying by battery type and complexity of testing items. Costs mainly depend on the battery category and required testing items, and an accurate quotation can be obtained after providing product information.

Q: Our company imports batteries—do we also need to go through this process? How to operate?

A: Yes. The policy clearly stipulates that it is also applicable at the import stage. Importers shall entrust a domestic qualified testing institution to test imported batteries, obtain a CMA report, and declare to the customs for consumption tax exemption based on the report.

For eligible battery enterprises, applying for consumption tax exemption in a timely manner is an important measure to reduce costs and increase efficiency. An authoritative and compliant CMA test report is the golden key to unlocking this policy dividend. Instead of letting profits be eroded by unnecessary tax burdens, take the initiative to comply with regulations and let professional institutions help you complete this critical step.