“A thin test report has saved our company millions of yuan in tax expenses every year.” This is a true comment from the CFO of a large lithium battery manufacturer. Many battery enterprises may not fully realize that applying for consumption tax exemption through a compliant test report is a policy dividend that can be directly converted into huge profits.

Faced with China’s consumption tax preferential policy for eco-friendly batteries, numerous manufacturers, contract processors and importers often feel confused: What exactly does the policy stipulate? What kind of report do we need to apply for? And who should we turn to for the testing? This guide will clearly sort out these three core questions and help you smoothly embark on the road of compliant tax savings.

01 Policy Core: 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), which came into effect on February 1, 2015. It aims to encourage the production and consumption of eco-friendly batteries through tax leverage.

The policy clearly stipulates that certain eco-friendly batteries are exempt from consumption tax, while a 4% tax rate is imposed on mercury-containing batteries and lead-acid batteries (commonly known as "storage batteries"). The exemption scope specifically covers the following seven categories of batteries, which is the primary standard for you to judge whether your products are eligible for tax exemption:

Important Note: The policy clearly states that taxpayers must hold a product test report issued by a testing institution recognized by a provincial or higher-level quality and technical supervision department to enjoy the tax exemption. This leads to the next key question: What kind of reports and institutions are recognized?

02 Core Credential: What Is the Only Recognized Test Report?

According to the subsequent implementation guidelines of the State Taxation Administration, the statutory document that must be submitted to enjoy the consumption tax exemption is a CMA-stamped test report issued by a qualified testing institution.

Key Requirements for the Report

1. Report Type: Formal Test ReportIt is an objective certification document based on scientific experiments and data, verifying whether the product meets specific technical standards (e.g., mercury-free, lithium-ion battery type). It is different from general "identification reports" or "analysis reports".

2. Issuing Institution: CMA-Qualified Laboratory

   • What is CMA? CMA (China Metrology Accreditation) is the English abbreviation for the national mandatory accreditation system. In accordance with the Metrology Law of the People’s Republic of China, product quality inspection institutions that issue notarized data to the public must be examined and approved by provincial or higher-level market supervision and administration departments (formerly quality and technical supervision departments) and obtain CMA qualification accreditation.
   • Why CMA is mandatory? CMA is the national mandatory recognition of a testing institution’s corresponding testing capabilities and impartiality. Only CMA-stamped reports have legal effect and can be used as authoritative evidence accepted by tax authorities. Simply put, reports without the CMA seal will not be recognized by tax authorities.

03 Critical Choice: Which Institutions Are Eligible to Issue the Report?

After confirming the need for a CMA test report, choosing the right testing institution becomes a decisive step. Not all laboratories are qualified—you need to verify that the institution meets the two following conditions simultaneously:

Condition 1: Hold a Valid Current CMA Qualification Accreditation Certificate

This is the basic threshold. You need to verify whether the testing institution has the Inspection and Testing Institution Qualification Accreditation Certificate (CMA Certificate) issued by the national or provincial market supervision and administration bureau, and the certificate must be within its validity period.

Condition 2: Battery Testing Capabilities Explicitly Listed in the CMA Certificate Annex

This is the most core and easily overlooked point. A CMA certificate alone is not enough; you must check its Qualification Accreditation Annex, which must clearly list the testing items or standards related to your battery products.

• For example, if you produce lithium-ion storage batteries, the annex should include testing capabilities for GB 31241 (Safety of portable electronic products) or relevant safety and performance standards.
• If applying for tax exemption for mercury-free primary batteries, the annex needs to include relevant standard methods for mercury content testing.

How to Verify the Qualification?

Formal testing institutions should provide clear copies or scanned versions of their CMA certificate and annex upon the client’s request. You can also query their qualification status on the official websites of the State Administration for Market Regulation or local market supervision departments of various provinces and cities.

Beyond Report Issuance: The Value of a Professional Testing Institution

1. Accurate Policy Interpretation: Proficient in Cai Shui [2015] No.16 and tax administration requirements, able to accurately judge product compliance.
2. Efficient Compliant Handling: Guide enterprises to submit samples by battery category, avoiding the tedious process and high cost of testing each model individually, and assist in compiling the Product Detailed List meeting tax bureau requirements.
3. Proactive Risk Avoidance: Identify potential product non-compliance issues in advance through pre-evaluation, provide rectification suggestions, ensure the formal test passes on the first attempt, and avoid waste of time and money.

04 Overall Application Process

After understanding the policy and qualification requirements, the application process itself is clear and efficient:

1. Enterprise Self-Assessment: Confirm the product category against the tax exemption list.
2. Select a Compliant Institution: Entrust a professional institution with complete CMA qualification for battery testing, such as Guangdong Energy Storage Testing Technology Co., Ltd.
3. Sample Submission & Testing: Provide representative samples, and the institution conducts testing in accordance with national standards.
4. Obtain the Report: Receive the CMA test report after the samples pass the testing.
5. Tax Declaration: Submit the CMA report and the corresponding product list to the competent tax authority to complete the tax exemption filing or declaration procedures.

05 Frequently Asked Questions (FAQs)

Q: We have many different battery models—do we need to test each one individually?

A: No. Tax authorities allow testing by battery category. You can select representative models from the same battery category (e.g., lithium-ion storage batteries) for testing to issue a single CMA report, then attach the Product Detailed List of all batteries in the same category.

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

A: The policy itself does not specify a clear validity period, but tax authorities generally accept recently issued reports (e.g., within 1-2 years). If there are major changes in product formula, production process or relevant standards, re-testing is recommended.

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

A: It usually takes 3 to 6 weeks from sample submission to report acquisition, with the specific duration varying by battery type and testing items. Costs mainly depend on the complexity of the testing, and formal institutions will provide a transparent quotation after evaluation.

Battery consumption tax exemption is a tangible industrial preferential policy. The key to enjoying it smoothly lies in taking the correct step of compliant testing. Cooperating with a professional testing institution with complete qualifications and rich experience is not only about obtaining a valid report, but also the best guarantee for you to control policy risks and ensure long-term compliant tax savings.