Briefly, the current Cross Border eCommerce regime, initially launched in 2014, permits overseas sellers to sell consumer goods directly to Chinese consumers through certain registered e-commerce platforms (e.g., Tmall.hk, JD.com). The qualifying products can be imported into China on an expedited basis at reduced import tax rates, as compared to the goods imported through the ordinary import channel. The products are either shipped from overseas or stored in a bonded warehouse in China. Aside from the benefits that have already been made available and will continue to apply, the New Cross Border eCommerce Regulations issued Jan 1 2019 create certain new benefits to strengthen the incentives to purchase through the CBE channel. 

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An increasingly popular option is to ship products in bulks from overseas to bonded warehouses in China. The basic requirement here is that the warehouse needs to be located in a Free Trade Zone. Being able to store and clear goods without the necessity of registering or filing with Chinese authorities is a clear advantage. Products can move freely in the free trade zones and be transported back overseas without the necessity to pay any taxes. Duties are only paid before customs clearance. The tax rates for the bonded model are comparably low to traditional imports as you can enjoy a 30% ‘discount’ of the traditional import rates.

The direct shipping mode is when with the personal parcel (e.g. when using CN Post, DHL) and the EMS model, you ship your products directly from overseas. A clear distinction and benefit with the direct shipping model is that packages don’t necessarily need to be checked or taxed. That will only happen in case the customs do a random check and spot the package.  A VAT will then be passed on to the end customer at the local post office, before the package can be collected. To read further on the direct shipping model, please read further. 

WEBINAR SERIES: Company, Audit, Tax and Employee Compliance in China

Have you developed corporate governance in your China company? Do you have control over your China organization? Do you have preventative measures against fraud? Are you aware that a China company must perform a year-end audit and complete annual tax compliance filings? Are you familiar with the deadlines of the annual government inspections? Do you know how to implement these functions within your organization?

Woodburn Accountants & Advisors is offering a series of COMPLIMENTARY webinars on all these subjects. We will provide you with information and tools to enrich your China business skills and enhance your market entry efforts to achieve sales success on the Chinese market. Join us from December 16-18 2019 from 9.30am to 10.30am GMT. To register click here.

WEBINAR SERIES: Distribution of goods and services to China

Are you marketing to Chinese consumers? Do you need tips on how to market to the Chinese? Have you registered your brand name? Have you protected your products and services? Are you looking to setup an efficient distribution structure? Are you looking to buy and sell goods in China, but are not sure how to do this?

Woodburn Accountants & Advisors is offering a series of COMPLIMENTARY webinars on all these subjects. We will provide you with information and tools to enrich your China business skills and enhance your market entry efforts to achieve sales success on the Chinese market. Join us from January 20-23 2020 from 9.30am to 10.30am GMT. To register click here.

WEBINAR SERIES: Human Resource compliance in China

Can you hire in China without a legal presence? What are the critical labor and employment law questions for us to know? Is it difficult to terminate employees in China? How can you prevent fraud occurring amongst your employees? Do you know about the visa requirements for foreigners? Are you familiar with the individual income tax regulations in China? Do you know the mandatory social insurance requirements?

Woodburn Accountants & Advisors is offering a series of COMPLIMENTARY webinars on all these subjects. We will provide you with information and tools to enrich your China business skills and enhance your market entry efforts to achieve sales success on the Chinese market. Join us from February 23-27 2020 from 9.30am to 10.30am GMT. To register click here.