What is cross-border e-commerce retail import?

According to the provisions of the "Notice on Improving the Supervision of Cross-border E-commerce Retail Imports" (Shang Caifu [2018] No. 486), cross-border e-commerce retail imports refer to the consumption behavior of Chinese domestic consumers who purchase goods from overseas through cross-border e-commerce third-party platform operators and ship them into the country through "online shopping bonded imports" or "direct purchase imports". Cross-border e-commerce retail import (B2C) essentially refers to overseas cross-border e-commerce operators selling overseas products to domestic consumers through cross-border e-commerce platforms, mainly including the following participants:

1. Overseas cross-border e-commerce enterprises, namely cross-border e-commerce retail import operators, refer to overseas registered enterprises that sell cross-border e-commerce retail imported goods from overseas to domestic consumers. They are the owners of the goods and play the role of sellers in terms of legal relations.

2. Domestic consumer refers to the domestic buyer of cross-border e-commerce retail imported goods, and the legal relationship is the role of the buyer.

3. Cross-border e-commerce platform operators, namely cross-border e-commerce third-party platform operators, refer to operators who handle business registration in China, provide web space, virtual business premises, trading rules, deal making, information release and other services for both parties (domestic consumers and cross-border e-commerce enterprises), and set up an information network system for both parties to independently carry out trading activities. Such as Tmall International, Jingdong Global purchase, Suning global purchase, Yantou, honey bud and so on.

4. Domestic service providers refer to those who handle business registration in China, accept cross-border e-commerce enterprises to provide declaration, payment, logistics, warehousing and other services, have corresponding operation qualifications, directly provide payment, logistics and warehousing information to the customs, accept the follow-up supervision of customs, market supervision and other departments, and assume corresponding responsibilities. Such as Alipay, UnionPay, postal express and so on.

Cross-border e-commerce retail import subject compliance

As far as cross-border e-commerce retail import entities are concerned, the most critical is overseas cross-border e-commerce enterprises and cross-border e-commerce platforms. Compliance requirements for the two are increasingly strict, which is reflected in the following aspects:

1. Overseas cross-border e-commerce enterprises. (1) Undertake the main responsibility for commodity quality and safety, and perform the relevant obligations according to regulations. It shall entrust an enterprise to handle business registration in the territory, which shall register at the Customs, bear the responsibility of truthfully declaring, accept the supervision of relevant departments in accordance with law, and bear civil joint and several liability. (2) Bear the responsibility of protecting the rights and interests of consumers, including but not limited to the disclosure of commodity information, the provision of commodity return and exchange services, the establishment of a recall system for unqualified or defective goods, and the liability of compensation for the quality of goods infringing on the rights and interests of consumers. When it is found that there are quality and safety risks or quality and safety problems of related commodities, it shall immediately stop sales, recall the sold commodities and properly handle them to prevent them from entering the market again, and timely report the recall and treatment to the customs and other regulatory authorities. (3) To fulfill the obligation of reminding consumers, jointly with the cross-border e-commerce platform on the product ordering website or other prominent position to provide consumers with risk notification, consumers can confirm the consent before placing an order. The notification shall contain at least the following contents: The relevant commodities conform to the quality, safety, health, environmental protection, marking and other standards or technical specifications of the country of origin, but there may be differences with our standards, and the consumer shall bear the relevant risks; Related products purchased directly from overseas, may not have Chinese labels, consumers can view the product Chinese electronic label through the website; Goods purchased by consumers are for personal use only and may not be resold. (4) Establish commodity quality and safety risk prevention and control mechanism, including quality management of receipt and delivery, quality control in warehouse, supplier management, etc. (5) Establish and improve the quality traceability system of online shopping bonded imported goods, and the traceability information should at least cover the complete logistics track from the foreign place of shipment to domestic consumers, and encourage upstream traceability to overseas shippers and commodity manufacturers. (6) To transmit the electronic data of cross-border e-commerce retail import transactions with electronic signatures to the Customs in real time, and can declare the list to the customs by themselves or entrust agents, and bear the corresponding responsibilities.

2. Cross-border e-commerce platform. (1) The operator of the platform shall handle business registration in China, and register at the customs in accordance with relevant regulations, accept the supervision of relevant departments, and cooperate with follow-up management and law enforcement work. (2) Transfer the electronic data of cross-border e-commerce retail import transactions with electronic signatures to the customs in real time, and review the authenticity of transactions and the authenticity of consumer identities, and assume corresponding responsibilities. (3) Establish management systems such as intra-platform transaction rules, transaction security, consumer rights and interests protection, and bad information disposal. The authenticity of the main identity of the cross-border e-commerce enterprises applying to join the platform shall be reviewed, the main identity information and consumer evaluation and complaint information shall be publicized on the website, and the information of the platform merchants shall be provided to the regulatory authorities. Sign agreements with cross-border e-commerce enterprises that apply to join the platform, and clarify the responsibilities, rights and obligations of both parties in terms of the main responsibilities of commodity quality and safety, protection of consumer rights and other relevant requirements. (4) If the enterprises entering the platform have both cross-border e-commerce enterprises and domestic e-commerce enterprises, an independent block or channel should be established to provide platform services for cross-border e-commerce enterprises and domestic e-commerce enterprises, or to distinguish cross-border e-commerce retail imported goods from non-cross-border goods with obvious signs to avoid misleading consumers. (5) Establish a consumer dispute settlement and consumer rights protection self-discipline system. When consumers purchase goods on the platform and their legitimate rights and interests are damaged, the platform shall actively assist consumers to safeguard their legitimate rights and interests, and fulfill the responsibility of compensation in advance. (6) Establish a commodity quality and safety risk prevention and control mechanism, and timely publish commodity risk monitoring information and early warning information issued by regulatory authorities in prominent positions on the website. Urge cross-border e-commerce enterprises to strengthen quality and safety risk prevention and control, and urge cross-border e-commerce enterprises to recall and deal with goods when quality and safety problems occur, and do a good job in reporting. For cross-border e-commerce enterprises that do not take active recall measures, they can take punitive measures to suspend their cross-border e-commerce business. (7) Establish a risk control system to prevent fake transactions and secondary sales of cross-border e-commerce retail imported commodities, strengthen the monitoring of the same buyer, the same payment account, the same receiving address, the same receiving phone number, and other abnormal transactions such as stealing others' identities to order within a short period of time, and take appropriate measures to control it. (8) According to the requirements of regulatory authorities, effectively manage the products sold on the platform, timely close the display and trading pages of prohibited cross-border e-commerce retail imports on the platform, and report the relevant situation to the relevant departments.

Cross-border e-commerce retail imports are compliant

According to relevant regulations, not all goods can be imported by cross-border e-commerce retail. Goods imported through cross-border e-commerce should meet the following conditions: (1) belong to the List of Cross-border E-commerce Retail Imports, limited to personal use, and meet the conditions stipulated in the cross-border e-commerce retail import tax policy. (2) Through the e-commerce trading platform connected with the customs, the "three orders" of transaction, payment and logistics electronic information can be compared. (3) Transactions are not conducted through the e-commerce trading platform connected with the customs, but the inbound and outbound express shipment operators and postal enterprises can accept the entrustement of relevant e-commerce enterprises and payment enterprises, and undertake the corresponding legal responsibilities to transmit electronic information such as transactions and payments to the Customs. At present, cross-border e-commerce retail imports of goods are implemented in the cross-border E-commerce Retail Imports List (2019 edition), operators should pay attention to the categories of goods in the list of goods, but also focus on the list of "remarks" items, many products are only limited to online shopping bonded imports, there are many products to meet the restrictions of other documents at the same time. In addition, some categories are only limited to specific goods, for example, tax head No. 38249999 "Chemical products and accessories of related industries of chemical industry grade not listed in other tax headings", which clearly states in the remarks that "only steam eye masks, warm baby stickers, warm house stickers, shoulder and neck and accessories". For goods outside the list of cross-border e-commerce retail imports, such as prescription drugs, they cannot be sold through cross-border e-commerce retail imports. At the same time, cross-border e-commerce retail imports are currently regulated according to personal use of imported goods, and do not implement the requirements of the first import license approval, registration or filing of overseas commodities. For example, overseas medical devices sold do not need to go through registration or filing procedures in accordance with Chinese regulations, which greatly improves the convenience and efficiency of transactions.

Cross-border e-commerce retail import tax compliance

Compared with general trade methods, cross-border e-commerce retail imports are subject to special tax collection and management policies. Cross-border e-commerce retail imported goods are subject to customs duties and import value-added tax and consumption tax. Individuals who purchase cross-border e-commerce retail imported goods are regarded as taxpayers. The actual transaction price (including retail price of goods, freight and insurance) is regarded as the customs payment price. Provide tax guarantee to the customs, and bear the corresponding duty and related legal liability. The single transaction limit of cross-border e-commerce retail imported goods is 5,000 yuan, and the annual transaction limit is 26,000 yuan; The increase of the single limit means that more high-priced products can enter the cross-border e-commerce channel, including light luxury clothing, beauty instruments, high-end luggage, high-end health products and so on. For cross-border e-commerce retail imports within the limit value, the tariff rate is temporarily set at 0%; The VAT and consumption tax exemptions for import links shall be cancelled and temporarily levied at 70% of the tax payable by law. When the duty-paid price exceeds the single transaction limit of 5000 yuan but is lower than the annual transaction limit of 26000 yuan, and there is only one commodity under the order, it can be imported from the cross-border e-commerce retail channel, and the customs duty and import value-added tax and consumption tax will be levied in full according to the tax rate of the goods, and the transaction volume will be included in the annual transaction total, but the annual transaction total exceeds the annual transaction limit. It should be governed by general trade. Cross-border e-commerce retail imported goods returned within 30 days from the date of customs release, can apply for tax refund, and adjust the annual total transaction of individuals accordingly. If it does not belong to the cross-border e-commerce retail import model, the operator should implement the general trade tax policy.

Cross-border e-commerce retail import store advertising compliance

Although the cross-border e-commerce regulatory policy does not restrict whether cross-border goods have Chinese labels, it requires that there be Chinese label content in the product web page. Is the advertisement in the web page translated and published according to the origin standard, or should it comply with the relevant laws and regulations of our country? According to Article 2 of the Advertising Law of the People's Republic of China, "This Law shall apply to commercial advertising activities in the territory of the People's Republic of China in which commodity operators or service providers directly or indirectly introduce the commodities or services they promote through certain media and forms." It can be seen that the advertising content released by cross-border e-commerce enterprises on the platform should comply with the provisions of the Advertising Law of the People's Republic of China and the Interim Measures for the Administration of Internet Advertising, and if it belongs to health food, it should also comply with the Interim Measures for the Administration of the Advertising Review of Drugs, medical devices, health food and formula food for Special Medical Use.

In recent years, relevant departments have continuously issued some cross-border e-commerce policies and regulations, which fully reflects the country's attention and determination to promote the development of cross-border e-commerce retail import regulations. In the face of broad business opportunities, operators should make full use of the preferential policies of cross-border e-commerce, but also pay attention to the compliance requirements of the main body, commodities, taxation, advertising and other aspects, only in this way, in order to achieve the sustainable development of cross-border e-commerce business. Operators through non-compliant cross-border purchase methods to sell overseas commodities, light constitute administrative violations, serious smuggling and other criminal crimes, operators must pay attention to the above business compliance issues.