Goods Returning to China’s Cross-Border E-commerce Welcomes Favorable Policies

On January 30, China’s three departments collectively issued an announcement on the tax coverage for returned items in cross-border e-commerce. The returned items will likely be exempted from import duties, import value-added taxes and consumption taxes. Moreover, the export duties already collected on the time of export will likely be allowed to be refunded.

In brief, if items despatched by cross-border e-commerce enterprises are returned from overseas to China once more, the tax bureau will refund the export duties already collected earlier than. After this, as well as to freight and customer support working prices, cross-border e-commerce enterprises can additional save tax prices, cut back losses brought on by returns, and enhance turnover effectivity.

According to the most recent information from China’s Ministry of Commerce, China’s cross-border e-commerce import and export scale in 2022 was 2.11 trillion yuan ($312 billion), up 9.8% year-on-year. At the identical time, the brand new enterprise mannequin of e-commerce is displaying some vitality.

In Hangzhou, the place the pilot mission of cross-border e-commerce was first launched, many cross-border e-commerce enterprises have put abroad transactions on the agenda. After the Spring Festival vacation, many retailers have set off for the United States to seize extra orders, and the plan to go to Africa within the first quarter has additionally been placed on the agenda. For overseas commerce and cross-border e-commerce enterprises taking part in worldwide exhibitions and self-organized exhibitions, Hangzhou has put ahead subsidy plans to assist them cut back prices and improve effectivity.

According to Shanghai Customs’ information, in 2022, cross-border e-commerce at Shanghai Port developed strongly, with 152 million export declarations all year long, a rise of 58% year-on-year, rating third in China. Some logistics enterprises additionally began to become involved within the cross-border e-commerce freight enterprise in 2022, and processed hundreds of thousands of orders in lower than one yr. Shipping locations have included the United States, Britain, Japan, Vietnam and others.

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Domestic Internet e-commerce platforms carried out nicely of their world enlargement efforts in 2022. AliExpress, a web-based retail service based mostly in China and owned by Alibaba, attracted many customers from Europe and America within the winter of 2022, many trying to find heating units. Pinduoduo‘s online marketplace Temu had previously occupied first place among downloads of US e-commerce apps. In a series of promotional shopping festivals in Southeast Asia at the end of the year, Alibaba‘s Lazada’s gross sales elevated quickly.

According to Orient Securities’ report, Chinese corporations’ world enlargement has developed into a brand new stage, benefiting from the rise of abroad on-line retail penetration charge. Chinese e-commerce firms have a stable primary capability in commodity and logistics, and their enterprise mannequin will proceed to evolve sooner or later.

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