The development prospect of cross-border e-commerce can be expected

Six departments jointly issued a new deal-
The development prospect of cross-border e-commerce can be expected

The first China International Import Expo sent a clear signal to stimulate the import potential and accelerate the development of new formats and new models such as cross-border electronic commerce. The the State Council executive meeting held not long ago decided to continue and improve cross-border electronic commerce’s retail import policy and expand its scope of application.

The Ministry of Commerce, the Development and Reform Commission, the Ministry of Finance, the General Administration of Customs, the State Administration of Taxation and the General Administration of Market Supervision recently issued the Notice on Improving the Supervision of Retail Imports in cross-border electronic commerce (hereinafter referred to as the Notice). On December 7th, the State Council held a routine briefing on the State Council policy. Li Chenggang, Assistant Minister of Commerce, Feng Jinping, Director of the Customs Department of the Ministry of Finance, and Wang Wei, Director of the Port Supervision Department of the General Administration of Customs made authoritative interpretations on relevant policies after the transition period of cross-border e-commerce retail import.

More quality and diversified consumer demand will be met.

"This policy adjustment, for consumers, means that more quality and diversified consumer demand will be better met." In response to a reporter’s question, Li Chenggang said that this is also an inevitable requirement of China’s supply-side structural reform, and it is also a requirement to adapt to the high-quality consumption of residents in the high-quality development stage of the new era.

This regulatory policy for cross-border e-commerce retail import will be officially implemented from January 1st next year. On the basis of zero tariff within the quota for the goods in the cross-border e-commerce retail import list, the import value-added tax and consumption tax will be levied at 70% of the statutory taxable amount, and the scope of goods enjoying preferential policies will be further expanded. 63 tax items with large demand will be added, and the single transaction limit of goods enjoying preferential tax policies will be raised from the current 2,000 yuan to 5,000 yuan, and the annual transaction limit will be raised from the current 20,000 yuan per person per year to 2.5%.

China is the world’s first online retail market, with the largest number of online shopping users in the world. In recent years, the development of cross-border e-commerce retail imports has shown rapid growth. According to customs statistics, in 2017, China’s cross-border e-commerce retail imports reached 56.6 billion yuan, a year-on-year increase of 75.5%.

"Cross-border e-commerce is a new format and a new model. We generally insist on encouraging the development of this format and at the same time adhering to the principle of tolerance and prudence in its supervision." Li Chenggang pointed out that after this adjustment, on the one hand, the regulatory policy is more perfect, on the other hand, the product range is further expanded, and the application of preferential tax policies is wider.

Since May 2016, China has implemented a transitional arrangement of "temporary supervision of personal belongings" for cross-border e-commerce retail imports, which has effectively promoted the stable development of the industry, but there are also problems such as unclear rights and responsibilities of all parties and unstable policy expectations. The new deal after the transition period has removed the word "temporary", which means that this new deal will be a relatively long-term arrangement, which will promote the sustained and healthy development of cross-border e-commerce retail imports.

"Cross-border e-commerce retail imports are different from general trade, mainly to meet the quality and diversified consumption needs of domestic residents, and must be directly facing consumers and limited to personal use. Based on this premise, we clearly supervise the cross-border e-commerce retail imports according to the personal use of imported goods. This is the basis of specific regulatory requirements and the most concerned issue for industry enterprises. " Li Chenggang said.

"online celebrity" goods entered the list, and 22 new pilot cities were added.

Steam goggles, household dust meters, razor blades, sparkling wine, malt-brewed beer, binoculars, electronic game machines, ski boots, roller skates … The Ministry of Finance took the lead in adjusting and improving the list of cross-border e-commerce retail imports and tax policies, adding a total of 63 tax items, mainly involving some food, textiles and clothing, shoes and boots, jewelry, small household appliances, cultural and sports supplies, fitness equipment and other commodity categories, and some "online celebrity".

"In order to meet the needs of domestic consumption upgrading, we have adjusted the list of commodities and selected some commodities with relatively strong consumer demand in recent years." Feng Jinping told reporters, "In terms of transaction limits, the single transaction limit and the annual transaction limit will be raised this time, and the camera will be increased with the increase of residents’ income in the future."

At the same time, further increase support for cross-border e-commerce and expand the scope of policy application. On the basis of the existing 15 pilot cities, the Notice extends the scope of application of the policy to 22 newly approved cities in the cross-border e-commerce comprehensive test area, such as Beijing, to further improve the regional layout, promote the development of the industry, and better meet the consumer demand of residents.

In accordance with the principle of "responsibility", the Notice puts forward specific and clear requirements for the responsibilities of all parties-cross-border e-commerce enterprises bear the main responsibility for commodity quality and safety; Cross-border e-commerce platforms must handle industrial and commercial registration in China and fulfill the responsibility of advance payment; Domestic service providers are entrusted with the responsibility of truthfully reporting; Consumers bear the obligation to pay taxes; Government departments need to monitor the quality and safety risks of cross-border e-commerce retail imports. "Further clarifying the responsibilities of all parties involved in cross-border e-commerce retail transactions will help strengthen post-event supervision and strengthen quality risk prevention and control, which will help better safeguard the legitimate rights and interests of consumers and promote the healthier development of the industry." Li Chenggang stressed.

The future prospects of cross-border e-commerce can be expected, and effective supervision will continue to improve.

According to Wang Wei, from January to October this year, the total retail import and export volume through the customs cross-border electronic commerce platform reached 111.04 billion yuan, an increase of 86%. Among them, imports were 67.18 billion yuan, a year-on-year increase of 53.7%; Exports reached 43.86 billion yuan, up by 173.9%.

"In recent years, China’s total import and export trade has been around 4 trillion US dollars. As a new format, cross-border e-commerce accounts for a relatively small proportion in the total foreign trade plate, but it has grown rapidly. From an international perspective, the future prospects of cross-border e-commerce can be expected." Li Chenggang said.

Cross-border e-commerce retail import is not only a new format and a new topic for China, but also for the whole world. Effectively supervising this new format and new model is actually a process of crossing the river by feeling the stones.

"According to the characteristics of electronic, recordable and traceable cross-border e-commerce retail import transaction information, the Notice clearly requires enterprises to establish and improve quality and safety risk prevention and control mechanisms and commodity quality traceability systems, and truthfully transmit electronic information to the regulatory authorities, and cooperate with the regulatory authorities to carry out quality risk monitoring to prevent and control quality and safety risks." Li Chenggang pointed out that for commodities and related enterprises with quality and safety risk accidents, government departments will also publicize information according to regulations to better ensure consumer safety.

Wang Wei told reporters that in 2016, the General Administration of Customs researched and formulated and released the "Announcement No.26", which clarified the customs supervision measures for cross-border e-commerce. This time, in line with the introduction of the New Deal, the Customs revised and improved the "Announcement No.26", which will be released and implemented in the near future. On the other hand, the national customs has upgraded and improved the e-commerce system according to needs to ensure the healthy and sustainable development of cross-border e-commerce.

"Cross-border e-commerce has the characteristics of rapid development, diversified commodities and rapid renewal. The Ministry of Finance will work with relevant departments to adjust the list of imported goods of cross-border e-commerce in a timely manner according to these characteristics and taking into account the development of cross-border e-commerce, consumer demand and regulatory conditions. " Feng Jinping said.(Reporter zhang yi)