Cross-border e-commerce retail import refers to the mode of transaction where consumers within China purchase through cross-border e-commerce platforms and transmit relevant electronic transaction data in accordance with customs requirements, subject to cross-border e-commerce retail import regulatory conditions.
I. Entities
Operator (cross-border e-commerce enterprise): Refers to an overseas registered company that sells imported retail goods for cross-border e-commerce from abroad to consumers within the domestic market, and is the legal owner of the goods.
Third-party platform operators (cross-border e-commerce platforms): Refers to entities that handle commercial registration within China and provide services such as web space, virtual business premises, transaction rules, transaction facilitation, and information dissemination for both parties involved in the transaction. Operators who establish information network systems to enable both parties to independently carry out trading activities.
Domestic service providers are responsible for handling business registration within China and are entrusted by cross-border E-commerce companies to offer services such as declaration, payment, logistics, warehousing, among others. Entities with the requisite operational qualifications must provide relevant information regarding payment, logistics, and warehousing directly to customs. Domestic service providers must undergo subsequent supervision by customs, market regulation authorities, and other relevant departments, and are obliged to assume corresponding responsibilities.
Consumers: refers to domestic purchasers of imported retail goods for cross-border e-commerce.
II. Models
Cross-border e-commerce retail imports are categorized into two models: "online shopping bonded import" (customs supervision code 1210) and "direct purchase imports" (customs supervision code 9610).
In the "online shopping bonded import" model, e-commerce companies adopt overseas bulk procurement and batch customs declarations for importing goods. These goods are then stored in special customs control areas or bonded logistics centers. Once consumers place an order and make payment, the goods are dispatched directly from domestic bonded warehouses to the consumers as express parcels.
In the "direct purchase import" model, goods are typically stored in overseas warehouses established by companies outside the country. When consumers place orders, the companies ship the goods from abroad. The goods undergo international transportation and reach China's customs control area, where they are declared for entry. Upon completion of customs clearance procedures, they proceed to the domestic delivery stage.
III. Data
Prior to declaring imported retail goods for cross-border e-commerce, entities involved in cross-border e-commerce (including cross-border e-commerce platform companies or domestic agents, payment companies, and logistics companies) must submit the "three lists" information (transaction information, payment information and logistics information) to customs and are responsible for ensuring the authenticity of the data.
Cross-border e-commerce businesses and platforms must accurately transmit electronic transaction data of cross-border e-commerce retail imports, complete with electronic signatures.
Payment and logistics companies among domestic service providers are required to accurately transmit electronic information on cross-border e-commerce retail import payments and logistics, including electronic signatures.
IV. List of Retail Imports in Cross-border E-commerce
Retail imports in cross-border e-commerce are restricted to the items listed in the "List of Retail Imports in Cross-border E-commerce" and must be strictly adhered to.
Since 2016, the Ministry of Finance, the National Development and Reform Commission, the General Administration of Customs (GACC), and other departments have frequently collaborated to issue announcements that continuously update the "List of Retail Imports in Cross-border E-commerce". Currently, the number of commodity tariff lines included in the positive list has reached 1,476. Most popular online shopping categories such as garments, footwear, cosmetics, skincare products, food and beverages, sports goods, toys and stationery, and electronics are now covered by the list.
In the "List of Retail Imports in Cross-border E-commerce", certain goods are restricted to enter the country exclusively through the 1210 "online shopping bonded import" model. This primarily refers to the animal and plant products and other quarantined items specified in the "List of Animals and Plants, Their Products and Other Quarantine Objects Prohibited from Being Carried or Posted into the People's Republic of China", including various dairy products, eggs, honey, nuts, fresh fruits, dried fruits, spices, rice, plants, meat, cocoa, and more.
Among these regulations, concerning wildlife products, it is separately stipulated that the provisions do not apply to commodities included in the Commodity Catalogue of Imported and Exported Wild Fauna and Flora Species, unless they can provide a Certificate of Non-Catalogue for Imported and Exported Wild Fauna and Flora Species issued by the Endangered Species Import and Export Administration Office of the People's Republic of China. The document management requirements for such commodities are clearly defined.
Furthermore, certain commodities have established purchase limit requirements. For instance, most rice and its derivatives are restricted to the "online shopping bonded import" model, with a personal annual import limit of 20 kilograms.
V. Consumer Identity Verification for Cross-border E-commerce Retail Imports
In accordance with Announcement No. 194 [2018] issued by the General Administration of Customs (GACC) concerning regulatory matters on cross-border e-commerce retail import and export commodities, cross-border e-commerce enterprises and platforms (including cross-border e-commerce platforms engaging in retail import business and domestic agents of such enterprises) are required to verify the authenticity of transactions and the authenticity of consumers' (purchasers') identity information, holding corresponding responsibilities. Should the identity information not be authenticated by the national competent authority or its authorized agency, the purchaser and the payer must be the same individual. Therefore, to ensure seamless customs clearance, it is typically required for cross-border e-commerce retail import goods to have identity proof truthfully uploaded at the time of purchase.
VI. Amount Limit for Cross-border E-commerce Retail Imports
The annual transaction limit for retail imports in cross-border e-commerce is RMB 26,000; with a single transaction limit of RMB 5,000. This means that the value of each purchase cannot exceed RMB 5,000. However, if an order contains only one item, its value may exceed the single transaction limit.
If the total annual transaction amount surpasses the specified annual transaction limit, the items must be returned, or customs clearance procedures should be conducted in accordance with general trade goods regulations.
The personal annual transaction limit is calculated based on the calendar year. The quota is cleared on December 31st each year, and recalculations start from January 1st of the following year.
VII. Taxation Policy for Cross-border E-commerce Retail Imports
According to the "Notice of the Ministry of Finance, the General Administration of Customs (GACC), and the State Taxation Administration on Improving the Taxation Policy for Cross-border E-commerce Retail Imports", when the value of cross-border e-commerce retail imported goods is within the specified limit, 70% of the import stage value-added tax and excise duty will be levied based on the commodity tax rate, with no tax exemption threshold. If the limit is exceeded in a single transaction, but there is only one commodity in the order, the full amount of tariff, import value-added tax, and excise duty will be collected according to the goods tax rate, and the transaction amount will be included in the annual total transaction amount.
VIII. Return Policy for Cross-border E-commerce Retail Imports
According to Announcement No. 45 [2020] of the General Administration of Customs on Regulatory Matters Concerning the Return of Cross-border E-commerce Retail Imported Goods, within this model, domestic agents of cross-border e-commerce enterprises or their entrusted customs declaration enterprises (hereinafter referred to as "return enterprises") can apply to customs to conduct return procedures.
The return enterprises may apply for the return of all or part of the goods included in the original "Customs Cross-border E-commerce Retail Import Declaration List of the People's Republic of China" (hereinafter referred to as the "Declaration List").
The return enterprises must apply for return within 30 days from the release date of the Declaration List and ensure the returned goods are delivered to the original customs supervision site, the original special customs control area, or to the bonded logistics center (Type B) within 45 days from the release date of the Declaration List.
The corresponding tax will not be assessed, and there will be an adjustment to the cumulative amount of the consumers' personal annual transactions.
Disclaimer：The above content is translated from Chinese version of Fuzhou Customs 12360. The Fuzhou Customs 12360 version shall prevail.