Certainly. Cross-border e-commerce (CBEC) in China, including sales through platforms like TikTok (Douyin in China), is subject to specific customs duties, taxes, and regulatory policies. Here’s a breakdown of the customs duties and taxes associated with CBEC on TikTok:
- Customs Duties: These are tariffs imposed on goods imported into China. The rates can vary depending on the product category and origin. In many cases, preferential rates are available for products sold via CBEC channels, but there are still some standard rates applied to specific goods.
- Value-added Tax (VAT): China’s VAT is typically charged on imported goods. For CBEC, the government has often provided a reduced VAT rate, but it’s essential to be aware of the exact rate applicable to the specific product category.
- Consumption Tax: Some luxury items or specific categories like cosmetics and tobacco may be subject to a consumption tax in addition to the VAT.
- Positive List: China has a “positive list” for CBEC retail imports, which specifies which products can be imported via CBEC and what their tax rates are. Only products on this list are allowed for CBEC sales, and they benefit from preferential tax rates.
- Bonded Warehousing: One of the common CBEC models involves storing products in bonded warehouses within China. Sales from these warehouses are subject to different tax and customs regulations compared to products shipped directly to consumers from abroad.
- Tax Exemptions: Certain goods sold via CBEC might be exempt from taxes if they fall below a specific transaction value threshold. However, there’s an annual limit on the total value of tax-free goods that an individual can purchase.
- Tax Refunds: For goods stored in bonded warehouses that aren’t sold and need to be returned, there’s a mechanism in place for businesses to claim tax refunds.
- Declaring Goods: All goods sold via CBEC need to be accurately declared to Chinese customs, with all necessary information about the product, its value, and the recipient.
It’s vital for businesses involved in CBEC to stay updated with the latest regulations and tax structures. Given that regulations can change, it’s beneficial for foreign companies to partner with experts or agencies familiar with the CBEC landscape to ensure compliance and optimization of tax liabilities.
PLTFRM is an international brand consulting agency that works with companies such as Red, Tiktok, Tmall, Baidu and other well-known Chinese internet e-commerce platforms. We have been working with Chile Cherries for many years, reaching Chinese consumers in depth through different platforms and realizing that Chile Cherries exports in China account for 97% of the total exports in Asia. Contact us and we will help you find the best China e-commerce platform for you. Search pltfrm for a free consultation!
