Q:
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After a cross-border e-commerce vender agreed to refund a returned product by a customer purchased. Is it possible for the customer to write it off from his annual personal usage?
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A:
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According to the Announcement of Supervision and Management on Returning Cross-border E-commerce Retail Import Goods (General Administration of Customs [2020] No.45), after reached an agreement between the vender and customer, an individual customer can only write the amount off his annual usage, if, the vender filed a return to the Customs within 30 days from the release date of the listed goods. As well as, the product has been sent back to a Customs supervised warehouse within 45 days from the release date.
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Q:
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If a product has a higher price than the RMB5,000 limit on single transaction, can it still be imported through cross-border e-commerce platform?
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A:
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Since 1st January 2019, the upper limit on single transaction was raised from RMB2,000 to RMB5,000; on annual limit was raised from RMB20,000 to RMB26,000. If there is only one product on order list, which exceeds RMB5,000 but less than RMB26,000, it is allowed to be imported through cross-border e-commerce platform. However, it will be charged with import value-added tax and consumption tax as if it were imported commercial goods. The transaction amount should be deducted from annual personal usage.
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Q:
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Is it normal that an imported product does not have any Chinese labels but purchased from a cross-border e-commerce platform?
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A:
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According to regulations, cross-border e-commencers have the obligation to inform their customers. A risk disclaimer should be displaced on the website at an attentive place. Customers shall be informed before making a purchase. Customers and e-commencers can log into the website and look for such notice. For example, “this product is purchased directly from cross-border areas, Chinese label might not be available. Customers shall look for the product information through an alternative channel”.
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Q:
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How does the Customs account the discounted price for the goods on cross-border e-commence platforms?
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A:
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According to the Notice (MoF, the Customs, SAT [2016] No.18), the Custom shall take the actual transactional price as the tax-inclusive price. The actual transactional price here refers to the sum of the original product price, delivery fee and insurance fee happened in the transaction.
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Q:
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What is the principle when the Custom accounting the price of a discounted price?
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A:
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1.
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As the actual transactional price rule, the tax-inclusive price shall be based on the original product price, which should not be zero on principle.
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2.
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A fair and transparent principle should be applied to direct discount and cash back. In other words, these discounts should be available to all customers. The Custom shall account the tax-inclusive price base on the original product price.
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3.
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Any deduction from product price by coupon, voucher, or loyalty points used, should not be reflected on the tax-inclusive price. Which should be based on the original product price.
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FAQ
