Analysis of the main operations and compliance risks of cross-border e-commerce Cross-border e-commerce customs clearance operations and compliance

Risk of cross-border e-commerce export returns

Customs survey on enterprises shows that the return rate of cross-border e-commerce export packages is about 5%, among which the return rate of some textile and clothing categories exceeds 10% %, overseas warehouses also have a certain degree of unsalable goods.

After comprehensively considering the value of the goods, return logistics costs, entry tax costs and other factors, cross-border e-commerce export companies often choose overseas discounts, abandonment and other methods to deal with unsalable or returned goods, which will undoubtedly It increases the operating costs of enterprises, affects the motivation of enterprises to expand exports, and restricts the development of cross-border e-commerce.

In view of this, on the one hand, the implementation of customs supervision policies to facilitate cross-border e-commerce export returns should be accelerated, and efforts should be made to solve the problems of "difficulty" and "expensive return" of cross-border e-commerce export goods; on the other hand, , increase efforts to launch customized insurance that adapts to market changes - for example, a cross-border return insurance company promises to insure export companies whether it is cash on delivery in Southeast Asia or overseas consumers canceling orders or returning goods due to EU tax payment conditions. You can get instant claims for "cross-border return insurance".

Cross-border e-commerce overseas warehouse operation risks

As a new business format for foreign trade merchants to reduce costs and increase efficiency, overseas warehouses not only enrich cross-border commodity categories and enhance the competitiveness of Chinese brands going overseas The "sharp weapon" has also become a "business savior" for cross-border merchants during the COVID-19 epidemic. As of the end of 2019, my country’s cross-border e-commerce overseas warehouses have reached more than 1,200. With the introduction and development of the cross-border e-commerce B2B export overseas warehouse model, my country's cross-border e-commerce overseas warehouses will usher in a new wave of growth. However, with the increase in quantity and expansion of scale, overseas warehouses will face competitive pressure and operating risks. It may also increase further.

1 Country-specific policies and regulations risks

For example, in terms of business form, warehouse area, whether it can be split, repackaged, labelled, tax treatment, intellectual property protection, etc., The customs of the import destination country may have different regulations and supervisory requirements.

2 Operation and financial pressure

For example, large initial investment in land leasing, warehouse construction, warehouse leasing, warehouse maintenance, labor costs, miscellaneous expenses, etc., long profit cycle, risk of liquidation, Wrong issuance/missing issuance/incorrect entry leads to profit or loss, lack of scale effect, risks of customs clearance in and out of warehouses, etc.

3 Risk of slow-moving inventory

Industry statistics show that about 70% of cross-border e-commerce companies choose to sell goods at low prices, 19% choose to destroy them, and 11% choose to destroy them. If companies choose other methods, they will reduce overseas warehouse operating income and profitability and increase overseas warehouse operating risks.

Therefore, it is recommended that cross-border e-commerce companies should pay attention to risk prediction and prevention when conducting overseas warehouse business.

1 Develop a flexible overseas warehouse operation model and promote the diversification of risk transfer mechanisms. For example, financing through multiple channels such as government and social capital cooperation, bank borrowings, and securities financing; making full use of transfer prices and flexible payment systems to avoid exchange rate risks; operating virtual overseas warehouses to reduce initial investment pressure.

2 Adopt new cooperation models to improve risk prevention capabilities. For example, actively promote the transformation of overseas warehouses from the primary mode of collection/delivery to a multi-functional "one-stop" logistics transfer center; explore "logistics lines + border warehouses + overseas warehouses", "logistics lines + overseas warehouses" and "cross-border warehouses". Hybrid application models such as e-commerce platform + comprehensive foreign trade services + overseas warehouses; learn from the Amazon logistics service model, and actively expand comprehensive services such as returns and exchanges, transfers, labeling, label replacement, product testing, cartoning, and payment of customs duties and insurance. Sexually versatile services.

3 Actively build an intelligent overseas warehouse system to reduce the risk of wrong shipments and missing shipments; optimize the financial system to facilitate inventory counting and comparison, and timely discover and deal with overstock risks.

Overseas tax risks of cross-border e-commerce exports

With the vigorous development of global cross-border e-commerce, the issue of cross-border e-commerce taxation has become a hot topic around the world. More and more people Countries or regions shall strengthen cross-border e-commerce tax supervision and explore and practice cross-border e-commerce taxation models and paths.

British law clearly stipulates that all goods sold online must pay value-added tax, with the general standard tax rate reaching 17.5% and the preferential tax rate 5%.

Order No. 1861 of 2017 of the Russian Federal Customs Administration stipulates that starting from July 1, 2018, all mailed packages must provide the consignee’s personal tax number and shopping website link to check for duty-free imported goods. Whether it is overage, otherwise the package will be returned to the shipper.

Japan requires cross-border e-commerce companies with more than 10 million yen to register in writing in the country and appoint a tax agent as the agency unit.

On March 21, 2019, Thailand’s new e-commerce tax bill officially came into effect, and business operators who meet the conditions need to pay taxes.

At the end of May 2019, Turkey began to impose import tariffs of up to 20% on e-commerce products and other mailed items, and capped the value of imported goods at 500 euros.

Effective January 1, 2020, Indonesia has significantly lowered the threshold amount of import tax for cross-border e-commerce products from US$75 to US$3 per day.

Since January 1, 2021, the EU has implemented a new value-added tax standardization bill for cross-border e-commerce commodity trade. Its main measures include: expanding the "one-stop" taxation system to the EU and distance sales activities from non-EU countries to the EU, and the cancellation of the import VAT exemption policy for low-priced goods imported from non-EU countries to the EU - in the EU VAT reform, products in the regular price range, whether in overseas warehouses or Direct shipments outside the EU must pay import value-added tax; when the goods are sold, merchants can refund the value-added tax and then pay the corresponding sales tax based on the sales volume.

With the tightening of supervision, the importance of VAT compliance for cross-border e-commerce companies that want to expand into the European market has become increasingly prominent; under the current COVID-19 epidemic, the tax policies of relevant countries or regions have also accelerated adjustments. , cross-border e-commerce companies need to pay attention to changes in value-added tax policies in various countries and prepare for market recovery after the COVID-19 epidemic.

Cross-border e-commerce violations involve a wider range of risks

Compared with traditional general trade, the cross-border e-commerce trade industry chain is longer and has more participants, including the Third-party operating platforms, logistics companies, payment companies, software developers, multi-level supply chain companies, etc.

The "Announcement on Supervision Matters Concerning Cross-Border E-Commerce Retail Import and Export Commodities" requires that platform companies, payment companies, logistics companies, etc. should register with the customs, and for the first time, the above-mentioned companies will be included in the customs management counterparts. category. In addition, the customs has the right to investigate those who participated in the creation or transmission of false transaction, payment, and logistics "three orders" information, facilitated secondary sales, failed to verify the authenticity of consumer identity information, etc., resulting in personal identity information or annual purchase quotas being compromised. Enterprises that misappropriate, conduct secondary sales and other violations of customs supervision regulations will be punished in accordance with the law; those suspected of smuggling or violating regulations will be handled by the customs in accordance with the law; if a crime is constituted, criminal responsibility will be pursued in accordance with the law.

It can be seen that in cross-border e-commerce import and export, ensuring the authenticity of declared information is no longer just a matter for the cargo owner and the customs declaration agency. In addition to e-commerce companies, participants in other links may also constitute the main body of smuggling crimes, such as cargo owners, overseas buyers, customs clearance companies, cross-border e-commerce platform developers, etc. Therefore, in terms of ensuring the authenticity of the "three orders", enterprises in the upstream and downstream links will bear more responsibilities and obligations, which also means they will face greater legal risks and should be more vigilant and careful.

Cross-border e-commerce payment risks

Compared with domestic payments, the fund collection and payment process of cross-border e-commerce involves more regulatory regulations, such as "China The Anti-Money Laundering Law of the People's Republic of China, the Regulations of the People's Republic of China on Foreign Exchange Administration, the Guidelines for Foreign Exchange Administration of Trade in Goods, etc.

Therefore, cross-border e-commerce enterprises should choose qualified third-party payment institutions with a "Payment Business License" for fund collection and payment, settlement and sale of foreign exchange, and ensure that fund collection, payment and foreign exchange settlement and sale behaviors comply with the " "Guiding Opinions on Pilot Cross-border E-Commerce Foreign Exchange Payment Business for Payment Institutions" and other laws and regulations, and strictly abide by other national laws and regulations on foreign exchange management to achieve legal and compliant operations.

Cross-border e-commerce intellectual property compliance risks

As innovation and knowledge have become important driving forces for economic development, countries have strengthened intellectual property protection, and intellectual property disputes have become an important issue in international economic and trade. important content and areas of dispute.

For example, the EU pays close attention to intellectual property issues in international trade. The "Trade Trends in Counterfeit and Pirated Goods" report released by the OECD and the European Union Intellectual Property Office, as well as the EU Customs Intellectual Property Enforcement Report, have great influence internationally.

The EU believes that the global infringement and counterfeit trade is still growing, rising from US$200 billion in 2005 to US$500 billion in 2019, accounting for 3.3% of global trade volume; among which, through cross-border e-commerce express delivery, railway, road transportation, etc. There has been a substantial increase in cases in the channel; and in the EU customs early warning system, Chinese goods are ranked at the "high risk" level.

For another example, at the end of 2019, a nationwide social survey conducted by the Intellectual Property Service Center of the China Council for the Promotion of International Trade concluded that e-commerce platforms have become the hardest hit area for infringing and counterfeit goods. The seriousness of e-commerce infringement and online piracy is also related to the repeated bans on malicious registration or counterfeiting of trademarks, the resolution of patent disputes and the facilitation of market access need to be improved, the laws and regulations for the protection of trade secrets still need to be improved, and judicial and law enforcement penalties need to be strengthened. Further strengthening, etc., juxtaposes the "hot and difficult" problem that needs to be solved urgently in the protection of intellectual property rights in my country.