Frequently Asked Questions

Cross-Border E-Commerce FAQ

What Is China Cross-Border E-Commerce?

China Cross-Border E-Commerce (or CBEC) is a way for international merchants or overseas ecommerce to sell products to China consumers without having the need to set up physical retail presence in China. Any overseas brands with their own ecommerce websites (eg. cosmetics, apparel, jewellery etc.) can use China CBEC channel to sell directly to the consumers.

What regulations should I take note if I want to use CBEC to sell my products?

First, all products using China CBCE channel must fall into the “Goods List” or “Positive List” category. Second, China customs must be able to crosscheck all transactional, payment, and logistics electronic information regarding the purchase and sale of products via CBEC platforms. Lastly, cross-border delivery must comply with customs tax regulations which include each sales order limit amount (RMB5,000) and total allowable purchase amount (RMB26,000) per year for each Chinese consumer.

What is the “positive list”?

The positive list of China’s cross-border imports is a list of goods approved by the Chinese customs that can enter China through the cross-border e-commerce model. You can download the latest full listing here.

What is the customs clearance process?

While the steps can be complex to explain in detail, it generally requires you to do the followings:

1. Pre-register your products with China customs

2. Submit 3 documents to China customs electronically via CBEC platform when your customer make a purchase

3. Customer placing orders must provide China local address and China ID to be verified by customs via CBEC platform

4. Ship your products from overseas warehouse to customs for clearance; then deliver domestically to custom. Alternatively, if you are already using one of the bonded warehouses in China, products will be delivered to customers within 3 days.

How should I choose the cross-border business model for China?

First of all, we do not recommend companies using Universal Postal Union since this is not an official shipping channel for ecommerce business. Choosing the right CBEC model with China bonded warehouse or direct shipping from overseas warehouse will depend on several factors including the type, weight and value of products. Refer to table for Customs and CBEC service models for reference.

What is the tax rate for cross-border e-commerce? How to calculate?

Under China Customs policies, the tariff rate for cross-border e-commerce imported products is temporarily set at 0%, while the import VAT and consumption tax are levied at 70% of the statutory taxable amount.

CBEC Tax Rate = [(Consumption Tax Rate + VAT Rate) / (1 – Consumption Tax Rate)] × 70%.

For common products, the typical tax rate is 9.1%. We have provided a more detailed tax rate table, which you can download here.

 

 

 

Frequently Asked Questions

Product function related

What industries can you serve?

At present, the industries we serve are mainly beauty & cosmetics, maternal & children products, apparel, luxury retail. However some other industries can use our MyMyPanda cross-border e-commerce platform to sell in China too. Contact our experts for details and advice.

Is it possible to use your cross-border e-commerce service without an e-commerce website?

The cross-border e-commerce services we currently provide are generally for customs clearance and taxation of your existing e-commerce website. If you do not have your own ecommerce store, we recommend that you consult our CBEC experts for advice.

Can I use both Direct Delivery and Bonded Warehouses?

Yes, we currently offer free order testing and customized solutions for both logistics methods, you can contact our CBEC experts to arrange for a demo.

https://www.mymypanda.com/talk-to-expert/

Is it possible to cooperate without enabled WeChat Pay and Alipay?

Yes. We understand that you might not enabled WeChat Pay and Alipay on your e-commerce site. Our platform will provide you with support for both payment methods pre-integrated, and since most if not all consumers in China use either WeChat Pay or Alipay, we recommend you adopt China payment options to effectively reach China consumers.

What counts as auto-mapping products?

You can use our feature to auto-map the must-field to meet the requirements of Chinese Customs declaration.

We can automatically identify the correct fields you’ve matched. The ones aren’t matched will display error notification and will not be counted.

ADDITIONAL QUESTIONS

Service and Charge related

Is there an agent specially assigned to help us during the onboarding process?

You can always contact us online or leave your messages for our CBEC expert. Once you’re onboard, we will have a professional project team that will guide you and support you throughout the project.

How can I arrange for a trial?

Before you officially sign up, you can try out our simple free test order on the website and experience our service with regards to the logistic flow. When you’re certain to use our MyMyPanda CBEC platform service, we will arrange a more elaborate trial with your ecommerce site. Please contact our CBEC experts or subscribe to newsletter for updates.

What service features are available in the free trial?

You can place an order for free on our platform and we will provide you with a report on the process flow. The report will also provide information from China Customs, so you can understand the entire customs clearance process and witness how our service is fully compliant with China government regulations. MyMypanda CBEC platform is officially licensed by China government and we are fully authorized to help international brands and merchants comply with China customs and duties for cross-border e-commerce

How do you charge for your service?

Different ecommerce industries have different duties imposed by China customs. On top of that, the quantity, type of goods and weight will have different charges. Nevertheless, the tax and services fees will be lower than other shipping channels. Please contact us and our CBEC experts will provide you a clear and transparent charges for your consideration.

What's the difference between a free test order and getting a trial demo?

A free test order allows you to purchase products directly from MMP’s platform and experience the compliance process for cross-border e-commerce customs clearance in China. This is a simple process that can be tested quickly to see the outcome.

A trial demo will involve more steps as we will place order on your ecommerce website and arrange for the product(s) to be delivered into China for customs clearance & tax compliance. Consequently, we will need to arrange for your products to be registered with China Customs. Thereafter, the end-to-end flow from order, payment, fulfilment & shipping will be carried out. Similarly, we will generate a detail report for you to understand the entire customs clearance workflow. Our report will also provide recommendations on how else can you improve your ecommerce site when you sell to China consumers.

https://www.mymypanda.com/talk-to-expert/

ADDITIONAL QUESTIONS

Others

How to define China's Import Customs Clearance compliance?

Only the compliant B2C companies can find the information after registration in the CHINA INTERNATIONAL TRADE SINGLE WINDOW : https://www.singlewindow.cn.

What is the B2C model tariff standards?

The Chinese government update the customs tax rates regularly, hence, to obtain the latest tax and duties information, you may contact our CBEC experts for details.

What are the requirements for B2C compliance?

The Chinese government’s customs policy is constantly being updated, but all payment, logistics and e-commerce orders must be filed with customs in order to be compliant. We will handle this part of your product registration, so you don’t have to go through the complex process yourself. We have a team of experts doing that on a regular basis for our ecommerce partners. Subscribe to our newsletter and we will keep you updated with the latest information whenever there are new changes in China customs and tax policies. 

https://www.mymypanda.com/talk-to-expert/

What is the difference between direct mail and bonded warehouse logistics methods?

The logistics of direct mail is generally slower (7 to 10 days). For bonded warehouse, your products are shipped in advance for customs clearance, hence, when customer placed an order, the products can be shipped within 3 days. We understand you may have other questions related to how you should choose the right shipping methods. Book an appointment with our CBEC experts and let them advice you in detail.

Can we cooperate without the brand trademark?

Yes, but we recommend that brands register their trademarks in China as early as possible to protect your intellectual property rights. China’s policy is based on  “first-to-file” rule. Additionally, applying for trademark registration in China may take some time for approval due to strict regulations. Contact us and let us help you with this trademark registration soon before its taken.

CONTACT US NOW

Not Found Your Answer? Just Ask Us!