Faced with pressure from conventional retailers at home, and the loss of tax revenue, the government is now looking at â¦ Cross-border insights: 1. In addition, the CBEC can also help foster new industrial chains like cross-border logistics, cross-border financial payment, and supply-chain finance, adding impetus to China’s economic growth. In 2018, the value of Chinaâs cross-border e-commerce trade in goods was around 134.7 billion RMB, of which 78.58 billion RMB was from import. 23 Share of products bought on cross-border e-commerce sites in China 2017-2018, by type 24 Share of online shoppers who purchase domestically and cross-border China 2018 E-commerce consumer demographics 26 Number of online shoppers in China 2008-2018 27 Penetration rate of online shopping in China 2008-2018 28 Digital buyer penetration in China 2017-2023 29 Age structure of online â¦ People talk about brands and shop online like never before. Ce site de e-commerce cross border travaille avec plus de 5000 marques sélectionnées dans plus de 80 pays à travers le monde. Yangmatou offers a big range of goods on its site but it is focused primarily on the most popular categories: baby products, beauty products, nutrition products, clothes, shoes, and handbags. Kaola is work as a more traditional distribution network; The platform buy your product and sell them. Required fields are marked *. Cross-border E-commerce in China 5 things to know about e-commerce in China: a quick guide for SMEs . Why? Brands now engage customers and personalise shoppersâ experience through social media in a stiff competition for the consumer dollar. There are different platforms popular among Chinese consumers with different challenges and benefits. In fact, over the last several months, the government has been rolling out policies, including adding new CBEC pilot zones and pilot cities for CBEC retail importation, extending the CBEC retail import list, and lowering tax and tariffs, in a bid to boost CBEC: This article aims to provide you a holistic look at China’s CBEC world. Cross-border e-commerce (CBEC) industry is undergoing major policy changes. Policy makers think that the CBEC trade will help China diversify its trade links in the context of the One Belt and One Road Initiative and reshape international trade patterns amid US-China trade tensions. Now, all foreign retailers are allowed to sell on that platform. Tmall, the giant of e-commerce, JD, Little Red Book, Yangmatou, Wechat store …. The products available on the website have very detailed descriptions to inform the consumer and build trust. What is the import duty and tax liability? The demands for better, safer and cheaper products grow at the same time as the purchasing power of the Chinese population. The Chinese ministry of commerce announced that cross-border e-commerce reached 6.5 trillion yuan in 2016. L'e-commerce cross-border est le pendant coté commerçant du shopping cross-border coté client. “What is Peppa?” : The perfect marketing campaign? Hello Mgolo, Now the country has a total of 86 CBEC pilot cities as well as Hainan island. With... Having suffered through the worst of the COVID-19 outbreak in the initial months of the year, China now offers... China has faced a deluge of international criticism over its treatment of foreign businesses and the perceived... Dezan Shira & Associates helps The platform is relatively new, it was launch in 2014, but, has already a user base of over 25 million people. Post was not sent - check your email addresses! In a move to facilitate CBEC import and export, local CBEC pilot zones are exploring innovative breakthroughs in the management of customs clearance, tax collection and management, foreign exchange supervision, cross-border financial services, and logistics. The 2019 version of this list, which has taken effect since January 1, 2020, contains 92 new taxable items compared with the previous version, including frozen aquatic products, alcohol, and consumer goods. In 2019, the number reached RMB 186.2 billion (US$26.25 billion), five times that of 2015, showing an average annual growth rate of 49.5 percent, according to the official data. Pilot cities which joined the CBEC retail importation program can conduct more convenient import modes like “online shopping bonded import mode” (customs supervision mode 1210) – whereby imported retail goods can be temporarily stored at the bonded warehouse before being delivered to customers. Tmall has recently launched its Tmall Oversea fulfillment specially targeting small and mi-size brand with low awareness in China and small budget. Consumers can experience cross-border e-commerce retail services here. Cross border e-commerce is defined as import and export activities of cross-border trade conducted through e-commerce methods by transaction subjects from different customs borders. According to the STA Announcement on Issues Concerning the Levy upon Assessment of Income Tax on Retail Export Enterprises in CBEC Pilot Zones (STA Announcement  No.36) released in 2019 and taken effect January 1, 2020, for the in-zone e-commerce export enterprises that meet certain criteria – corporate income tax (CIT) can be levied upon verification. In most case, brands are rejected by Tmall (85%). The Chinese cross-border shoppers are mostly coming from the middle class. All of this serves to reduce the trial-and â¦ The CBEC pilot zones are designed to boost China’s import and export businesses (especially export). How do enterprises benefit from these programs? What is Tmall Oversea Fulfillment? If the customs value of a single product exceeds the single transaction limit of RMB 5,000 (US$729) but less than the annual transaction threshold of RMB 26,000 (US$3,791), the item can still be imported via the CBEC retail channel. Pour faciliter les échanges la Chine a mis en place des zones dâéchange relatives au « Cross Border E-Commerce » (CBEC) permettant des transactions et une logistique simplifiées. DIGITAL SOLUTIONS: Website creation, development and audit; social media marketing (including WeChat & Weibo); PR; monthly reports and analyzes by our team of experts. E-commerce is playing an increasingly significant role in cross-border trade in goods and services. My answers is: it depends a lot on your target audience and budget, some apps are more expensive than others China is a key market for cross-border e-commerce as it transitions to a consumption economy fueled by a growing middle class and unlocked spending among rural populations: â¢ Chinaâs middle class is expected to reach 630 million by 2022. â¢ Concerns about product safety feeds demand for imported goods with perceived better quality control. Sorry, your blog cannot share posts by email. Many interesting questions Marketing to China is a website created by Gentlemen Marketing Agency designed to provide fresh insights and a deeper understanding of the Chinese market. Le marché du e-commerce transfrontalier en Chine devrait connaître une croissance significative dans les prochaines années. Pilot cities which joined the program of China’s CBEC retail importation usually overlap with CBEC pilot zones geographically. Update April 8th, 2019: new Cross-border e-commerce regulation brings tax reduction. Since January 1, 2019, the government has increased the duty-free quota on a single transaction from RMB 2,000 (US$291.6) to RMB 5,000 (US$729) and the annual quota per person from RMB 20,000 (US$2,916.2) to RMB 26,000 (US$3,791) for retail imports, according to the Notice on Improving Tax Policies for Cross-border E-commerce Retail Importation (Cai Guan Shui  No.49). ¿what is the best strategy for selling them in China? As we mentioned above, retail imported goods have to be on the “List of Goods under Cross-border E-commerce Retail Importation”. To be noted, under the CBEC retail importation program, the imported retail goods have to fall under the “List of Goods under Cross-border E-commerce Retail Importation” (2019 version), which is also dubbed a ‘CBEC positive list’, limited to personal use, and must satisfy the criteria stipulated in the tax policies for CBEC retail importation. This indefinitely extends the waiver of the pre-importation registration requirements on specified categories of products, including cosmetics, infant formula, health food, and medical devices, which was originally set to expire on December 31, 2018, as long as the goods are on the ‘CBEC positive list’. Individual customers are the import taxpayers. T h e boom in China cross-border e-commerce has been dramatic and exponential. This market will more than double by 2020. For a visualization of the ecosystem, please see the image gallery below. A thing very astonishing: the largest portion of these shoppers are males. China, is called: cross-border e- commerce1 (CBEC) retail import. At the beginning the platform was open only to Australian retailers, so they could sell their products in China. For a single transaction exceeding a certain limit – RMB 1,000 (US$141.3) for mailed item from abroad or RMB 800 (US$113) for items from Hong Kong, Macao, or Taiwan, goods must be cleared and subject to general import taxes (Tariff, VAT, and CT), or they will be returned. This site is also quite accessible to smaller brands hoping to expand to China and is growing quite fast. Cross-border e-commerce keep growing and is expected to reach a 7.5 trillion RMB volume in 2017; 58 million users in China are expected to engage in cross-border transactions in 2017; Cross-border e-commerce market is very fragmented as opposed to local e-commerce market; Cross-border shoppers make frequent purchases between 300 RMB and 1,000 RMB We are a Digital Marketing Agency based in Shanghai. Learn how we helped Feelunique scale its e-commerce operations, starting with a China-optimized cross-border e-commerce website, mobile app, and WeChat mini-program, and later expanding to Tmall, JD.com, etc. Toothpaste in China : a $4.8 billion Market, Search Engines Market Share in China 2020. The cross-border e-commerce market is expected to reach 7.5 trillion RMB in 2017 (this includes both B2C and B2B cross-border e-commerce). Cross-border e-commerce refers to any online international sale of a product or service whether between a business (retailer or brand) and a consumer (B2C), between two businesses (B2B), or between two private persons or consumers (C2C) through an online marketplace platform such as Taobao, eBay or even Airbnb. 2. This figure will considerably improve in the next 5 years. It is mainly classified into B2B and B2C. Basically, a way for any brands to try out the chinese market. Growth is however starting to plateau around 17% (still quite a healthy growth rate). Here are the 14 most commonly asked questions (and answers) about cross border e-commerce! Retailers would be allowed to continue their activities but a new tax on imported products was created. 80% of users on XiaoHongShu are women. Tmall Global, part of Tmall platform and owned by Alibaba Group, is leading the import cross-border e-commerce platform in China. This year, the global online trade is expected to grow to a whopping $1.4 trillion.Cross-border e-commerce accounts for roughly 21% of that. Dezan Shira & Associates´ brochure offers a comprehensive overview of the services provided by the firm. 3. CIT will be assessed and levied with a taxable income rate of 4 percent, namely: Further, if the enterprise meets the conditions of preferential policies for a small low-profit enterprise, the enterprise can enjoy the applicable preferential CIT policies for small low-profit enterprises on top of the aforementioned treatments. E-commerce in China has become part of Chinese consumers daily life. Definition of cross border E-Commerce. Do you have service to join the Tmall TOF (tmall oversea fullfilment ), my cosmetic company would like to try the chinese market? Number of cross-border online shoppers in China 2016-2020. Finally, the evaluation of the results will be important to guide us in the next stages of your development. Besides, payment is made extremely convenient and fast to encourage impulse purchase. We help companies wishing to sell on the Chinese market. GMA analyze Marketing trends and give to professionals the best Tips to succeed in China, with a focus on fast-moving Digital World. China is not a country for Cheap Company . The two most popular overseas goods are cosmetics and baby products (Baby formula for instance). Investing in online advertising and creating quality content will help you develop your e-reputation. If you register to this service, you send your product to Alibaba oversea warehouse and tmall will take care of the rest. Most zones are located in coastal regions like Beijing (1), Shanghai (1), and the provinces of Guangdong (13), Zhejiang (10), Jiangsu (10), Shandong (7), and Fujian (6). All our Update & Tips about Business in China, Scan the Qr Code and get the best of on Wechat, Designed by Elegant Themes | Powered by WordPress. We are a pure Digital Agency based in Shanghai. Meanwhile, the number of end users in China engaging in cross-border transactions. CBEC is becoming a more prominent channel for import and export in China. Currently, Chinese cross-border e-commerce is growing at an estimated annual rate of 20-30%. You have clearly a significant opportunity to do cross-border e-commerce in China. They have more money and are more picky with what they buy. Launched in 2009, Yangmatou is The first mover in China cross-border e-commerce. 1210 refers to “online shopping bonded import mode” and is only applicable in CBEC retail importation pilot cities; 1239 refers to “online shopping bonded import A mode” and is applicable in other cities not in the CBEC retail importation program. If you open the app, you have access to a store as well as visual, influencers, reviews etc. Currently, the bonded warehouse mode involves two customs supervision codes – 1210 and 1239. To fuel this engine of China’s import and export growth, Premier Li Keqiang reiterated the government’s support for accelerating the growth of CBEC and enhancing the country’s international shipping capacity in the 2020 Government Work Report. It has led to strong share price growth of brands that have been particularly favoured by Chinese consumers. It’s a very good perspective for cross-border e-commerce and many platforms are gaining in popularity. The Chinese government is trying to promote CBEC business to stabilize and promote foreign trade. 4. They Trust Us. First, letâs have a look at what cross border E-Commerce means practically and in terms of shipping. For goods mailed into the country by individuals, the electronic information of which can’t be accessed by Customs – the parcel tax will be levied. Please contact the firm for assistance in China at firstname.lastname@example.org. We are dedicated to helping our clients grow in the Chinese market by implementing the most effective digital strategy to offer return on investment. These are stores hosted within this app that is linked to an official account. Chinese consumers often feel that products purchased via cross-border e-commerce platforms guarantee a higher level of quality and offer protection against counterfeit goods (examples include infant milk formula, cosmetic products, handbags etc). The â¦ In case the transaction does not happen through an e-commerce platform linked with the Chinese Customs network, the inbound and outbound courier operator or postal enterprises will undertake the corresponding legal liability – they will need to transmit the electronic information of transaction, payment, and logistics to Customs, according to the Notice on Work Relating to Improved Regulation of CBEC Retail Importation (Shang Cai Fa  No.486). By far, the State Council has approved five batches of 105 comprehensive pilot zones for cross-border e-commerce (CBEC pilot zones), covering almost all the provinces except for Tibet. For example, Hangzhou CBEC Pilot Zone, the first CBEC pilot zone in China, hosts established import e-commerce platforms (like Tmall Global, NetEase Kaola, and JD Worldwide), export e-commerce platforms (Jollychic and club factory), third-party payment platforms (Alipay), logistics companies (EMS, SF Express), and other enterprises providing supporting services, such as credit insurance, for CBEC businesses. Different from general trade, China’s CBEC retail importation program is designed to make it easier to import certain foreign goods for Chinese consumers’ personal use, in order to satisfy the growing domestic demand. Cosmetics and beauty products are very popular on this app. Under certain single and annual transaction limits, retail imported goods on the ‘CBEC positive list’ are deemed as duty-free, and the import VAT and consumption tax (CT) are temporarily levied based on 70 percent of the statutory tax payable. Domestic products are often considered to be inferior to foreign products. Please feel free to comment and share our articles ! So, there are no requirements for license approval, registration, or record filing for first-time importation. The product will need to go through the customs clearance process to be released to the consumer. Netherlands Consulate-General Shanghai | Guidebook China Cross-Border E-Commerce Page | 7 1.INTRODUCTION TO CROSS-BORDER E-COMMERCE In emerging markets, especially with a huge domestic market such as China, consumers may face difficulties when searching for affordable imported goods in their local retail stores. Yangmatou registered over 10.000 daily orders and more than 1 million users. If the income of an enterprise falls under the scope of tax-free income as stipulated in Article 26 of the Corporate Income Tax Law of China, the CIT on such income can be exempted. Kaola.com. After a consumer places an order, customs clearance and delivery will be carried out immediately from the bonded warehouse. Known as cross-border e-commerce, the booming backdoor avenue allows Chinese consumers to buy overseas-manufactured goods online and effectively circumvent the regulatory issues that have stymied access to consumer products from cosmetics to Cognac. This article is adapted from âCross Border e-Commerce in China.âIn this issue of China Briefing magazine, we offer foreign investors a practical guide to selling to China through CBEC.We begin by introducing the market landscape, before diving in to the sectorâs legal and regulatory framework. This app is a bit similar to Instagram with Chinese characteristic. CBEC retail imports are regulated as items imported for personal use and can’t be re-sold. MAU number of major cross-border e-commerce platforms in China 2020, by platform. It sets lower entry standards for overseas brands to benefit from the Chinese market, as the platforms help them to develop marketing strategies, sales channels, and product mix based on their better understanding of Chinese consumers. Lyfen, how China Snacks Leader sells online. We are passionate about marketing in the aptly named ‘mysterious orient’. Today, Chinese consumers want to know what they purchase. The mechanism can achieve information sharing among customs, taxation, foreign exchange, and other government departments, which largely shortens the period of goods export declaration. These shoppers spend an average of $473 each on cross-border purchases. Hello, I would like to know which app is the best to market my purse brand from Latin america. According to the report of the China E-commerce Research center, males represent 62.6% of cross-border e-commerce shoppers. They also said that they plan an annual growth of 30 percent in the next few years with more than 58 million consumers buying via cross-border e-commerce. What is the difference between China’s CBEC pilot zones and pilot cities? Cross-border e-commerce (CBEC) – activities of purchasing or selling products via online shopping across national borders – is gaining momentum in China. Growth is also present in smaller cities. The Hangzhou CBEC Pilot Zone has over ten offline industrial parks for interested companies to settle in. But they are different. To optimize it, your e-reputation must be irreproachable. Do you want to know more about the technicalities of operating on cross border e-commerce in China? 8 Platforms to Promote Your Business In China (update 2020). Meanwhile, it builds up CBEC enterprises’ credit database and risk prevention and control systems, and provides enterprises with more innovative services in financing, guarantee, foreign exchange settlement and sale, and intelligent logistics. Cross-border e-commerce makes up 21% of the total global online trade. They call it “six systems and two platforms” – the “six systems” refer to the information sharing system, financial service system, intelligent logistics system, e-commerce credit system, statistics monitoring system, and risk prevention and control system; the “two platforms” refer to the online integrated service platform and offline industrial park platform. How to localize your Luxury Brand to appeal to Chinese consumers? They are young, around 30 years old. Foreign investors who are looking to tap into China’s CBEC market should stay abreast of the latest developments. On the one hand, China is promoting the cross-border e-commerce channel and lowering tax rate; on the other hand, China is imposing a lot more regulations on the technical integration and data transparency. The site is a mix between a social media app and an e-commerce platform. Le Cross border e-commerce est simplement lâimportation de bien venant de vendeurs de pays étrangers. Brand Case Study: Pixi. E-commerce in China has become part of â¦ Meanwhile, Hangzhou is also a pilot city for CBEC retail importation. Webinaire présenté par Investissement Québec International - Cross-border E-commerce â Step Zero to China There are currently sellers from more than 40 nationalities selling their products through the Kaola platform. Le ministère chinois du commerce a annoncé que le e-commerce transfrontalier atteignait 6 500 milliards de yuans en 2016 (982 milliard de dollars). SEO: The optimization of your referencing will be essential, our team of specialists will take care of your e-reputation, the management of your social networks while setting up an SEO / SEM campaign allowing you to gain places in the ranking of the Baidu Chinese search engine. Time to get yourself a slice of that pie, we say! Chinaâs National Peopleâs Congress is currently reviewing the draft E-commerce Law, which includes a special chapter on cross-border e-commerce. The positive list is expected to continue to expand as the government improves the CBEC regulatory system and domestic consumer demand grows. Possessing foreign items is not anymore just a symbol of wealth but is part of many peoples life style. We are specialists in: E-REPUTATION: Primordial before launching, we work together on your unique selling point, then on the social networks and with the help of PR, we make sure that your image on the networks is totally clean and reliable for the Chinese users. In January 2020, China added 50 cities and the whole Hainan island into the pilot program of CBEC retail importation. The China cross border e-commerce market is expected to grow significantly. Starting from $468 / Year Your email address will not be published. (counterfeiting, dangerous goods, food scandals…). Les réglementations sont spécifiques à chaque pays. Cross-border e-commerce in China E-commerce worldwide E-Commerce in China Imports to China Alibaba Group Statista Accounts: Access All Statistics. and grow their operations. We also maintain offices assisting foreign investors in Vietnam, Indonesia, Singapore, The Philippines, Malaysia, Thailand, United States, and Italy, in addition to our practices in India and Russia and our trade research facilities along the Belt & Road Initiative. Over these limits, consumers will need to pay full general import taxes, including tariff, VAT, and CT. China is taking the lead in the cross-border e-commerce segment, and its cross-border e-commerce business model and regulatory measures might be extended and duplicated to more countries within the RCEP region," said Zhang. XiaoHongShu aka RED is a little different from the other platforms. Kaola.com, a website, launched in 2015, is today the most important cross-border e-commerce platform in China. My hand bags have a high quality and are really beautiful. JD Worldwide, part of JD.com. In the past six years, the proportion of China’s CBEC exports in the country’s total foreign trade jumped from 2.2 percent to 11.25 percent. At the micro level, the CBEC pilot zones are also enabling entrepreneurship, connecting domestic small- and medium-sized companies (SMEs) and local industries with the world. Since April 2019, the parcel tax has been reduced to 13 percent, 20 percent, or 50 percent, depending on the type of goods and can be exempted if the tax is less than RMB 50 (US$7.07).