Bonded system and its application in cross-border e-commerce

1. Overview of the bonded system

The bonded system is a customs system that allows specific imported goods to suspend the payment of customs duties and other domestic taxes after entering the customs until their destination (domestic sales or re-export) is finally determined. This system not only applies to bonded goods for processing and production, but also includes bonded goods of a commercial nature (such as re-export trade goods) and bonded goods for imported consignment.

2. Characteristics of bonded logistics

(1) System boundary crossing

Bonded logistics refers to logistics activities within a country (region) that are “domestic and outside customs”.

(2) Expansion of logistics elements

In addition to general logistics elements such as transportation, warehousing, information services, distribution, etc., bonded logistics also includes elements such as customs supervision, ports, bonding, customs declaration, and tax refunds.

(3) Linear management

The process of bonded goods from entry to re-export is linear management, rather than the general “point” management.

(4) Efficiency bottleneck

The contradiction between customs supervision efficiency and logistics efficiency makes customs supervision efficiency a bottleneck of the bonded logistics system.

(5) Platform

Bonded logistics is an important part of the supply chain of processing trade enterprises and requires the cooperation of customs, logistics enterprises, ports and other parties.

3. Bonded areas and bonded warehouses

Bonded Zone

The bonded area is a specific area approved by the customs. Imported goods entering the area are exempt from tariffs and are exempt from export taxes if they are re-exported. Activities such as storage, modification, classification, mixing, exhibition, processing and manufacturing can be carried out in the zone.

Bonded Warehouse

Bonded warehouse is a storage place for imported goods approved by the customs. No tax is required for re-export of goods, which facilitates the development of re-export trade.

4. Tax refund and bonded export model

(1) Tax refund policy

The tax refund policy refers to the exemption of VAT in the export process. The input tax on exported goods can be used to offset the VAT payable on domestic sales, and the undeducted portion will be refunded.

(2) 9610 and 1210 modes

9610 mode

Applicable to cross-border e-commerce direct mail exports. Enterprises first push the list, order and logistics information to the cross-border e-commerce service platform. After customs quickly releases it, they can then summarize the tax refund declaration.

1210 mode

Applicable to cross-border e-commerce export goods “consolidated import and export” or “advance stocking”, tax refund upon entering the zone or centralized declaration of tax refund after entering the zone.

5. Cross-border e-commerce customs bonded system

(1) Bonded establishment

Enterprises need to declare valid approval documents and relevant information for processing trade to the customs, and the customs will handle electronic manuals or electronic account books.

(2) Tax suspension

The suspension of tariffs and import taxes at the import stage will help companies reduce cash flow occupation.

(3) Supervision extension

Customs supervision of bonded processed goods runs through the entire process from entry to re-shipment out of the country or formal import procedures.

6. Cross-border e-commerce bonded processing customs supervision model

(1) Physical fence mode

Applicable to bonded areas, export processing zones, bonded port areas, comprehensive bonded areas, etc. The customs implements closed management.

(2) Non-physical fence mode

Use electronic account books or electronic manuals as supervision means, and use enterprises as the supervision unit.

7. Bonded Port Area and Bonded Logistics Park

Bonded Port Area

It has functions such as warehousing and logistics, foreign trade, international procurement, distribution and distribution, international transfer, inspection and maintenance, product display, R&D and manufacturing, and port operations.

Bonded Logistics Park

The main business scope includes storage of import and export goods, simple processing for circulation, value-added services, international trade, international procurement and distribution, international transfer, inspection and maintenance, product display, etc.

8. Bonded import e-commerce supply chain management

(1) Supplier selection

Choose reliable suppliers to ensure product quality and supply capabilities.

(2) Procurement Management

Establish effective procurement processes, including order management, inventory control, and supply chain coordination.

(3) Warehousing and Logistics

Choose the right warehousing service provider and optimize the logistics network.

(4) Customs clearance and delivery

Understand the customs clearance regulations of the target country and choose a reliable customs clearance service provider.

(5) Information management and technical support

Establish a complete supply chain management system and use information technology to optimize supply chain operations.

9. Cross-border e-commerce bonded import BBC model

(1) Bonded warehouse stocking

Merchant will directly clear customs and deliver goods from the bonded area based on the order status of consumers, greatly improving the speed of cross-border online shopping.

(2) Policy Orientation

Import “1210 Bonded E-commerce” is applicable to cross-border pilot cities, while “1239 Bonded E-commerce A” has been fully liberalized.

(3) Business risk

The cost of stocking is high, and the impact of inventory, slow sales and exchange rate is significant.

(4) Resource scarcity

Bonded warehouse resources are scarce, rents are rising, and policy implementation details vary greatly.

Summary

The bonded system and its application in cross-border e-commerce cover many aspects, from bonded areas, bonded warehouses, refund and tax exemption policies to customs supervision of bonded processing. Through reasonable supply chain management, cross-border e-commerce companies can achieve more efficient operations and stronger competitiveness. The supply chain management of bonded import e-commerce includes many key links such as supplier selection, procurement management, warehousing and logistics, customs clearance and distribution, as well as information management and technical support.