The two models generally present “three similarities and three differences”, as follows.
(1) Same tax policy
The two import models enjoy the same preferential tax policies. Generally speaking, compared with ordinary goods, they have greater tax advantages: For cross-border e-commerce goods imported within the individual annual transaction limit, the tariff rate is all 0, and the value-added tax and consumption tax at the import stage are temporarily levied at 70% of the statutory taxable amount. If the same product is imported according to general trade, the tax paid is about 30% of the selling price, while if it is imported according to the cross-border e-commerce method, the tax paid is less than 10% of the selling price. The tax benefits are obvious. However, if the final selling price of the product is very different from the import price, the tax benefits of the e-commerce model are not obvious (taking into account the tax burden of the domestic circulation link as a whole).
(2) Same total consumption (limit) policy
Consumers’ single transaction shall not exceed 5,000 yuan, and the annual transaction limit shall not exceed 26,000 yuan. If only one item is purchased, and the tax-paid price exceeds the single transaction limit of RMB 5,000 but is lower than the annual transaction limit of RMB 26,000, relevant preferential treatment (such as no need to submit a license) can be enjoyed, but the customs duties and import value-added tax and consumption tax must be levied in full according to the commodity tax rate, and the transaction amount will be included in the annual transaction total; if the annual transaction total exceeds the annual transaction limit, it shall be managed in accordance with the general trade requirements and shall not enjoy any e-commerce policy preferential treatment.
(3) Same scope of goods
All imported goods under the two modes are included in the “List of Cross-border E-commerce Retail Import Goods”. The list notes will explain the entry method, annual consumption quantity, and relevant restrictions of some goods (such as grain and frozen aquatic products). For example, some goods are noted as “except for goods included in the “Catalogue of Import and Export Wild Animal and Plant Species”, and some are “Only for online shopping bonded goods”.
Different import modes are suitable for importing different goods. Goods that are used for a long time and suitable for household use, such as milk powder and diapers, are suitable for the online shopping bonded import mode; direct purchase imported goods have a more complete range of categories and a wider selection.
(4) Different geographical scopes of implementation
“Online bonded import” (1210) can currently only be carried out in special areas or logistics centers.
“Direct purchase import” (9610) has no city restrictions and can be carried out in any city in principle.
(5) Different temporary storage locations after entry
“Online bonded import” (1210) and “Online bonded import A” (1239) goods are stored as bonded goods in special areas or logistics centers after import, and the storage time can be up to several months.
“Direct purchase import” (9610) is temporarily stored in the customs supervision operation site and released immediately (some cities are currently carrying out customs supervision operation sites in special customs supervision areas).
(6) Different logistics models
“Online bonded import” (1210) goods are generally shipped in batches to special areas or logistics centers by sea, and then delivered to consumers after domestic consumers place orders. Because the goods are already in stock in China, the response to orders is fast, the transportation time is short, and the comprehensive freight is low.
“Direct purchase import” (9610) is commonly known as the “collection model”, that is, cross-border e-commerce products have been packed in small packages according to each order abroad, and are generally transported to domestic customs supervision work sites through international logistics such as aviation. They are reported to the customs one by one according to the small packages (they may be selected for inspection), and then delivered to domestic consumers after customs release. The goods have a long transportation time, high freight (mainly air transportation), and low timeliness.
In addition, regarding return management, consumers can apply for returns for the above-mentioned models. The “online purchase bonded import” (1210) and “online purchase bonded import A” (1239) models are carried out in China, so the return procedures are simple. “Direct purchase import” (9610) takes a long time because it faces international logistics operations and foreign customs clearance.