The new tax reform policy for cross-border e-commerce that we often talk about mostly refers to this document. It was jointly issued by the Ministry of Finance, the General Administration of Customs, and the State Administration of Taxation on March 24, 2016, and made clear provisions on the new tax rates, tax-paid prices, limits, and ID card information authentication for cross-border e-commerce. The following is a paragraph-by-paragraph interpretation of the policy.
Notice on the Tax Policy for Cross-border E-commerce Retail Imports
Cai Guan Shui [2016] No. 18
To the Department of Finance (Bureaus), State Administration of Taxation, Finance Bureau of Xinjiang Production and Construction Corps, Guangdong Branch of the General Administration of Customs, and all directly affiliated customs:
Interpretation: Some people may ask, why should it be sent specifically to the Guangdong Branch of the General Administration of Customs? In fact, the Guangdong Branch is a dispatched agency of the General Administration of Customs, which governs the seven directly affiliated customs in Guangdong. Therefore, the level of the Guangdong Branch is between the General Administration of Customs and the directly affiliated customs. Why set up a branch specifically in Guangdong? Because Guangdong has seven directly affiliated customs, while other provinces generally have only one or two.