For e-commerce companies, logistics companies, and payment companies, in order to truly understand this industry and cooperate with regulatory authorities to achieve compliance in the process, they must understand the regulatory logic.
What is the current regulatory logic?
To summarize the current regulatory logic in the simplest terms, it is “three-invoice comparison”. This is clearly stated in Article 8 of the General Administration of Customs’ Notice on the Supervision of Cross-border E-commerce Import and Export Goods and Articles No. 56 of 2014:
E-commerce companies or individuals, payment companies, and logistics companies should submit order, payment, logistics and other information to the customs before declaring e-commerce import and export goods and articles.
In theory, the design of mutual verification of the three-invoice data is in place. By matching the orders pushed by e-commerce companies (or individuals), the payment orders pushed by payment companies, and the waybills pushed by logistics companies, the General Administration of Customs (and other regulatory authorities) can grasp the true records of each transaction, and then effectively monitor and prevent any illegal acts such as smuggling and underreporting. Faced with cross-border e-commerce, a new form of business based on the Internet, customs must use information technology to implement supervision, otherwise there will be problems of low supervision efficiency or inadequate supervision. “Three-invoice comparison” is a highly information-based supervision method.
Therefore, we should give a thumbs up to the supervision logic of “three-invoice comparison”. From a global perspective, this should be a first.