Regulatory Challenges Against “Suitcase Trades”
Description: Regulatory Challenges Against Suitcase Trades Bingwan Xiong Renmin University of China, Law School bxiongruc.edu.cn Prof. . . Cross-border Ecommerce Higher Quality Product Assortment Price Discrepancies Delivery Speed Prof. . .
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slide1. Regulatory Challenges Against “Suitcase Trades” Bingwan Xiong Renmin University of China, Law School
bxiong@ruc.edu.cn<br>
slide2. Prof. . . Cross-border
Ecommerce Higher Quality
Product Assortment
Price Discrepancies
Delivery Speed
…<br>
slide3. Prof. . . Suitcase Retail: Major origin and destination countries Janine Nothlichs, Suitcase Retail – The Hidden Cross-Border Trade<br>
slide4. Prof. . .<br>
slide5. Prof. . .<br>
slide6. Four Operational Models of Cross-border Ecommerce
Overseas online shopping
Direct delivery platform
Self-support B2C model
Guide and rebate shopping model Luis Galán, What you need to know about Cross-Border ecommerce for China,
March 25, 2016<br>
slide7. Prof. . . Luis Galán, What you need to know about Cross-Border ecommerce for China, March 25, 2016<br>
slide8. Prof. . . Luis Galán, What you need to know about Cross-Border ecommerce for China, March 25, 2016<br>
slide9. Prof. . . Luis Galán, What you need to know about Cross-Border ecommerce for China, March 25, 2016<br>
slide10. Customs Clearance (delivery speed) Tax Collection (personal postal parcels v. imported goods & articles) Quality Control (China Food & Drug Administration) Compliance to Domestic Law (e..g, composition violation, package labeling) Regulatory Challenges …<br>
slide11. Three Episodes of Regulatory Reforms
1st Episode: 2014-2016, Bonded Areas (Tariff-Free Zones), B2C
1. entry but NOT custom procedure
2. sampling custom inspection of 30% of postal parcels from the Zones
3. postal Tax levied on less-than-1,000 ¥ parcels (rate, mostly 10%)
4. taxpayer: individual shoppers<br>
slide12. 2nd Episode: 2016-2018, “4·8” New Deal
1. value limits
maximum of 2,000 ¥ per single parcel & of 20,000 ¥ per person per year
2. comprehensive tax rates
import duties (rate, 0%)
import value-added tax & import consumption tax (70% of statutory tax rate)
3. taxpayers
Individual shoppers
Withholding agents: e-commerce enterprises & platforms
4. tustom inspection frequency: 100%? “4·8” New Deal has been suspended twice respectively in 2016&17<br>
slide13. 3rd Episode: Cross-border E-commerce Pilot Zones On July 13, 2018, China State Council has newly identified 22 cities as venues for comprehensive cross-border e-commerce pilot zones in an effort to boost cross-border e-commerce, promote opening-up and upgrade foreign trade "Cross-border e-commerce has made rapid and notable achievements since the pilot zones were established and has become a new area of growth for imports and exports," Li Keqiang said, "We should facilitate domestic consumption and at the same time improve export quality in the global market."<br>
slide14. 3rd Episode: 2018-
Comprehensive Cross-border E-commerce Pilot Zones
1. specific implementation by local governments at provincial level
2. entry AND custom procedures
compare: Bonded Areas, entry but NOT custom procedure
stronger custom inspection
Simplification of inspection procedures: custom clearance procedure combined with Food & Drug Administration inspection procedure
Ease to comply with domestic law (e.g., minor composition violation, labeling in Chinese)
3. taxpayers: importers or shoppers?
4. tax rates
comprehensive tax (70% of statutory tax rate)?<br>
slide15. BRICS countries’ efforts to promote “suitcase trade”?<br>
bxiong@ruc.edu.cn<br>
slide2. Prof. . . Cross-border
Ecommerce Higher Quality
Product Assortment
Price Discrepancies
Delivery Speed
…<br>
slide3. Prof. . . Suitcase Retail: Major origin and destination countries Janine Nothlichs, Suitcase Retail – The Hidden Cross-Border Trade<br>
slide4. Prof. . .<br>
slide5. Prof. . .<br>
slide6. Four Operational Models of Cross-border Ecommerce
Overseas online shopping
Direct delivery platform
Self-support B2C model
Guide and rebate shopping model Luis Galán, What you need to know about Cross-Border ecommerce for China,
March 25, 2016<br>
slide7. Prof. . . Luis Galán, What you need to know about Cross-Border ecommerce for China, March 25, 2016<br>
slide8. Prof. . . Luis Galán, What you need to know about Cross-Border ecommerce for China, March 25, 2016<br>
slide9. Prof. . . Luis Galán, What you need to know about Cross-Border ecommerce for China, March 25, 2016<br>
slide10. Customs Clearance (delivery speed) Tax Collection (personal postal parcels v. imported goods & articles) Quality Control (China Food & Drug Administration) Compliance to Domestic Law (e..g, composition violation, package labeling) Regulatory Challenges …<br>
slide11. Three Episodes of Regulatory Reforms
1st Episode: 2014-2016, Bonded Areas (Tariff-Free Zones), B2C
1. entry but NOT custom procedure
2. sampling custom inspection of 30% of postal parcels from the Zones
3. postal Tax levied on less-than-1,000 ¥ parcels (rate, mostly 10%)
4. taxpayer: individual shoppers<br>
slide12. 2nd Episode: 2016-2018, “4·8” New Deal
1. value limits
maximum of 2,000 ¥ per single parcel & of 20,000 ¥ per person per year
2. comprehensive tax rates
import duties (rate, 0%)
import value-added tax & import consumption tax (70% of statutory tax rate)
3. taxpayers
Individual shoppers
Withholding agents: e-commerce enterprises & platforms
4. tustom inspection frequency: 100%? “4·8” New Deal has been suspended twice respectively in 2016&17<br>
slide13. 3rd Episode: Cross-border E-commerce Pilot Zones On July 13, 2018, China State Council has newly identified 22 cities as venues for comprehensive cross-border e-commerce pilot zones in an effort to boost cross-border e-commerce, promote opening-up and upgrade foreign trade "Cross-border e-commerce has made rapid and notable achievements since the pilot zones were established and has become a new area of growth for imports and exports," Li Keqiang said, "We should facilitate domestic consumption and at the same time improve export quality in the global market."<br>
slide14. 3rd Episode: 2018-
Comprehensive Cross-border E-commerce Pilot Zones
1. specific implementation by local governments at provincial level
2. entry AND custom procedures
compare: Bonded Areas, entry but NOT custom procedure
stronger custom inspection
Simplification of inspection procedures: custom clearance procedure combined with Food & Drug Administration inspection procedure
Ease to comply with domestic law (e.g., minor composition violation, labeling in Chinese)
3. taxpayers: importers or shoppers?
4. tax rates
comprehensive tax (70% of statutory tax rate)?<br>
slide15. BRICS countries’ efforts to promote “suitcase trade”?<br>