According to the 2022 China Import Development Report , China’s per capita import has increased by 40 percent in the past decade; and the per capita import of consumer goods has nearly doubled. The categories popular with Chinese consumers include milk powder, health care products, cosmetics, apparel and other luxury goods. Currently, most cross-border e-commerce companies deliver their packages to China customers using Universal Postal Union (UPU) or General Trade method. However, there are some limitations of using UPU and General Trade methods that you might need to know for your business.
Declare your package within 14 days in China
When shipping items into China, you need to declare your package for express mail within 14 days of arrival into China ports. The declaration is usually done by express delivery operators. These are international cargo transportation agents such as DHL/SF/UPS, etc. that are legally registered in China with the Chinese Customs.
Three types of express mail delivery to China
- Class A express mail, which refers to non-commercial mail including document files and receipts.Normally, this kind of express does not need to pay taxes. When using the class A express mail delivery into China, Customs will ask you to submit a class A express mail declaration form, a soft copy of the logistic waybill, and other documents that Customs may require in order to clear custom check.
- Class B express mail, used mainly todeliver personal belonging items to people living in China. When using the class B express mail delivery into China, Customs will ask you to submit a class B express mail declaration form, logistic waybill, receipt’s China ID card and other documents that Customs need for clearance. It is important to note that the Customs department has regulations to restrict or limit on item value and different tax amount will apply to Class B express mail. Package value limitation：The limit value of imported goods from Hong Kong, Macao and Taiwan to individuals living in Mainland is RMB 800 (US$110) each time. While the limit value of goods imported from other overseas countries to individuals in China is RMB 1,000 each time. (US$138) Tax regulations：Personal Postal Tax (个人行邮税) will be applied to the class B express mail. The tax rates are 13%, 20% and 50% depending on the category of products that the package fall under. Below are some tax rates for common categories:
- 13% for food and baby care
- 20% for normal cosmetics, fashion, normal watch,
- 50% for wine, Jewelry, luxury cosmetics*, luxury watch**, etc.
* Luxury cosmetics means unit price higher than RMB 10 per piece (mask) or 10/g (cream) or 10/ml (perfume)
** Luxury watch means watch with unit price over RMB 10,000
- Class C express mail,used mainly to deliver products into China with gross value no more than RMB 5,000 (US $690). When using the class C express mail delivery to China, Customs will ask you to submit a class C express mail declaration form, logistic waybill, entrusted customs declaration agreement, Invoice of goods and other documents needed for Customs clearance.It would be useful to note that General Trade Tax (一般贸易税) will be applied to the class C express mail. General trade tax consists of 3 components of tax.Below example shows the postal & general trade taxes for normal and luxury cosmetics:
- Import tariff: 30%
- Consumption tax: 0% and 15%
- Value Added Tax(VAT): 13%
The overall general trade tax for cosmetics is: 46.9% (normal cosmetics) and 72.8% (luxury cosmetics)
* Luxury cosmetics means unit price item higher than RMB 10 per piece (mask) or 10g (cream) or 10ml (perfume)
** Luxury watch refers to unit price over RMB 10,000
A Faster & Cheaper Option: China Cross-Border E-Commerce (CBEC) Logistics
Apart from the three express mail delivery services to China, the government has been actively promoting a new alternative for overseas merchants to sell direct to China consumers – China CBEC Logistics. With the CBEC B2C shipping method, you can reduce delivery time to customers from 2 to 4 weeks (using Universal Postal Union) down to 2 to 3 days. What’s more, customers pay lower tax with CBEC shipping mode. Below is a reference on the tax rates imposed by China Customs based on different product categories permitted (called positive list) to be shipped under China CBEC logistics mode.
International brands looking to expand their market into China and sell direct to 1.4 billion consumers should consider China CBEC logistics. Indeed, MyMyPanda CBEC platform has been designed to serve this purpose. Through this platform, Chinese consumers can enjoy a better shopping experience on overseas ecommerce stores. MyMyPanda one-stop cross-border e-commerce platform will help overseas merchants solve cross-border logistics, local payment, tax and customs clearance issues. Selling to China has gotten a lot easier, but understanding the government regulations and filing the necessary paperwork are still complex and challenging. And that should not be your responsibility cause MyMyPanda will take of the administrative work so you can stay focus on creatiing the best products for your customers. Speak to our China CBEC logistics experts; and start selling direct to China consumers.