Where Is The Space For Tariff Reduction To Cross Border Electricity Providers?

Recently learned that, following the downward adjustment in June 2015

After the commodity tariff, in early January 2016, the government further expanded the scope of tax reduction for imported goods and lowered the provisional tariff rate of 16 consumer goods, including luggage, clothing, scarves, stalls, vacuum thermos cups and sunglasses.

After tax reduction, bags and hair are made.

The provisional import duty rate for the suit is 10%.

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The temporary import duty rate of the blankets is 8%, the provisional import tariff of vacuum thermos cups is 12%, and the sunglasses are 6%.

Most categories fall by more than 50%.

After such a substantial tariff reduction,

Is there any room for model existence?

After tax reduction, the standard product is still more expensive than cross-border electricity supplier.

Lin Qinghua, the founder of the star wardrobe, pointed out that tariffs are only a small part of the general trade tax, and only when tariffs are lowered, the overall tax effect is not so great.

It is understood that in the general import trade tax, in addition to customs duties, businesses still need to pay value-added tax. When a commodity is priced at A yuan overseas and the domestic price is B yuan, its general trade tax should be: A * X. tariff rate% +B * 117% * value-added tax% - (A+A * tariff rate%) *% value added tax.

From the above formula, it can be found that the general trade tax is jointly affected by the tariff rate and the value-added tax rate. Tariff reduction will reduce the general trade tax, but businesses still need to pay the relationship of value-added tax. Besides taxes and fees, general trade needs to add insurance and pportation fees, so the tariff rate has a limited impact on the import cost.

Take urine pants as an example. Although the tariff on diapers is reduced to 2% this time, the tax rate is still around 20% after adding VAT.

Compared with the current price tag on diapers, milk powder and other products sold on cross-border e-commerce platform, because of the amount of 50 yuan, so the product normally imported through the cross-border electricity supplier mode will pay 0 yuan for domestic taxes, and the price of cross border urine pants will still win over the general trade.

The advantages of cross-border electricity providers are more convenient for commodity access and commodity inspection.

However, not all cross-border electricity providers have absolute price advantage over general trade.

In fact, last June and January this year, most of the tariff reductions were classified as clothing and skin care products. These categories had a postal tax of up to 50% and easily exceeded 50 yuan, so when the tariff was lowered, the price advantage of purchasing such products across cross-border electricity providers would be less obvious.

But Zhang Zhe, director of Xinyi technology cross border logistics, said that the tax rate is only one of the advantages of cross-border electricity providers. Apart from the tax rate, the commodity access and the commodity inspection process are two other advantages of cross-border electricity providers.

"In terms of access to commodities, many products require various kinds of complex licences when importing from general trade, and even some products are not able to enter China without cross-border electricity providers. Compared with cross-border electricity providers, commodity inspection has higher cost of general trade and commodity inspection, and the recommended time is longer."

Wu Sheng Xing, vice president of the luxury goods business, shows that the mode of customs clearance is largely determined by categories and business models, and the tax rate is only one factor.

"Standard" products usually follow the general import or bonded mode, while non standard products are more direct mail.

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Tax reduction benefits domestic luxury industry

For the significance of this tariff reduction, CEO Sun Yafei, a luxury electric business developer, believes that the reduction of tariffs is not aimed at cross-border e-commerce, but is aimed at a large number of overseas shoppers.

"When the Chinese do not consume abroad and consume overseas, the domestic consumption environment will become worse. The Chinese agent of the brand will also cancel the agency because it can not complete the sales task.

"Sun Yafei said," when the tariff is lowered, the brand will have reason to reduce the price in the domestic market.

This will keep China's consumption in China.

"She pointed out that in fact, in the 2014 year of the year, only 500 billion yuan was purchased overseas by Chinese consumers in the luxury industry, while the total amount of luxury goods purchased in China was only 1800 billion yuan.

Among them, the main reason for this group of people to go shopping abroad is the international price difference. The luxury import tax is about 30% to 50%, plus the division of agents, which means that domestic sales are double the price of overseas.

In fact, since China began to lower tariffs on some imported products in June last year, major luxury brands have also implemented a "price reduction" strategy in China.

At the end of July 2015, luxury brand Prada announced price adjustment to many regions including China, and clothing, luggage and other main commodities were in the price adjustment.

In addition, the international brands of Shiseido, SK-II and L'OREAL have also been cut down one after another.

South Korea's cosmetics SKINFOOD has even cut its price range by more than 40%.

Sun Yafei believes that cross-border electricity suppliers can now be divided into two categories:

The first category: China does not import goods from abroad.

The second category: domestic goods, purchased from other sources abroad, acquire lower purchasing prices and earn profits by lowering prices.

Sun Yafei pointed out that since the tariff has dropped, the brand side will also reduce the price, which will have a greater impact on the second types of cross-border electricity suppliers, because most of these types of businesses are purchasing agents on C2C, who are mainly earning overseas domestic prices, and domestic prices are falling, and their profits will inevitably decrease.

"For the first category of businesses, the impact is not, but has a catalytic effect.

Tariff increases, consumers can stay at home to buy things, can stimulate domestic consumption environment, such cross-border electricity providers will also be promoted.

"Sun Yafei said.