General Administration of Customs: Taxation of imported goods - Guangzhou Dingdong International Logistics Co., Ltd.

The new regulations of the General Administration of Customs to adjust the management of inbound and outbound personal postal items have been formally implemented. Items that have been imported into China for goods subject to import duty of more than 50 yuan will be taxed in full in accordance with the value of the goods. With the adjustment of this policy, the customs will not only strictly supervise the mailed items, but also comprehensively increase the inspection of passengers' articles and avoid the loss of state taxation. Overseas purchasing may face a reshuffle.

Customs new regulations: 50 yuan is the standard line for the collection of quotas

According to the latest regulations of the General Administration of Customs of China, since September, if the import duty of goods entering China is more than 50 yuan, all taxes will be taxed according to the value of the goods. The exemption amount is reduced from the current 400 to 500 yuan to 50 yuan.

For some people who believe that the regulation "will increase the cost of overseas purchasing", the relevant person in charge of the Supervision Department of the General Administration of Customs retorted that China has different management requirements for different regulatory objects such as goods and articles that are different for imported goods. Goods purchased overseas are not goods, but goods. For goods, regardless of the value, you need to pay taxes according to the regulations.

He said that at the beginning of the founding of the People's Republic of China, there was a shortage of goods. The total amount of articles entering and leaving the country through the postal channel was small and the content was single, mainly for personal belongings. In order to take care of the overseas Chinese, China has given a certain amount of tax-free concessions to inbound and outbound personal postal items.

Previously, the taxation of personal postal items was carried out in accordance with the immigration tax exemption rules for personal items issued in 1994. According to the regulations, the limit for personal items sent or sent to Hong Kong and Macao is 800 yuan, and the tax allowance is 400 yuan; the personal items sent or sent to other regions are limited to 1,000 yuan, and the tax allowance is 500 yuan.

Significant changes in the nature of mail, lack of consumer protection

The relevant person in charge of the Supervision Department of the General Administration of Customs said that most of the incoming mail is no longer a gift from friends and relatives. The nature of inbound and outbound mail has shifted to the nature of transactions. Recently, online shopping, mail order, overseas purchasing and other businesses have developed rapidly. Some lawless elements attempted to split the imported goods into multiple votes, falsely report as personal items, use the personal goods tax allowances, and enter the country through postal and express mail channels to evade supervision. This kind of illegal act not only causes the loss of national tax revenue, but also evades the state's control over imported goods, so that related goods can flow into the domestic market in the absence of safety, sanitation and quality control, and consumers cannot obtain the protection they deserve.

He also said that some overseas purchasing merchants have been found to attempt to hoard goods before implementing a new management policy on September 1.

The person in charge said that in the future, if the personal inbound and outbound articles exceed the prescribed limit, they should go through the formalities of returning or go through customs clearance procedures in accordance with the provisions of the goods. However, there is only one item in the postal parcel and it is inseparable. After being examined, it is personally owned and can be cleared according to the provisions of personal items.

For passengers' own use of goods, the General Administration of Customs of China stipulates that if the resident passengers carry a total value of 5,000 yuan or less and the non-resident passengers carry a total value of less than 2,000 yuan, the customs shall release the tax exemption.

Buyers who sell goods "tax evasion" some products led the rise

Less than a week before the implementation of the new regulations for the management of inbound and outbound personal postal items by the General Administration of Customs, there were media reports that many overseas shopping websites and buyers/sellers were rushing to ship goods ahead of time, with prices of imported milk powder and cosmetics leading the surge. In response, sellers explained that 'the new regulations have increased the cost of overseas purchasing.' However, a relevant official from the Supervision Department of the General Administration of Customs stated that overseas purchasing involves profits and must be taxed according to regulations.

In the days leading up to the new regulations, prices of imported milk powder and cosmetics—key hot items on websites—have risen by 5%-20% compared to pre-regulation levels. According to an overseas purchasing seller, 'Under the General Administration of Customs regulations, the tax rate for mailed imported cosmetics is as high as 50%, and the dutiable value for items like perfume, eye cream, and lotion is set at 100 yuan each. This means the previous allowance of 500 yuan could cover 10 perfumes, but now it only covers one.' Despite the price hikes, sales have not declined.

According to a survey by Liberation Daily, in mid-to-late August, overseas purchasing transactions showed a 'blowout' trend. In one imported milk powder online store, total sales in the second half of July were 82 units. In the first ten days of August, they soared to 307 units—a nearly threefold increase. From August 16 to 26, sales reached 368 units, with one customer suddenly purchasing 34 cans of imported milk powder at once. The cosmetics 'battlefield' was even crazier: a shopkeeper specializing in Clinique cosmetics purchases said sales of the brand's signature 'small butter' surged in late August. On August 1, some buyers purchased 45 bottles at once; from August 15-19, buyers placed orders to sweep goods four times, totaling 136 bottles in five days, with transaction prices exceeding 25,000 yuan. If the new regulations are implemented, the price of each bottle of 'small butter' is expected to rise by about 40 yuan.

Once the new regulations are implemented, many sellers operating overseas have posted notices on their homepages to inform buyers, stating: 'Purchasing costs have increased sharply, please do not bargain,' 'Customs clearance is difficult, out-of-stock situations are serious, please wait a moment before placing orders,' and 'Refunds are not available.'

According to a report by 'Beijing Youth Daily,' overseas purchasing sellers have adopted a 'funding' approach. One seller mentioned that previously, seven packages of American cranberries could be shipped in a full container for about 740 yuan, mailed as personal items without taxes. After September 1st, they can only be sent in small packages via express channels, which increases courier costs. For seven bags of cranberries, shipping now requires three packages, raising courier fees by 1-2 times, inevitably leading to higher product prices.

However, an industry insider noted that sellers' claims should not be fully trusted, as overseas mailing still carries risks. If customs discovers non-compliance, duties must be paid, and penalties may apply.

Overseas purchasing may face a reshuffle.

Regarding adjustments to personal postal item management policies, customs will not only strictly supervise mailed items but also enhance inspection of passengers' items to prevent loss of state taxation. Overseas purchasing could undergo significant changes.

When media interviewed the Jianguomen Post Office of the Beijing International Post and Telecommunications Bureau, it was noted that inspection of incoming postal parcels has significantly increased. This office handles parcels for Beijing, Hebei, Anhui, Jiangxi, Guizhou, Ningxia, Qinghai, and Gansu, with nearly 10,000 parcels entering daily. There is a customs office here, similar to 50 others in postal facilities. At this post office, every parcel is opened for inspection, while customs conducts risk analysis and targeted tracking on parcels.

It can be said that since the threshold for postal entry goods has been reduced to 50 yuan, some purchasers are unlikely to evade taxes if they split the goods.

For merchants engaged in overseas purchasing, they face a reshuffle in the industry.

When she was interviewed by the media, Ms. Sun, who is engaged in the purchase of clothing brands in Germany, said that she might switch to luxury shopping in the future. “For luxury mailing, if you add one or two hundred pieces of cost, consumers will not care too much, but for clothing, it is equivalent to an increase of half the cost.”

On Taobao.com, many purchasing points have posted price adjustment announcements, while some cosmetics and bag purchase stores have even posted notices of 'suspended business'.

'We are also very embarrassed recently. I don't know what to do in the future.' Some online sellers specializing in 'overseas purchasing' said that the new policy has a greater impact on them and may prompt them to adjust their business direction.

It is reported that the new Customs policy only involves mailing, and does not involve baggage items of transit personnel. Some online businesses are actively contacting and preparing to use flight attendants, tour guides, and international students to carry out tax avoidance by individuals.

At the same time, all kinds of 'airport purchasing' and 'flight attendant purchasing' have sprung up, and some online stores even used the pictures of flight attendants as 'shopping tricks' to attract customers.

Compared with the urgency of other 'overseas purchasing' people, these 'flight stewardess purchasing' operators are very calm: 'Our price is definitely advantageous. In the future, the supply will be sufficient. You can collect our stores.' Some stores even said: 'Our price will not be adjusted after September, and it must be 'tax-included price'.'

Attachment: Announcement No. 43 of 2010 of the General Administration of Customs (related matters concerning the adjustment of management measures for personal and postal items in and out of the country)

In order to further standardize the supervision of inbound and outbound personal postal items and to take care of the reasonable needs of the recipients and senders, the relevant matters are hereby announced as follows:

1. If an individual mails an entry into the country, the Customs shall levy an import tax according to law, but if the amount of the import tax is less than RMB 50 (including 50 yuan), the Customs shall exempt it.

2. Items sent by individuals or sent to Hong Kong, Macao and Taiwan are limited to RMB 800 each time; items sent or sent to other countries and regions are limited to RMB 1,000 each time.

3. If an individual mails in or out of the country exceeds the prescribed limit, he shall go through the formalities for returning the goods or go through customs formalities in accordance with the provisions of the goods. However, there is only one item in the postal parcel and it is inseparable. Although it exceeds the prescribed limit, if it is personally used by the Customs, it can be cleared in accordance with the provisions of personal items.

4. Commercial mails for import and export of postal goods shall be cleared in accordance with the provisions of the goods.