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Explain the difference between general trade and

by:VIPUTRANS     2020-09-05
In a general sense, there are three differences between general trade and cross-border trade:
1. Different product 'formulations'
2. Different tax rates
3. The delivery process is different

1. The difference between general trade and cross-border trade-product formula:
As mentioned earlier, in order to comply with domestic food standards, general trade will 'change' the original formula. Let's take the adult whole milk powder in Anjia bags as an example. The 'China Special Edition' milk powder must have a Chinese back label on the back, where the sodium content is 60mg and the calcium content is 200mg. The original version contains 298 mg of calcium and 88 mg of sodium.

2. The difference between general trade and cross-border trade-tax rate:

In addition to product formulations, the most critical advantage of cross-border imports is that channels are short-circuited and there are no middlemen. For general trade imports, China must have an importer, which means that there must be a value-added tax at the import link. And because the channel merchants increase their prices, the prices are usually higher, which can be more than 30% higher than that of cross-border e-commerce imports.

It is understood that the commodity cost of cross-border e-commerce is significantly lower than that of general trade.

3. The difference between general trade and cross-border trade-logistics:

Preparation and delivery process of bonded warehouse:

Bonded warehouses refer to warehouses that store unpaid duties, just like overseas warehouses. After the user makes the payment, he declares to the customs, and after the customs release, the goods are shipped directly from the bonded warehouse, and then tariffs are collected. The advantages of bonded warehouses are to increase the speed of customs clearance, reduce trade costs, and can also re-export at any time, which is convenient and fast, and at the same time can enjoy certain convenience and tax-free policies.

Overseas direct mail delivery process:

Overseas direct mail refers to the direct mailing of goods from overseas to users. The direct mail mode does not need to press the goods, and the goods are shipped directly by overseas suppliers. The goods for overseas direct mail need to pass through the customs of two countries, plus the transportation time, it usually takes a few days to several weeks for the goods to reach the customer.

General trade shipping process:

After the user places an order, the e-commerce platform will generate order data, the payment company will generate payment data, and the warehousing logistics company will generate the waybill data. These are three orders (order, waybill, and payment order). The platform generally entrusts a third-party customs clearance company to generate an import list .

The data of the three orders and the import list are all transmitted to the cross-border customs clearance service platform, and the service platform transmits the data to the management platform (that is, the customs intranet). The 'three orders' collide with the import list data, and the data passes to complete the customs clearance.

After the customs clearance is completed, the customs clearance company feeds back the results of the customs clearance, and the passed orders start to pick and leave the warehouse, and then deliver the goods to the logistics company for delivery, and finally the user signs for the package.

At this stage, the domestic control form is still biased towards the general trade control form, with corresponding traditional path dependence. As for the innovative form of cross-border e-commerce, China is fully able to lead in foreign markets. It should speed up the formation of new forms of control, ensure the convenience of cross-border e-commerce, help cross-border e-commerce to enhance market competitiveness, and seize the main international battlefield.
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