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Customs says cancellation of cross-border 50 yuan exemption does not violate tariff regulations


Apr 18 2016

Guide: News on April 8th, the cross-border e-commerce tax reform policy was officially implemented starting today, and the "50 yuan tax-free quota cancellation" in the new policy has become one of the hotspots for cross-border players.
News on April 8th, the cross-border e-commerce tax reform policy was formally implemented from today. The "50 yuan tax-free quota cancellation" in the new policy has become one of the hotspots for cross-border players. A few days ago, some media pointed out that according to Article 45 of the "Tariff Regulations of the People's Republic of China," a piece of goods with a customs duty of less than RMB 50 was exempted from customs duties, and cross-border e-commerce companies cancelled the RMB 50 exemption quota or with the Customs Law Contrary. In response to the tax reform policy, customs insiders pointed out that the cancellation of the 50 yuan exemption for cross-border e-commerce does not violate the customs regulations. The relevant provisions in the customs regulations are exemptions for tariffs below 50, not VAT and consumption taxes. The customs duty rate is zero. "The reason why the postal tax can be exempted from 50 yuan is because the customs duties of postal articles and the import tax collected on behalf of the import tax are combined, so it still retains 50 yuan as the starting point." The customs insider said.

It is understood that on the 24th of last month, the Ministry of Finance issued an announcement saying that China will implement the cross-border e-commerce retail import tax policy and adjust the post tax policy from April 8. The New Deal increased the single transaction limit from 1,000 yuan (800 yuan in Hong Kong, Macao and Taiwan) to 2,000 yuan in the postal tax policy, and set an annual personal transaction limit of 20,000 yuan. For cross-border e-commerce retail imports that are imported within the limits, the tariff rate is temporarily set to 0%, and the value-added tax and consumption tax exemption for import links are temporarily levied at 70% of the statutory taxable amount. A single transaction that exceeds the single-time limit, the individual annual limit after the accumulation, and a single indivisible product whose duty-paid price exceeds the 2,000 yuan limit will be fully taxed in accordance with the general trade method. At the same time, a "Cross-Border E-Commerce Retail Import Commodity List" was also developed to meet the needs of daily collection and management operations.

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