Cross-Boarder Trade when exporting to China. (跨境)

Chinese government started levying excise tax on foreign consumer starting from January 1st, 2019. This is new policy called 跨境, which is China's own cross-border trading. CBT is to replace The rise in Chinese CBT is originated as platforms such as Alibaba, Kaola, JD are developing infrastructure of e-commerce system from fin-tech to delivery. This system is to ease regulation of general trade and it is form of new and legal trade. There are four benefits using CBT in trade with China.

1. Fighting with smugglers
The Chinese government has to impose tariffs on cross-border logistics transactions, but smugglers are interrupting it. The government wants to get rid of them by strictly regulating to those parties who did not register as an official business.
Therefore, the Chinese government designated CBT possible product lists and levied unified tax rates of 9.1% by registering as a white list and minimizing customs clearance lists.

2. Logistics
CBT transaction method is divided into individual special delivery and bonded area. It can be selected according to volume of transaction, enabling more efficient operation and management of logistics costs.

3. Risk hedge
Items must have FDA such as CIQ during general trade method (bulk trade) but CBT do not require authorization since it is traded in small amount. Unlicensed products are allowed in small amount.

4. Security
Since CBT is permitted by government, it has a safe transaction management of buyer information, payment method, and delivery detail.