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ECOSS: eCommerce One-Stop Solution

– eCommerce in ASEAN + 3

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ASEAN +3 and China growth

Chinese goods export to ASEAN+3

Export Tax Refund

ASEAN goods export to CHINA

Bonded import (BBC)

Direct purchase import (BC)

China Integrated Tax Policy for Cross-Border E-Commerce

De Minimis value regimes

Q & A

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http://emerging-markets-research.hktdc.com/business-

news/article/Asia/ASEAN-Market-Profile/mp/en/1/1X000000/1X09WKZD.htm

http://economists-pick-research.hktdc.com/business-news/article/Research-

Articles/Modern-Consumerism-in-ASEAN-An-

Overview/rp/en/1/1X000000/1X0A76ZJ.htm

ASEAN is a fast expanding trade bloc in Asia with a growing

economic clout. With a combined population of over 620

million, ASEAN’s aggregate size surpassing US$2.4 trillion, with

average annual GDP growth of around 5% over the past decade.

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http://emerging-markets-research.hktdc.com/business-

news/article/Asia/ASEAN-Market-

Profile/mp/en/1/1X000000/1X09WKZD.htm

Bilateral trade growing by

more than 17% annually

between 1996 and 2016.

Trade between China and the ASEAN has received a boost since

the coming into force of the China-ASEAN Free Trade Area

(CAFTA) agreement.

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China's cross-border e-commerce is also experiencing rapid growth. The Ministry of Commerce predicts that the import and export value of China's cross-border e-commerce will increase to RMB6.5 trillion, representing an annual growth rate of more than 30%.

ASEAN-5 countries to catch up with the vibrant

Chinese and US online retail markets.

ASEAN consumers with strong purchasing power in

the second- and third-tier cities tend to shop online.

This offers great opportunities for e-commerce

companies, in particular SMEs, to supply products

to online platforms there without incurring

substantial capital costs.

http://economists-pick-research.hktdc.com/business-news/article/Research-

Articles/Modern-Consumerism-in-ASEAN-An-Ever-Evolving-Retail-

Landscape/rp/en/1/1X000000/1X0A7HH4.htm

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Chinese government has launched pilot schemes for cross-border

e-commerce in ten cities.

- Optimization inspect procedure

- Encourage the marketing of foreign trade

- Tax concessions

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Chinese goods export to ASEAN+3

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Qualified cross-border e-commerce retail export enterprises are eligible for VAT and consumption-tax refund (exemption) like ordinary foreign trade enterprises.

The policies on VAT and consumption-tax refund (exemption) or tax exemption are applicable to goods exported, except those that the state expressly provides no refund (exemption).

The maximum export VAT refund rate of 17%

Export Tax Refund

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The China government encourages retail export in cross-

border e-commerce, which only involves the following

parties:

ASEAN e-commerce enterprises will be able to increase their

profits by selling goods directly to Asia pacific consumers and

reduced the export costs.

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Bonded import (BBC):

This mode adopts the “stock first, order later” model, ASEAN +3 goods

can store in Chinese customs supervision Cross - border bonded area.

ASEAN goods export to CHINA

http://economists-pick-research.hktdc.com/business-news/article/Research-

Articles/Mainland-Cross-border-E-Commerce-Opportunities-for-Hong-Kong-

Businesses/rp/en/1/1X32LK39/1X0A3HYN.htm

ASEAN goods export to CHINA

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http://economists-pick-research.hktdc.com/business-news/article/Research-

Articles/Mainland-Cross-border-E-Commerce-Opportunities-for-Hong-Kong-

Businesses/rp/en/1/1X32LK39/1X0A3HYN.htm

Direct purchase import (BC):

This mode adopts the “order first, delivery later” model.

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e-Port

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http://economists-pick-research.hktdc.com/business-news/article/Research-

Articles/Cross-Border-E-Commerce-China-Policy-

Update/rp/en/1/1X32LK39/1X0A6AHP.htm

China Integrated Tax Policy for Cross-Border E-Commerce

Personal Postal Articles

Tax

Integrated Tax for Cross-

Border bonded area

15%, 30% and 60%,

depending on type of

goods

Unlimited

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As the Chinese government devotes significant efforts to developing cross-border

e-commerce, launching first-movers and encouraging the formalisation of

overseas online shopping, it is obvious that the sector has huge development

potential.

Inspection procedures for products sold through cross-border e-commerce

platforms are simpler, relative to those associated with general trade, meaning

the time required for product examination and approval is shorter and overall

import and supply chain costs are lower. China Cross- border bonded area is the

only legitimate formal channels into China.

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Country De minimis value "no duty/tax collection" Informal entry threshold Remark

in national currency in USD in SDR in national

currency in

USD in

SDR

Australia 1000 AUD 756 537 1000 AUD 918 652 Considers elimination of de minimis

Brunei 400 BND 295 210 Below 400 BND

Cambodia 50 USD 50 36

China Shipments with duty and VAT

liability

less than RMB 50

8 6 NA

Indonesia 50 USD 50 36 Above

de minimis and

below 100kg

There is a pending draft of Customs regulations

concerning Customs plan

to change de minimis threshold from USD 50

to 100.

Japan 10000 JPY 90 64 201000 JPY 1800 1278

Korea 150 USD (FOB) 150 107 >150USD(FOB) 150 107 Only

personal shipments and samples, except medicine,

herb medicine, wildlife--

‐related products, quarantined items such as

agricultural, live stock and

marine products, nutritional supplement, food , alco

holic beverages, tobacco, cosmetics (only applied

to functional cosmetics, placenta--

‐containing cosmetics, cosmetics containing steroid

s, and hazardous cosmetics), and others. 200 USD 200 142 > 200USD 200 142 Only for trade with USA and Puerto Rico as

per Korea-‐US FTA.

De Minimis value regimes

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Country De minimis value "no duty/tax

collection"

Informal entry threshold Remark

in national currency in

USD

in

SDR

in national currency in

USD

in

SDR

Malaysia 500 MYR 128 91

Philippines 15 PHP 0,33 0 < 500 USD The

Customs Modernisation and Tarriff Act (CMTA) in

creases the de

minimis threshold to USD 200. The CMTA is still

waiting to be signed into law by the Philippines P

resident.

Singapore 400 SGD 296 210 400 SGD 296 210

Thailand 1000 Thai Baht 28 20 Less than 40,000

Thai Baht FOB 1120 795

United

Kingdom 150 EUR (Customs

duties) 170 120

15 GBP (VAT) 21 15

United States 800 USD 800 568 2500 2500 1775

Vietnam 1000000 VND 40 28 No informal New

circular 191, which might be effective in April, will

require

express carriers in Vietnam to comply with the foll

owing: a. Import

shipment with value under de minimis threshold a

nd export shipment with

value under 5 million VND can be declared using

simplified mode in VNACCS system;

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