What is cross-border direct mail? What are the current cross-border direct mail methods in China?

What is cross-border direct mail?

The cross-border e-commerce bonded direct mail model started in 2013, when China started cross-border e-commerce services in eight pilot cities across the country, mainly relying on the cooperation between China Customs and Post to establish a free trade zone. Merchants prepare goods in bonded warehouses in advance, and after consumers place orders, they are sorted into small packages and shipped as personal items after customs clearance. Only the postal tax needs to be paid, which greatly reduces the tax on the import link of enterprises.

There are four direct mail methods commonly used in China:

1. Personal Express

In principle, it is the items that are sent by individuals abroad to individuals in China for their own use, so these items do not need to be registered and will not be subject to the control of the positive detailed list. This is the characteristic of personal express delivery. This also leads to a relatively high tax rate for personal express delivery, with three tax rates of 15%, 30%, and 60% depending on the type of goods. Even with a 50 yuan tax-free credit limit, the overall comparison is still much higher than the comprehensive tax of cross-border e-commerce.

2. BC Direct Mail

BC direct mail, also known as bonded area direct mail, is a method recommended by the country. It is relatively efficient and stable, and is legal and compliant. But the disadvantage is that each order must pay taxes, must be well filed, and is subject to the constraints of the reverse details.

3. EMS direct mail

The advantage of EMS direct mail is that it is relatively fast and stable. For cross-border e-commerce, except for sampling tax, it is generally tax-free. Therefore, its disadvantage is also obvious, that is, the price is relatively high.

4. CC direct mail

The CC direct mail model refers to personal parcels and express mail, which originally complies with the principle of reasonable personal use, so as to facilitate the delivery of personal items within the country. For example, in daily life, Chinese people often send books, clothes and small gifts from overseas to China through post offices or local express companies. Or they buy small things for relatives and friends in China and send them back. Generally, most people use this method.

This is the end of the introduction to cross-border direct mail in this issue. If you want to get more information about cross-border direct mail, please pay attention to it. We will continue to answer your questions~