What is cross-border direct mail? Cross-border direct mail review

Basic Introduction

Cross-border direct mail means that personal items often need to be transferred for customs clearance. The address you fill in is a foreign address, and then the foreign transfer company packs and labels them. Overseas direct mail means that when you place an order, you directly provide your delivery address. It is a direct shipment and the entire logistics process can be tracked. This model is more suitable for customers who make larger one-time purchases.

The overseas direct mail model is divided into small package direct mail and collection model according to whether the goods are collected.

The small package model is that cross-border e-commerce directly purchases goods from overseas supply chains and ships them to domestic customs through international logistics, and finally reaches consumers;

The cargo collection model is that cross-border e-commerce companies centralize orders through overseas warehouses for purchase, and then use international logistics to arrive at the domestic customs for clearance.

Common direct mail methods

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.

Advantages and disadvantages of cross-border direct mail model

Advantages: No need for transshipment, short time; transparent logistics tracking; no commodity inspection required

Disadvantages: A collection point is required overseas; orders must be generated domestically

Customs processing

Overseas direct mail is divided into three categories at the customs according to the actual situation: items 1, 2, and 3. Items 1 and 2 are personal items. If the value of the items is less than 1,000 yuan, they are tax-free. If the value exceeds 1,000 yuan, the import tax will be levied at 20%. If it is determined to be item 3, that is, trade items (commercial trade entry), it will be subject to 17% value-added tax and tariffs ranging from 0-10%.

References