Are you WORRIED ABOUT YOUR IMPORT BUSINESS ?Want to link your business with our Import Services in China?

ARE YOU THE ONE WHO HAVE PRODUCTS BUT DON’T KNOW HOW TO

REACH GLOBAL CONSUMERS ?

YOUR WAIT IS OVER !SFC (Send From China) –

We can build and expand your import/ export business !

You must be thinking • How can your products reach to more and more people

in China or import your foreign products into China?• How we provide you service to grow your import

business ?• Do you want to expand your cross border business ?• Have products but don’t know how to reach globally ?• How your products will reach consumers ?• Not sure which import model suits you?

Do you know –

As you know till date, Chinese Customs Department has designated top seven cities as specialized Cross-Bordere-commerce zones. These cities are - SHANGHAIHANGZHOUNINGBOGUANGZHOUCHONGQINGZHENGZHOU SHENZHENThese are prime destinations in China, which hold a most important role in any cross broader business. Now this is crucial to know why proper channelizing through is important for your import business. We are here to guide you.

KNOW YOUR MARKETThere are more than 18 million Chinese shoppers who buy from overseas online retailers, spending nearly RMB 213.6 billion in 2013. By 2018, China is expected to become the world's largest consumer market, with the number of cross-border online shoppers reaching 35.6 million and generating RMB 1 trillion in sales.The primary models of importing into China are

Business-to-Consumer (B2C)

Business-to-Business-to Consumer (B2B2C)

WHAT NEXT ? How you can benefit your import business from this

market trend ? What and how will you import ?

WANT TO IMPORT INTO CHINA ?Things to be understood if you want to import your goods or products

Personal Postal Articles Tax

This is the import duty imposed on personal baggage or personal postal articles entering into China. These articles shall be limited to reasonable quantities for personal use. Customs shall levy duties on the portion of articles whose value exceeds the duty-free limit. If the mail contains only one inseparable article whose value exceeds the limit, the mail will be cleared as personal article upon verification by the Customs as article for personal use. Exempted for articles with import duties not more than RMB 50.

Tax rates10%: Food & Beverage, Shoes, Bags, Eyewear, Mobiles, Computers, Cameras, etc.20%: Apparels, Watches30%: Luxury Watches (above RMB 10000), Golf Accessories50%: Cigarettes (but not accepting now), Liquor, Cosmetics

DETAILS FOR TAX RATES AND CUSTOMS INFORMATION

TAX-RATE TABLE

REGISTER COMPANY WITH THE CHINESE CUSTOMS

REGISTER PRODUCT WITH THE CHINESE CUSTOMS

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IMPORT MODELS

Business-to-Business-to-Consumer (B2B2C)

Business-to-Consumer (B2C)

Business-to-Consumer (B2C)This refers to transactions conducted directly between a company and consumers who are the end-users of its products. Specifically, Chinese shoppers buy from an overseas online retailer who will pack individual orders before consolidating them for shipping to China. Our company can handle imports via port-of-entries at Hong Kong, Guangzhou and Shenzhen.

Via Hong Kong

Merchant packs individual orders and consolidates them as a single freight to our Hong Kong Warehouse (or request us to collect at the airport/port). We will then transfer from our Hong Kong Warehouse to mainland China. After clearance at the Chinese Customs, the individual orders will be delivered directly to the end-users.

Via Guangzhou or Shenzhen

Merchant packs individual orders and consolidates them as a single freight to an airport/port in Guangzhou or Shenzhen. It stays at the Customs Control Area awaiting for clearance. Merchant submits information to the Customs via electronic filing. After clearance, the designated domestic express courier will deliver the individual orders directly to the end-users.

Business-to-Consumer (B2C)

Suitable For • China-registered enterprises which are selling foreign products

online. • Foreign-registered enterprises to import into China via Hong Kong.• Importing through Shopping agents.• High-value goods (e.g. semi-luxury goods, cosmetics, etc).

Advantages • You don’t have to stock-up in China and therefore reducing

operational or financial risks.• Convenient one-stop declaration and clearance process.• Advertise as "Shipment from Overseas".

Business-to-Consumer (B2C)

　 Hong Kong Guangzhou Shenzhen

Common Features

Import Model B2C B2C B2CInitial-Leg Delivery Consolidate Freight Consolidate Freight Consolidate FreightShip From Overseas Overseas Overseas

Other Features

Customs Clearance Random Inspection One-Stop Declaration & Clearance

One-Stop Declaration & Clearance

ID Info Not Required Required RequiredLast-Leg Delivery HK e-Express EMS Domestic Express Courier Domestic Express CourierPersonal Postal Articles Tax Pay by Recipient Pay by Merchant Pay by Merchant

Shipping Fee More expensive Economical EconomicalTime 5-20 days 2-5 days 2-5 days

Ideal Product Type High-value or semi-luxury goods

Fast-moving consumer goods

Fast-moving consumer goods

Enterprise Type China/Foreign/HK-registered China-registered China-registeredRegister Company Not Required Required RequiredRegister Product Not Required Requited RequiredPackage Weight < 7 KG < 50 KG < 50 KG

Comparing Port-of-Entries

Business-to-Consumer

Process Flow

Merchant packs individual order at overseas

Chinese shopper places an order

online

Merchant consolidates freight to SFC HK

Warehouse

Chinese Customs random inspection & clearance

EMS delivers order

SFC processes individual orders & pastes shipping labels

Shopper receives order & pays Personal Postal Articles Tax

VIA HONG KONG

Chinese shopper places an order

online

Merchant consolidates freight to Guangzhou or Shenzhen Airport/Port

Shopper receives order

Merchant packs individual order

at overseas

Domestic express courier delivers order

Customs clearance, merchant pays tax

Business-to-Consumer Process Flow

Via Guangzhou or Shenzhen

Business-to-Consumer Operations

• Registers company with the Customs.

• Registers product(s) with the Customs.

• Integrates system.• Uses OMS for orders &

inventory management.

Submits information to the Customs via electronic filing.Collects orders & pastes shipping labels.Helps to pay Personal Postal Articles Tax.Arranges delivery with domestic express couriers.

Business-to-Business-to-Consumer (B2B2C)

• Prior to selling online, the retailer sends a bulk of foreign products to a Customs Bonded Warehouse for storage (or request us to collect at the airport/port and transfer to the Customs Bonded Warehouse). When a Chinese shopper buys online, the warehouse will fulfill the order and prepare it for Customs clearance, including paying the Personal Postal Articles Tax. After clearance, a domestic express courier will deliver the order directly to the end-user. The retailer or merchant must be a China-registered enterprise and must register itself and its product(s) with the Chinese Customs.

How this module is helpful for you ?Suitable for:

• China-registered enterprises that sell foreign products online.

• Order value not more than RMB 500.• Consumer products with high repeat purchases (e.g. milk

powder, baby food, etc.).• Established businesses with proven sales records.

Advantages:• Lower cost from bulk purchase.• Lower logistics cost due to consolidated international freight.• Faster turnaround time and delivery time• Faster Customs clearance.

B2B2C Process Flow

Merchant bulk purchases

from overseas

Merchant consolidates freight

to China airport/port

SFC collects & transfers to Customs Bonded

Warehouse, then registers products

Chinese shopper places

order online

Customs Bonded

Warehouse fulfills order

Customs clearance, SFC helps to pay tax

Domestic express courier delivers order

Shopper receives the

order

B2B2C Operations

Registers company with the Customs (B2B2C is for China registered enterprises only).Integrates system. Registers product(s) with the Customs. Arrange freight to Customs Bonded Warehouse.Uses OMS for orders & inventory management.

Collects & stores product(s) in Customs Bonded Warehouse.Fulfills orders & pastes shipping labels.Clearance & helps to pay Personal Postal Articles Tax.Arranges delivery with domestic express couriers.

FAQ Everything you need to know for you

import businessQ1: What are the taxes?A: The Chinese Customs impose import duties on personal postal articles entering China. However, it is exempted for articles with import duties not more than RMB 50. The tax rates are 10%, 20%, 30% or 50%, depending on the product classification. Please refer to the Tax-Rate Table.

Q2: Who pays the Personal Postal Articles Tax?A: If the parcel is imported via Hong Kong, then the recipient will pay the tax upon receiving it. If the recipient refuses to pay, then the parcel can be returned to our Hong Kong Warehouse. On the other hand, if the parcel is handled by the Customs Bonded Warehouse in mainland China, then the merchant will have to pay the tax first before it can be released to the domestic express courier for delivery.

Q3: My e-commerce company is foreign-registered (including Hong Kong), can I use Customs Bonded Warehouse?A: Please contact our salesperson to for information related to this question.

Q4: My e-Commerce company is China-registered, can I use Customs Bonded Warehouse?A: Besides registering your company with the Chinese Customs, you must also have an active web-store (or a storefront in a 3rd-party online marketplace) and have actual sales transactions.Q5: What do I need to do prior to import?A: If you are importing via Hong Kong, then you need to pre-pack the individual orders and consolidate them as a single freight to our Hong Kong Warehouse (or request us to collect at the airport/port). You also need to submit order information, such as addresses, to our system. We can help to translate addresses from English to Chinese as a paid service. On the other hand, if you are importing via China’s Customs Bonded Warehouse, then you need to pre-register your company and product(s) with the Chinese Customs. All submitted information must be true and valid. Please contact our salesperson if you are not sure what documents to submit.

Everything you need to know for you import

business

Q6: Do I need to provide the recipient’s ID information?

A: If you are importing via Hong Kong, then you do not need to provide the recipient’s ID information. On the other hand, if you import via Guangzhou/Shenzhen or if you use Customs Bonded Warehouse, then you must provide the recipient’s ID information.

Q7: What about returns/exchange services?

A: Products that have left the Customs Bonded Warehouse cannot go back there again. However, you may arrange the returns to go to a designated address or a normal warehouse instead.

Everything you need to know for you import

business

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