China's cross-border e-commerce industry has seen a staggering increase in imports and exports by almost 10 times in the last 5 years alone, with the total volume hitting 2.11 trillion yuan in 2022. Shenzhen, in particular, has become the capital of cross-border e-commerce, with an annual output value of over 500 billion yuan. The success is due to the government's support and implementation of favorable policies, such as the Action Plan for Promoting the High-quality Development of Cross-border E-commerce in Shenzhen (2022-2025), subsidies, and incentives for businesses. For instance, Qianhai offers support for cross-border e-commerce import and export business, cross-border e-commerce service enterprises, building e-commerce trading platforms, cross-border e-commerce supervision sites, and improvement of quality and efficiency of cross-border e-commerce enterprises. Read the article to learn all the details!
According to customs statistics, the total imports and exports volume of China's cross-border e-commerce industry has increased nearly 10 times in the last 5 years. In 2022, the total imports and exports volume of cross-border e-commerce reached 2.11 trillion yuan, an increase of 9.8%. According to industrial statistics, the annual output value of Shenzhen's cross-border e-commerce industry has exceeded 500 billion yuan, and the imports and exports volume of Shenzhen cross-border e-commerce in 2022 have exceeded 180 billion yuan, a year-on-year increase of more than 2.3 times, and an increase of about 130 billion yuan over 2021, from these figures alone, Shenzhen has no doubt become "the capital of cross-border e-commerce ".
Such remarkable achievements are a result of the Shenzhen government's support to the cross-border e-commerce industry. In 2022, Shenzhen continued to improve its policy system, and successively formulated and issued a series of favorable policies such as the Action Plan for Promoting the High-quality Development of Cross-border E-commerce in Shenzhen (2022-2025), the Work Measures for Sprinting Cross-border E-commerce Development Goals in Shenzhen in 2022, the Work Plan for the Construction of Shenzhen International Online Live Streaming E-commerce Service Platform, the Construction Plan of Shenzhen Overseas Warehouse Public Information Service Platform, and the Pilot Work Plan for the Sunshine Declaration of Shenzhen Cross-border E-commerce Retail Export Enterprises, to support the continued rapid development of Shenzhen's cross-border e-commerce industry.
Subsidies and Benefits
In addition to a good business environment, convenient and fast customs clearance services, governments at all levels in Shenzhen have also provided various preferential measures and subsidies for enterprises related to the cross-border e-commerce industry. Let's take Qianhai for instance, there are the following policies and benefits available:
1. Support for the development of cross-border e-commerce import and export business.
E-commerce enterprises that carry out cross-border e-commerce "9610", "9710" and "1210" business in Qianhai and will be supported according to their import and export volume. The amount of support for the year is cashed in installments within three years, the proportions are 50%, 30% and 20% respectively, and if the enterprise declares and maintains growth in Qianhai for three consecutive years, an additional 10% reward may be added in the third year.
2. Support for the development of cross-border e-commerce service enterprises.
Comprehensive service enterprises that carry out cross-border e-commerce "1210" warehousing, logistics and customs declaration in Qianhai, with an annual order volume of more than 200,000 orders, may be supported according to the standard of 1 yuan per order, with the maximum amount per enterprise shall be 1 million yuan per year.
3. Support for enterprises to build e-commerce trading platforms.
Enterprises with platform consumer trading as their main business, with an annual consumer-facing transaction volume of not less than 2 billion yuan, or enterprise-oriented transaction volume of not less than 6 billion yuan, may be supported at 0.05% of the transaction amount, with a maximum of 5 million yuan per enterprise per year.
4. Support for the development of cross-border e-commerce supervision sites.
If the cross-border e-commerce supervision station operates within the Qianhai Cooperation Zone, and the annual import and export volume exceeds 50 billion yuan, it may be rewarded according to the proportion of Shenzhen's local declaration, and if the local proportion reaches more than 70%, a one-time reward of 5 million yuan per year may be awarded; In addition, for every 10 percentage points increase, an additional reward of 1 million yuan may be added.
5. Support provided to cross-border e-commerce enterprises to improve quality and efficiency.
In supporting cross-border e-commerce enterprises multi-platform operations with no less than 3 platforms, a sales ratio of more than 20%, and the total annual import and export volume is not less than 200 million yuan, a one-time reward of 500,000 yuan per year may be provided.
For cross-border e-commerce enterprises to build their own brands, if the sales volume of a single brand reaches the top 10 in the annual sales ranking of its category, each brand may be rewarded with 100,000 yuan, with each enterprise to be rewarded with a maximum of 1 million yuan per year.
For cross-border e-commerce enterprises carrying out live broadcasting business, and enterprises that carry out e-commerce live-streaming businesses, if the annual live-streaming sales are not less than 500 million yuan, a one-time reward of 1 million yuan may be given every year.
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D'Andrea & Partners Legal Counsel
D'Andrea & Partners is an international law firm founded in 2013. They have a fairly diverse portfolio of clients ranging from large multi-nationals to small and medium enterprises. They do cross border M&A, dispute resolution and corporate governance matters with a special focus on business relationships between Europe and Asia. They...