Tax Comparison

Traditional Exports to China

For example:

Price of goods: USD$10,000                                                                  

FOB from Los Angeles

Destination: Shanghai

Cost breakdown:

1. Shipping: USD$100

2. Insurance: 3%

3. Tariff: 10%

4. Value Added Tax: 16%

Cross-Border E-Commerce

For example:

Price of goods: USD$10,000


FOB from Los Angeles

Destination: Shanghai

Cost breakdown:

1. Shipping: USD$100

2. Insurance: 3%

3. Tariff: 0% 

4. Value Added Tax: 0%

5. Comprehensive Cross-border E-Commerce Tax: 11.2%

Conclusion

As a result, selling your products through a qualified cross-border e-commerce platform can save you the 10% tariff and discount your VAT tax by 30%. Therefore, instead of paying a 10% tariff along with a 16% VAT, you only need to pay 11.2% comprehensive tax.