How Much Is The Selling Price Of Luxury Goods Higher Than Overseas?

Yao Jian, a spokesman for the Ministry of Commerce, said at a press conference that a survey by the Ministry of Commerce showed that 20 brands of high-end consumer goods, such as watches, bags, clothing, wine and electronic products, were at a premium of 45%, which was 45% higher than that in Hongkong, 51% higher than that in the United States, and 72% higher than that in France.

"This statistic may not be able to completely and accurately reflect the situation, but at least give a signal." Yao Jian said.

"Imports are undervalued by tens of billions of dollars because of overseas consumption".

Yao Jian revealed some international brands. Luxury goods The price is higher than that of foreign countries, which has affected the decision makers. Trade The judgment of balance aroused the attention of Chinese government departments.

"We know that a large number of tourists buy goods back. Some people say that China's individual overseas purchases amount to about 1000 US dollars. With so many overseas tourists from China, the goods he brought back were not counted in customs statistics, which actually led to China. Imported Underestimate the scale of tens of billions of dollars. Yao Jian said.

On the 20 day before the issue of "luxury is more expensive than overseas", Chen Deming, the Minister of Commerce (column), analyzed the reasons for three reasons at the 2011 China Development Summit Forum: first, some overseas markets had no customs duties, such as the implementation of zero tariff policy in Hongkong; two, the distribution system of high-end consumer goods has just been established, with many levels and large expenses, which has increased the transaction costs of high-end consumer goods in the mainland. Three, after the financial crisis, overseas products were discounted and depreciate in their countries and regions in order to promote consumption.

22, on the same issue, Yao Jian specifically referred to the comprehensive import tax rate including customs duties and consumption tax. Yao Jian said that the main reasons for the high price of some international brand luxury goods are three: first, the distribution system and pricing system of transnational corporations are different; two, the type of domestic brand goods is relatively small, and consumers' choice is relatively small; three, the comprehensive import tax rate of some brands is relatively high, including tariff and consumption tax.

"With the improvement of domestic consumption level, the luxury goods that we used to think have become popular consumer goods, so policy formulation and system are facing challenges." Yao Jian suggested that comprehensive measures should be taken, including further creation of China's distribution and operation environment for foreign invested enterprises; reasonable price positioning and sales strategies for multinational corporations and retail companies to the Chinese market; and the Ministry of Commerce, together with the General Administration of customs and the tax department, should improve the domestic sales policy of processing trade products.

According to Chen Deming's previous statement, China is formulating the "12th Five-Year" business logistics plan, "will enable the third party logistics and large chain distribution enterprises to give full play to their role" and reduce the transaction cost of commodity circulation.

"Gradually solving this problem through the further rationalization of the tax system" is one of the latest comprehensive strategies of Yao Jian.

According to the Morning Post reporter, the comprehensive tax burden of imported high-end consumer goods is relatively high in China. Take imported cosmetics as an example, three import duties, consumption tax and value-added tax are required. The import tariff will vary from product to product, ranging from 6.5%~18% to VAT 17%, and consumption tax to 30%, with a total tax of more than 50%.

Yao Weiqun, a researcher at WTO Consulting Center in Shanghai, has been calling for domestic tariffs to be lowered. He said yesterday that improving the processing trade related policies, dredging circulation links and reducing tax burden, the three initiatives mentioned by the Ministry of commerce can better solve the problem of high price of some luxury goods in China, and then play a role in stimulating domestic demand and reducing the surplus.

However, he believes that the high cost of commercial rentals in the first tier cities in China is also one of the factors that lead to higher price of luxury goods. China's pricing of luxury goods involves many deep-seated problems.

　 Solving domestic trade in processing trade

Another analyst pointed out that through the statement of senior officials of the Ministry of Commerce, solving the problem of domestic sales of processing trade will play a key role in relieving the international pressure of China's huge surplus and the domestic pressure of "luxury is more expensive than overseas".

It is understood that processing trade is the main component of China's current trade surplus, and it solves about 40 million jobs. The so-called processing trade domestic sales, will soon be processed through trade exports products, to sell to the domestic market. Since the raw materials used for processing trade are bonded imports, the domestic sales must go through customs formalities and pay taxes to the customs.

Yao Jian 22 explained that China has a large number of processing trade in the domestic manufacturing will be shipped overseas, such as some electronic products, high-end clothing, in accordance with the existing processing trade policy, after processing in China must be exported, and can not be sold in the Chinese market, otherwise the tax will be a problem.

Statistics show that, in 2009, with the shrinking external demand, processing trade became a haven for many processing trade enterprises. In 2009, the National Customs Trade in processing trade was taxed at 30 billion 230 million yuan, a record high.

Despite the contribution of tax and employment, the domestic sales of processing trade have obviously reached the stage of transformation.

20 days ago, Chen Deming mentioned that many international famous brand products were produced in China. Why did they sell again after exporting? This increased both carbon dioxide emissions and logistics costs. He believes that it is necessary to explore ways to sell domestic products exported directly to the domestic market.

In January this year, Jiang Yaoping, Vice Minister of Commerce, revealed in the "second high-level forum on China's open economic development" that the long awaited guidance on promoting transformation and upgrading of processing trade will be introduced as soon as possible, encouraging processing trade to extend to the high end of the industrial chain, extending the domestic value-added chain of processing trade, and steadily promoting the transfer to the central and western regions, and encouraging the concentration of the increment to special regulatory areas. At the same time, "two high and one capital" project will also be more stringent control.

At that time, Jiang Yaoping also revealed that we should study and discuss the special policy of export to domestic sale, which dealt with specific differences in processing trade. "Special policies on individual products will be specially designed to facilitate export to domestic sales."