China'S Implementation Of A New Cross-Border Import Tax System Will Usher In A Market For Luxury Goods.

The new import tax system for cross-border electricity suppliers to be implemented in April 8th is not only considered to be losing the dividend policy of some e-commerce platforms, but also seen by overseas media as a hidden function of restricting foreign luxury goods and supporting domestic brands.

According to the forthcoming implementation

The new tax system, with a single paction exceeding 2000 yuan limit and personal annual pactions exceeding the limit of 20 thousand yuan, will be fully taxed according to the general trade mode.

Less than 70% of the value added tax and consumption tax should be paid.

This means that in the past, Hai Tao textile clothing, leather bags, shoes and boots need to pay 10% of customs duties. After paying 30%, more than 10000 yuan watches, the duty rate is 30% before, and then up to 60%; perfume, skin care products and cosmetics, the former tax rate is 50%, and then increases to 60%; the former duty rate of jewelry is 10%, and it will pay 60% later.

Data show that in 2015, the total consumption of Chinese consumers was 1 trillion and 200 billion yuan, and the Chinese consumed nearly 46% of the world's luxury goods.

Although the Chinese contribute so much to global luxury sales, they remain in the Chinese market.

It accounts for about 20%.

The Ministry of Commerce has said many times that it will take measures to reduce import tariffs to curb the outflow of luxury goods.

Since last year, a large number of luxury brands in the Chinese market are in the doldrums. They have also voluntarily reduced prices, pulled down the price gap with the countries of origin and Europe and the United States, and triggered several rounds of panic buying.

After Chanel took the lead in price cuts, it led to a wave of luxury brand collectives in China.

Dior, Patek Philippe, tiger Heuer and other luxury brands, top watches.

Follow suit to join the price cuts, the highest price cut to 40%.

In addition, fashion products and light extravagant products with a single paction below 2000 yuan limit will be taxed in accordance with 70% of the value-added tax (17%) and the consumption tax (20%). Therefore, the former tax rate will be reduced, for example, the cosmetic duty rate below the limit will be reduced from 32.9% to 32.9%, and the wrist duty rate below the limit will be reduced from 30% to 25.9%.

Therefore, after the implementation of the new customs tax, the most expensive import cost is the luxury goods with a price exceeding the quota.

Among them, high-end watches and jewellery are the most.

Take 5000 yuan of jewelry as an example, after adjusting the tax rate, the tax price will be as high as 8000 yuan, or 45%; with the 20 thousand yuan wrist watch as an example, the tax rate after adjusting the tax rate is 32 thousand yuan, or 32%; and 3000 yuan of bags and shoes and clothing increased 18%.

The analysis suggests that the implementation of the new customs policy may wipe out the efforts made before the luxury industry.

Zhou Ting, director of the luxury goods industry and President of the Institute of wealth quality, said that international brands, luxury goods agents, industry suppliers and consumers will not be able to return.

The signs of warm spring in the luxury sector will return to the original form, with a sharp chill.

"Even more, for the luxury sector, there will be a two-way loss both at home and abroad."

Zhou Ting has decided that whether it is luxury goods, or personal purchase, it will be hit.

As for the light luxury brand that does not exceed the limit of 2000 yuan, there may be some positive effects in the short term, but the long-term grasp of the opportunity to live in the Chinese market requires a very systematic operation.