On Sept. 15, 2021, China Customs issued a notice, in which it announced to fully implement “Central Return Warehouse Mode for CBEC Retail Imports (hereinafter “Central Return Warehouse Mode*” for short) with an immediate effect.
Notes: * Central Return Warehouse Mode has been first carried out in pilot free trade zones. On July 7, 2020, China’s State Council notified all parties to replicate the successful practices of the pilot project, including this mode, from FTZs to other parts of the country. The official notice released by China Customs this time is a supporting measure for State Council’s decision. |
According to the notice, Central Return Warehouse Mode will apply to CBEC products supervised under “online shopping bonded import mode” (supervision code 1210). Stakeholders’ agents in China or their entrusted storage enterprises locating in custom supervision areas can now set up specialized product return spots inside the supervision areas.
What’s the Benefit?
Return of imported CBEC goods is a tricky problem for enterprises. According to existing rules, enterprises’ agents in China shall apply for product return from the customs within 30 days after customs clearance. Besides, only the products, which are returned to the original customs supervision workplace, original specially supervised area or bonded logistic center within 45 days after customs release, can be free from corresponding taxes. Consumers’ annual transaction quota* will be adjusted accordingly as well. (Click here to read the preferential tax policy related to personal transaction quota.)
However, during the practice in the past before the implementation of new central warehouse mode, enterprises usually got consumers’ product return application 15 to 20 days after customs release (including delivery time, etc.). Due to complicated processing and logistic procedure, it needs another approx. 15 days to return goods to the original supervision workplace. The complicated procedure includes, first, consumers need to mail the goods to a product return warehouse, which is set separately outside the supervision area. Then, staff in the warehouse will sort the goods. If the product meets the condition to be sold again, enterprises will submit the return application to the customs, and then the products will be returned to the supervision area to complete the following return procedure. In this traditional return mode, a number of products failed to be returned in time since the application should be submitted by enterprises within 30 days after the customs release.
The situation will get better after the implementation of the central warehouse mode, since consumers can mail goods directly to the specialized product return spot inside the supervision area. It is expected that this new measure will:
greatly speed up product return, better customers’ purchasing experience and adjust personal transaction quota timely;
help enterprises complete return procedure in time, through which enterprises can save tax expenditure;
reduce enterprises’ cost of setting up a product return warehouse outside the supervision area;
cut down the transportation, loading and unloading cost for returning products from the warehouse to the supervision area, etc.
For detailed requirements of this new central warehouse mode or further translation of China Custom’s notice, please email ChemLinked.
We provide full-scale global food market entry services (including product registration, ingredient review, regulatory consultation, customized training, market research, branding strategy). Please contact us to discuss how we can help you by 
