Introduction #
The 9610 model, officially termed as the “Cross-Border Trade E-Commerce Export Model”, is a customs supervision code introduced by China Customs to facilitate retail export transactions in cross-border e-commerce. This model was first codified in General Administration of Customs Announcement No. 12 (2014), with specific regulatory requirements set out in Announcement No. 56 (2014), later superseded by Announcement No. 26 (2016). The currently applicable regulatory instruments include Announcement No. 194 (2018) and the inter-agency Notice on Improving the Regulation of Cross-Border E-Commerce Retail Imports (Shang Cai Fa [2018] No. 486). These instruments have established a standardized operational process for B2C cross-border e-commerce exports.
The 9610 model entails specific compliance obligations in customs clearance, taxation, and foreign exchange administration. This article aims to provide practical guidance for operating under the 9610 model and to highlight key legal considerations in tax and foreign exchange compliance to support cross-border e-commerce enterprises in lawful and efficient operations.
I. Operational Guidelines for the 9610 Model #
The 9610 model is a regulatory framework designed specifically for cross-border retail exports, applicable to e-commerce businesses selling goods to overseas consumers via online platforms. The main procedural steps are as follows:
1. Product Registration and Data Entry #
Enterprises must register their products in the customs system in advance, including information such as product name, quantity, price, and origin, to ensure legality and compliance in exportation. Once registered, order information may be transmitted in real time to the customs system via e-commerce platform interfaces. These interfaces facilitate integration of three key data elements: order details, payment records, and logistics information, ensuring synchronization between enterprise systems and customs databases.
2. Order Generation and Customs Declaration #
Upon order confirmation by a consumer, enterprises must compile and submit order data (product details, buyer identity, transaction value, etc.) to customs for declaration. The 9610 model supports batch order declarations, using the “list-based release and summary declaration” system to streamline the export process for high-frequency, low-value orders.
3. Logistics and Export Supervision #
After successful customs declaration, enterprises may choose qualified international logistics providers (e.g., postal parcels, international couriers, or specialized cross-border logistics) to ship goods. Customs authorities may conduct random inspections during outbound clearance to verify the authenticity of declared information.
4. Order Tracking and After-Sales Services #
Following shipment, enterprises are expected to provide tracking information to customers to ensure end-to-end traceability. Additionally, a comprehensive after-sales service mechanism should be established to handle cross-border returns, exchanges, and customer service, thereby improving consumer satisfaction.
II. Tax Compliance Issues in the 9610 Model #
The tax compliance framework for the 9610 model primarily involves export VAT exemptions and refunds. As the model is designed for frequent, small-value B2C transactions, enterprises must meet certain conditions and provide valid documentation to qualify for VAT refunds.
1. Value-Added Tax (VAT) #
Under China’s VAT export policy, qualified retail export goods under the 9610 model are eligible for VAT exemption or refund. Applications for VAT refunds require documents such as export customs declarations and special VAT invoices. Compared to traditional export models, the 9610 model simplifies certain procedures; however, enterprises must still ensure accuracy, completeness, and authenticity of all supporting materials, as incomplete documentation may result in refund denial. Notably, exemptions on import VAT are no longer absolute, with a 70% collection rate applied to the statutory tax base.
2. Customs Duties #
For goods listed in the Cross-Border E-Commerce Retail Import Commodity List that fall within the prescribed value limits, the import duty rate is temporarily set at 0%. The current threshold is RMB 5,000 per transaction and RMB 26,000 per year per individual. Transactions exceeding the annual limit are regulated under general trade rules.
3. Taxpayer Obligations and Withholding Responsibilities #
For cross-border retail import goods, duties and import-stage VAT and consumption taxes apply. The individual buyer is the taxpayer, and the dutiable value includes the retail price, shipping fees, and insurance. E-commerce platforms, logistics providers, or third-party service providers may be designated as withholding agents responsible for collecting and remitting applicable taxes.
4. Enterprise Income Tax Reporting #
Revenue generated under the 9610 model constitutes taxable income for corporate income tax (CIT) purposes. Enterprises must truthfully declare this income in accordance with Chinese tax regulations and ensure that revenue reported in customs filings aligns with internal accounting records. Regular reconciliation of foreign exchange receipts and financial data is necessary to ensure accurate CIT filings and to avoid triggering tax audits due to underreporting.
III. Foreign Exchange Compliance in the 9610 Model #
Foreign exchange compliance under the 9610 model mainly involves export settlement and verification. Enterprises must ensure that each foreign exchange receipt matches its corresponding export declaration to ensure lawful inflows.
1. Export Settlement and Conversion #
Foreign exchange earnings under the 9610 model are generally remitted through third-party payment service providers or integrated platform payment systems. Enterprises must complete foreign exchange receipt within the prescribed period post-export, and the amount received must match the customs-declared value. Full integration of the “three-element” (transaction, payment, logistics) must be maintained.
2. Compliance in Using Third-Party Payment Systems #
Widespread use of third-party payment processors (e.g., Alipay, PayPal) is common in the 9610 model. Enterprises must ensure that such platforms are in compliance with the regulations of the State Administration of Foreign Exchange (SAFE). Improper use of non-compliant payment channels may lead to regulatory violations. Enterprises must maintain accurate transaction records and ensure transparency in the origin and destination of funds for audit purposes.
3. Anti-Money Laundering (AML) Risk Prevention #
Enterprises must implement internal financial controls to prevent cross-border money laundering. Each inbound payment should be traceable to a valid order, with proper documentation to support the legitimacy of both the transaction and the funds received.
IV. Additional Compliance Considerations #
1. Data Authenticity Responsibilities #
E-commerce platforms, their domestic agents, payment service providers, and logistics providers must transmit electronic data on transactions, payments, and logistics to customs through the China International Trade Single Window or relevant cross-border e-commerce customs portals. Each party bears responsibility for the authenticity and integrity of the data provided.
2. Product Quality and Risk Controls #
E-commerce businesses and their agents must implement quality and safety risk control mechanisms and monitor for irregularities such as counterfeit goods, resale of returned products, or other abnormal transactions. Enterprises are prohibited from importing or exporting items that threaten public health, biosecurity, food safety, or infringe intellectual property rights. A robust product traceability system must be established, and businesses must assume primary liability for product safety.
3. Prohibition of Secondary Sales #
Retail import goods purchased through cross-border e-commerce under the 9610 model may not be resold by individual consumers.
Conclusion #
The 9610 model provides cross-border e-commerce enterprises with a streamlined export mechanism that facilitates efficient retail export operations. However, the model imposes strict compliance requirements in the areas of taxation and foreign exchange regulation. Enterprises must be familiar with the applicable regulatory framework and implement internal controls to ensure lawful and compliant operations under the 9610 model.
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