Re-import of Chinese goods - from Da Vinci furniture

In July 2011, the dazzling “Da Vinci Furniture” incident attracted the attention of countless people. Today, perhaps people still vaguely remember such a scene: one side is Da Vinci furniture that claims to have no fraud, all kinds of formalities are complete, and one side is the consumer whose rights have been hurt, and several times. Regrettably, Da Vinci has not given the public a satisfactory answer to this day. But how did Da Vinci produce from China and return to China? The media's description of this image: domestic goods are re-imported.

Whether Da Vinci furniture is fraudulent or not requires legal judgment, and the phenomenon of re-importation of domestic goods hidden behind it requires our continued attention.

Multinational corporations are closely related to the re-import of domestic goods

Re-import refers to goods originating in the country and having been actually exported and leaving the country. If the goods are not substantially processed and changed, the goods need to be re-invested for some reasons. Activities. In China, the customs trade statistics table, the People’s Republic of China imports from the People’s Republic of China. According to China's customs statistics, in 2007, China's domestic goods re-imports accounted for 9% of the total imports of the year; in 2008, China's total domestic goods re-imports reached 92.45 billion US dollars; in the first eight months of 2010, China's total domestic goods re-imports It has reached a total of 66.228 billion US dollars, accounting for 7.45% of the cumulative import value (885.583 billion US dollars) during the same period; in the 15 years from 1995 to 2009, China's domestic goods re-imports increased by 38.23 times.

The characteristics of China's domestic goods re-import are:

The import of domestic goods involves a wide range of goods, and the import of electronic products and machinery and equipment accounts for the majority. The re-import of intermediate products is the main force.

Statistics show that between 2000 and 2009, the types of goods involved in China's domestic imports accounted for more than 75% of all imported goods. In recent years, they have been stable at nearly 80%, reflecting the wide range of goods involved in the re-import of domestic products. .

At the same time, the United Nations trade statistics show that in the 10 years from 2001 to 2010, the imports of electrical and electronic products (85), machinery and equipment, and boilers (84) accounted for one or two of the total proportion of re-imported products in the same period.

Since 2001, the total proportion of imports of electronic and electrical products and machinery and equipment has risen steadily, accounting for about 75%. Among them, the re-import of electronic and electrical products is particularly large, accounting for about 50% of the total re-imports. This is also a remarkable feature of China's current import and re-import of domestic goods.

The relationship between multinational corporations and China's domestic re-imports is close.

China's foreign trade exports are mainly processing trade, which includes processing of incoming materials and processing of imported materials, and the leading traders are mainly multinational enterprises. The relevant data shows that the nature of enterprises in the re-importation of domestic goods is relatively concentrated, and the main force is the foreign-funded enterprises. In addition, the areas where domestic goods are re-imported are also concentrated, mainly in the Yangtze River Delta and the southeast coastal areas of the Pearl River Delta. From the perspective of trade methods, processing trade is the main way of re-importing domestic goods. From 1995 to 1999, the average annual import volume of processing trade accounted for 91.6% of the total imports of domestically produced products during the same period, while the proportion from 2000 to 2005 was 79.7%. In 2007, it fell back, but still accounted for 69.1%. Since multinational corporations have dominated the foreign trade export business, it is said that the relationship between multinational corporations and the re-import of domestic goods is very close.

Pursuing the maximization of profits and promoting the re-importation of domestic products

There are many reasons for the re-import of domestic goods. In general, there are the following:

China's current tax laws, such as export tax rebates and tariff inversions, have prompted companies to re-import to maximize profits.

The impact of the export tax rebate policy.

China's domestic and foreign trade are managed separately for a long time, and different tax policies are implemented. Domestic trade should levy value-added tax and consumption tax, while foreign trade promotes exports and generally implements export tax rebates. In China, when domestic manufacturers purchase materials such as materials, parts, primary forms and semi-finished products, they have already paid VAT and consumption tax in their purchase costs, but only after processing them. When the goods are exported, partial compensation can be obtained through the national tax rebate. At the same time, due to China's import of processing trade methods, the tax reduction and exemption policy has been implemented. Therefore, importing these raw materials from abroad can enjoy tax reduction and exemption. In this way, domestic materials are exported, so that export enterprises enjoy the export tax rebate; and through the import of processing trade, the import enterprises get the benefits of tax reduction and exemption. This has directly prompted many companies to re-import domestic goods.

The impact of tariff inversions.

In recent years, China has implemented zero-tariff import of some IT finished products, but the import duty rate of raw materials and parts for producing these products has remained unchanged, resulting in an upside down tariff rate on imported materials and finished products. Enterprises import raw materials and parts in the form of processing trade bonded, and process them into products that meet zero-tariff standards. They first export and re-import, avoiding the payment of tariffs. This is also the reason why the re-importance of electronic products is high.

Continue to enjoy the full tax rebate policy for foreign-invested equipment through re-import.

China's relevant policies stipulate that all foreign-invested projects that are directly exported to the products shall be refunded by the state within a full period of five years. In addition, after the expiration of the exemption or reduction of enterprise income tax in accordance with the provisions of the tax law, the export-oriented enterprises that have been invested and established by foreign investors may be levied at a lower rate than the tax rate stipulated in the tax law. corporate income tax. Subject to the above preferential policies, foreign-funded enterprises are reluctant to sell directly, but purchase through re-import.

The refinement of international industrial division of labor and the impact of strategic trade policies of multinational corporations.

As globalization progresses, the value chain divides its work globally. A product is produced only in one place in the world, and it is becoming more and more common for the logistics center to uniformly supply and supply the whole world. This objectively requires certain intermediate products to enter and exit the customs multiple times, resulting in re-import.

In addition, the processing trade that is most closely linked to re-imports is dominated by multinational companies. In the long run, the division of labor and trade dominated by multinational corporations not only focuses on the short-term maximum cost of goods, but also aims to achieve the global strategic allocation of multinational corporations, that is, to ensure the dominant position in the industrial chain. Master the core of the value chain and control the core technologies of the industry chain to achieve the dominance of the host country's enterprises and markets. Therefore, multinational corporations are more inclined to think that the separation of production and trade, using the global allocation method, the re-import of domestic goods will occur.

The impact of imperfect taxation policies on deep processing of processing trade.

In order to prevent the smuggling of deep processing and transfer channels in the processing trade, in addition to the strict manual management, the customs still adopts the method of setting up the transfer and transportation of bonded supervision vehicles. Relatively complicated. If you use re-import, you can save all kinds of troubles. In addition, some enterprises often fail to meet the management requirements of relevant departments when handling the carry-over procedures due to mismatches in the manual items, which makes it difficult to carry forward, and only adopts the method of re-importing domestic products.

The impact of local government export performance.

Export performance as an important indicator of local government's year-end assessment of enterprises (especially state-owned enterprises) is often the government's export quotas, foreign trade management rights approval, contract and equipment tax exemption and approval. In order to obtain these benefits and benefits, many companies know that there are domestic purchases, but they still choose to re-import and pursue high export performance.

In addition, internationally, it is accustomed to regard China with a labor advantage as a product manufacturing base, and Hong Kong and other places with world-class free port advantages as a global unified distribution base. This habit will naturally lead to different countries, especially relying on labor advantages. “Re-import” of countries that process international products. Compared with countries such as Vietnam and India, China has a large processing volume and a large import volume in the international logistics structure. Therefore, the phenomenon of “re-import” is also prominent.

Through the above analysis, we can see that the current phenomenon of China's domestic imports is very prominent. Excessive imports of Chinese goods will bring a lot of negative effects. For example, some enterprises take the opportunity to evade taxes and push up the foreign trade surplus. How to solve these negative effects requires further discussion by government departments and scholars.

50ml Glass Perfume Bottle

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