The General Administration of Customs (GAC) announced on Tuesday the launch of a new insurance program designed to support cross-border commerce.
To enhance the business environment and facilitate cross-border e-commerce retail import trade, the GAC on Tuesday initiated a pilot program for cross-border e-commerce retail import tariff guarantee insurance in the cities of Qingdao, Hangzhou, Ningbo, Jinan, Chongqing, and Chengdu.
Cross-border e-commerce enterprises now have additional options for securing insurance guarantee customs clearance, complementing the original two modes: deposit and bank guarantee. With insurance documentation, these enterprises can benefit from the convenience of "post-release duty payment" when their imported goods clear customs.
The retail import tariff guarantee insurance in cross-border e-commerce requires that qualified insurance companies provide tariff guarantees for cross-border e-commerce enterprises. If these enterprises fail to pay customs duties in accordance with regulations, the relevant insurance companies will cover the outstanding tax payable to customs as specified in the insurance contract. This model eliminates the need for enterprises to secure a quota from the bank through physical collateral or to pay a substantial tariff deposit.
"The rate of tariff guarantee insurance is about 1.5 percent, and the guarantee amount can be used repeatedly throughout the year, with one application being valid for the entire year," said Bi Haijun, director of the Tariff Department of Qingdao Customs.
China launches new insurance to support cross-border commerce
