New flashlight eshop and the future of China business

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vresto
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New flashlight eshop and the future of China business

Hallo.Right now i read few articles in our local news and iam a bit confused of it…As officials say-at least in our country-Slovakia-and no doubt also in other countries we as final customers will pay tax for each one order,sent from China…This means also very small packets…This should start sometime in 2021..If so,this will be disaster for us:) Till now we could order anything to 22 euros without any taxes on the border..No charges.Now they have to plan to change it..This can ruine all our shopping in chinese stores iam afraid..They said its just deffense against the chinese fake and cheap product invasion.As i know, Aliexpress already built a big store in Czech republic, Banggood opened their warehouse in Europe somewhere,they have plans to start production in Albania and in Africa…What do you think will be progress of the chinese business inc.eshopping? Will it be more problematic or not? Will it rise or fall? My solid chinese friend wanted also open a new eshop with solar panels,flashlights and accesories in Tianjin ,but iam not sure if this make sense anymore….What is the future of chinese business at least in eshop platforms in your opinion? How is it your country?Will we order all the chinese stuff in our countries in near future?

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Th558
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They’re doing it to protect against the exporting of fake products..yh no ones believing that.

1stein
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Things like that may be preceeded by some political situation. I wouldn’t discard the option that due to good relation between China and other countries the present custom clearance procedures are not executed on retail level. In my case I’ve bought at least 500 items in common Chinese e-stores and happened to pay tax just twice. But when I buy in US I pay tax each time. It can’t be a coincidence. Tightening the custom payments seem to be easy to achieve, but not necessarily welcomed due to political agreements that we’re not aware of.

brewster
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Australia introduced a law that even small foreign purchases should be subject to the domestic (Australian) goods and services tax. Now all of the larger Chinese e-sellers add on the tax. Ebay does it too for all foreign transactions (even in those cases where the transaction would have been exempt from the GST, such as secondhand goods from private sellers). I think what you are seeing is Chinese businesses complying with national policies in other countries.

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vresto
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really???waw thats unbelievable..and where if i may ask…

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Lightbringer
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That’s why I haven’t ordered anything from AX in ages. First they started hitting me with tax, even though they’re clean across the planet, and now they’re socking people with separate PP fees on top of all that.

No thanks.

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Lightbringer
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Btw, of all those “Chinese businesses complying with national policies in other countries” that are collecting all that extra cash, I wonder just how many are actually remitting those funds to the appropriate entities.

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wishiwereaskibum
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Lightbringer wrote:
Btw, of all those “Chinese businesses complying with national policies in other countries” that are collecting all that extra cash, I wonder just how many are actually remitting those funds to the appropriate entities.

I’d say zero

I spent a decade working for a very large company. The USA made products I sent to China had the 35% VAT added onto the landed price / cost in China. The the Chinese made products I brought to the USA of course had ZERO taxes. Plus US engineers I had at about $135k/year burdened cost whereas my Chinese factories had $10k/yr burdened. Yup. Shocking how important-exports were and are unbalanced…. then we had a factory general manager who was walking about 15 % of the product out the back door and selling it on his own… when he got busted, he claimed it wasn’t bad because it was good for his family therefor totally fine. And Chinese law protected him!

These are true facts and can’t be made up.

Thought I’d share this insight. Yes it’s a decade old but my understanding is that attitudes haven’t changed much at all in the past decade even if wages have risen substantially.

All for now.

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GDF
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Yeah, they are likely pocketing an additional 7-9% profit on every transaction. Without a presence in the US, they can report any sales figure they want and remit a fraction of the taxes. I’m buying more from Bangood nowadays, but they also employ shady insurance and shipping fees that I have to disable every time I place an order.

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Deal with the Devil man, you all know the rules.
When you get labor for .25 an hour or whatever it is you are not going to have honest people running the sweatshop.

So what if they skim off the top, like our companies don’t?
All businesses are a big effing charade with scum accountants, lawyers, bogus board of directors, etc.
Just puff up the stock baby!

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Its global. All big countrys will tax Chinese products and its OK.

vresto
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i also think its a deffense against them..but for us it means they will charge also our cheap packets from BG etc….

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vresto
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Lightbringer wrote:
That’s why I haven’t ordered anything from AX in ages. First they started hitting me with tax, even though they’re clean across the planet, and now they’re socking people with separate PP fees on top of all that.

No thanks.


wait wait…AX is different than our usually used vendors like BG etc??

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iamnuts
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I thought it was more to do with the postal services not getting any financial support from the sending country. All countries are signed upto an agreement that they will deliver the other countries post for no charge. This used to be ok when it was just the odd letter or parcel, but with the massive influx of post/parcels from china the receiving country actually loses money. So in my opinion its their way of compensating for it.

Lightbringer
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vresto wrote:
Lightbringer wrote:
That’s why I haven’t ordered anything from AX in ages. First they started hitting me with tax, even though they’re clean across the planet, and now they’re socking people with separate PP fees on top of all that.

No thanks.


wait wait…AX is different than our usually used vendors like BG etc??

Haven’t yet gotten charged tax or PP fees from BG, GB, or FT.

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forsh
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i was reading in finland they will introduce some post tax, because the post service here is getting busy with all the parcels coming from china (to me manly)

they was supposed to introduce it allready this year, but ive not recieved any bill for tax or post . ok ive only ordered bits and pieces from BG under 20 euro each time

but does it really effect us if we are spending less then 50euro per parcel

saying that my friend at work ordered a few phones from china. 48 euro one phone and about 100 euro for another phone and get taxed (import duty) on both phones i think the 100 euro phone was about 18euro to pay tax

so i dont really know what they charge and what on

i think phones and electronics are taxed and electronic parts come under a different section of tax

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Hi, vresto. I have cousins in Zborov. And more cousins who have moved west to Prague. It’s a small world.

As things stand in the USA at the moment, I don’t believe that a small sales tax across the board would reduce US residents’ internet purchases from China more than perhaps 5%-10%. It would take a larger tax than that to bring total price up to the level of the big US e-tailers. That’s my gut feeling… no hard data or research.

Personally, I already avoid purchases with China shipping as much as possible, be they on ebay, Amazon, or a China-based web store. I just don’t like the relative uncertainty and long wait times involved with the long-distance shipping, and I also don’t get a warm feeling about their customer service ethic if I have a problem with the product or with shipping, so overall I’m willing to pay a bit more for most stuff if I can get it from a US e-tailer or at least a US-based warehouse.

vresto
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Zborov? Really? Far from me, but the world is really small sometimes. We wanted open something western menthality eshop.i understand what you mean… This was the reason why.cust.service silence, unreasonable waiting times.. Yes.. Exactly.

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vresto
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https://www.idnes.cz/ekonomika/domaci/evropska-unie-cla-dph-zbozi-zasilk...

its in my language,but sadly the message is-you will pay VAT tax and borderd tax for all chinese orders….since 2021..which will change the good old shoppings in chinese estores into much more expensive..and loooong waiting in the delivery proccess…so the chinese answer will be- moving their warehouses into Europe….now its official..at least here.

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forsh wrote:
i was reading in finland they will introduce some post tax, because the post service here is getting busy with all the parcels coming from china (to me manly)

they was supposed to introduce it allready this year, but ive not recieved any bill for tax or post . ok ive only ordered bits and pieces from BG under 20 euro each time

but does it really effect us if we are spending less then 50euro per parcel

saying that my friend at work ordered a few phones from china. 48 euro one phone and about 100 euro for another phone and get taxed (import duty) on both phones i think the 100 euro phone was about 18euro to pay tax

so i dont really know what they charge and what on

i think phones and electronics are taxed and electronic parts come under a different section of tax

The answer might not fit the question but: import duties in EU are low on most goods.
BUT you have to pay 21% VAT on the total (assurance or estimated) value plus shipping cost.
Customs “services” are not free. They outsource these activities. The fee cost you €13+ a pop.
So the new regime won’t be “every single small parcel lands for free at my doorstep”.
The new regime might be: add your orders in order to mitigate shipping and handling cost.

Or stop buying these things outside EU.

You are a flashaholic if you are forced to come out of the closet, to make room for more flashlights.

MoreLumens
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If I remember right our countrys postal office only takes under 3 € extra IF package value is over 22 € and it goes to customs (+24 % most common tax, some things are little bit cheaper) more price added to value+shipping costs)
Usually China marks values kinda funny so I dont worry at all.
Its been highly unlikely that they would go to customs and I had to pay extra taxes no matter the real value. And things are still cheaper to get from China even if you had to pay some extra.

And China will start using EU warehouses more and more so it doesnt matter at all what those greedy taxers are going to do.

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In the USA, it has been the case that when a Chinese company ships something to the US, the US postal service (the US taxpayer) picks up the cost so that Chinese companies get free freight on light packages. That explains why Chinese company’s don’t care if they ship 3 of those $1 widgets to the US in 3 separate air fare boxes a week apart instead of waiting and shipping it complete in a single package.

The reverse is not true and things shipping from the US to China are paid by the US shipper. That craziness was outed not long ago and apparently the Trump administration has been working to achieve equality. Not sure when it will change, but you can bet money it won’t continue. Those $10 flashlights coming out of China into the US won’t be getting the postal costs picked up by US taxpayers in the future at some point. The free ride for the Chinese will be ending, possibly July 2020 -so stock up now on cheap Chinese goods if you live in the US.

https://www.forbes.com/sites/wadeshepard/2017/11/05/how-the-usps-epacket-gives-postal-subsidies-to-chinese-e-commerce-merchants-to-ship-to-the-usa-cheap/#5df10c1c40ca

vresto
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this thread was posted by me before the Corona pandemic…So,what do you all think now about the future of chinese stores and this e business?
It will be the same…?

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Here was the rule that they add VAT if the total value of the product +shipping is over 15EUR, and this is going on for several years, but as far as I have learned actually here the customs decide which packages to sent at the customs office and which directly to the buyer based on monthly quotas. There have been various releases on this matter.
So because of this some people have to go to the customs, some not. Once you are there at that office they either add VAT or don’t based on quotas also, so basically most gets non-VAT.

As far as I see 3 or more years ago people were not buying like there is no tomorrow products from China online. Recently even the authorities make comments about the aliexpress influx of packages blocking the customs due to huge amount of packages.
I really think so far packages from China were ignored as being some cheap stuff, so who cares, but as the quality in China grew a lot and you can get now, serious smartphones, serious tables, serious laptops, serious flashlights, etc. everybody knows that not all coming from China is low quality these days, so it means there is some serious value to it that has to be taken into account.

And none the less the regulations will be stricter and stricter year by year, it is obvious that the governmental control is higher and higher year by year in all matters of society, why should buying stuff from China be a wild uncontrolled thing.

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I think that there will be more reciprocity. The rest of the world will likely stop subsidizing shipping costs from China and start charging taxes, just like the CCP has always done to the rest of the world.

vresto
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btw..is the free shipping from China to the rest of the world option only for eshops or for everyone?? private sending….
i read today,from july 2021 they will charge our orders..

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Hikelite
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vresto wrote:
btw..is the free shipping from China to the rest of the world option only for eshops or for everyone?? private sending….

I hope you understand there is no free shipping…
vresto
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you mean i pay for it..but i dont know it….:)

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Hikelite
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Yeah, it is included in the final price of a product. Yet the sellers pay low prices to the shipping companies due to being subsidized by the government.

Now the western postal companies are also subsidized, when you have a national post owned company that is losing millions of euros per year and that company does not go bankrupt and it is not being closed after so many years, means the government is supporting that business.

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vresto wrote:
btw..is the free shipping from China to the rest of the world option only for eshops or for everyone?? private sending…. i read today,from july 2021 they will charge our orders..

It’s supposed to be changing for the US next month, due to the the renegotiation of the decades old fee structure of the Universal Postal Union. When the last agreement was put in place, China was still just a budding economy, so they have enjoyed low shipping rates for a long time. Trump knew this, and threatened to pull out of the Postal Union, if the now vastly lopsided agreement wasn’t renegotiated to meet modern postal rates for large volume, small pkg (2kg) e-commerce importers.

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