The "Jargon" Guide to Import and Export Trade

Mr. Zhang recently received an overseas order but was stumped when asked during customs declaration: "Will you use general trade or processing trade?" Meanwhile, Ms. Li's cross-border e-commerce team is debating over the codes "9710" and "9810." Behind the seemingly simple buy-and-sell of import and export trade lies countless "access codes." Today, we’ll demystify these trade methods.

1. General Trade: Like supermarket shopping—"cash on delivery"—it suits one-time transactions of finished goods. Zhongshitong statistics show that general trade accounted for 56% of transactions in 2023, making it the dominant method.

2. Processing Trade: Similar to OEM models like "processing with supplied materials," common in electronics and textiles. The key point is exemption from import VAT, but all finished products must be exported.

3. Barter Trade: The ancient wisdom of goods-for-goods exchange has evolved into "cross-border trade without foreign currency," ideal for countries with strict forex controls.

• Cross-border B2B E-commerce (9710): Online wholesale between businesses, offering streamlined customs clearance and tax refunds.
• Overseas Warehouse Model (9810): Pre-stocking goods in foreign warehouses enables "next-day delivery" magic.
• Market Procurement Trade (1039): "Group export" for small commodities, with single declarations under $150,000.

Ms. Wang once mistakenly used processing trade for domestic sales and faced back taxes and late fees totaling 30% of the goods' value. Key considerations when choosing trade methods:

• Raw material sources (domestic/imported)
• Finished product destinations (export/domestic sales)
• Enterprise qualifications (special permits required?)

RCEP’s rules of origin grant tariff benefits for "multi-country manufacturing." A Zhongshitong client in auto parts saved 17% costs through cumulative rules. Meanwhile, blockchain is making transit trade logistics and fund flows transparent and traceable.

Next time you hear terms like "bonded exhibition trade" or "cross-border service trade," ask three questions: Where’s the goods’ origin? How is payment settled? What about taxes? These may be the master keys to navigating the import-export maze.