Returns have always been the most headache-inducing part of cross-border e-commerce. A Shenzhen-based seller engaged in 9610 retail exports had a batch of clothing worth 80,000 yuan returned by an overseas buyer last year due to sizing issues. However, since the original export customs clearance was processed in Xiamen, the returned goods could only be cleared through customs and re-imported via Xiamen. The goods were returned from the United States to Xiamen and then transported to a warehouse in Shenzhen. The entire process took 45 days, and logistics costs accounted for 35% of the goods’ value—virtually erasing all profit from this shipment.

Effective April 1, 2026, this long-standing issue saw a systemic breakthrough. The General Administration of Customs issued an announcement to roll out a cross-customs district return model for cross-border e-commerce retail export goods nationwide. This means that when goods exported by cross-border e-commerce enterprises are returned from overseas, they are no longer required to be returned to the original port of export; instead, companies can flexibly choose any customs port nationwide to complete the return and re-import procedures. At the same time, the Ministry of Finance, the General Administration of Customs, and the State Taxation Administration jointly issued a tax-exemption policy for returned goods. Under this policy, goods (excluding food) that were declared for export under cross-border e-commerce customs supervision codes (1210, 9610, 9710, 9810) and returned in their original condition within six months of the export date due to slow sales or customer returns (excluding food) will be exempt from import duties, import-stage value-added tax, and consumption tax.

Together, these two policies have cleared the ”last-mile” reverse logistics bottleneck for cross-border e-commerce sellers when it comes to returns. However, whether these policy benefits can truly be realized depends on whether companies understand the rules and have established supporting compliance processes for returns. Qicaiying Group specializes in providing domestic and international company registration services in Shenzhen, Guangzhou, Shanghai, Beijing, Hangzhou, Hong Kong, the United States, Japan, South Korea, Southeast Asia, Singapore, the British Virgin Islands (BVI), the Cayman Islands, and other locations, as well as corporate annual review and auditing, bookkeeping and tax filing, tax compliance, information changes, bank account opening, ODI filing, FDI filing, and other corporate services; Hong Kong residency application, renewal, and permanent residency services; Singapore EP application services; and one-stop cross-border e-commerce mentoring and agency operations. If you have any needs or are interested, please feel free to contact me at any time (Consultation Hotline: 18676749275, add WeChat: Qicaiyingjituan).

I. Cross-Customs District Returns: Removing the Restriction on ”Returns to the Original Export Customs Office”

The key change in the cross-customs district return model is that it removes the restriction requiring returns to be sent back to the ”original export customs district.” Previously, when cross-border e-commerce retail export goods (Model 9610) were returned from overseas, they had to be sent back to the original customs district of export to complete the procedures for re-importation. This meant that if a company cleared customs for export in Xiamen, even if its warehouse was located in Shenzhen, the returned goods had to be sent to Xiamen first.

Scope of Application of the New Model. Cross-customs district returns apply only to cross-border e-commerce retail export goods, i.e., the ”9610” mode. The 1210 bonded stock model, the 9710 B2B direct export model, and the 9810 overseas warehouse model are not currently applicable. Enterprises must confirm that their export model falls under the “9610” category in order to benefit from the cross-customs district return facilitation.

Practical Steps. When a seller processes a return from overseas, they may choose any customs port nationwide to complete the procedures for re-importing the returned goods. The specific process is as follows: Step 1: Submit a return application to the customs office at the selected port, providing the original export declaration number, a list of goods, and an explanation of the reason for the return; Step 2: After customs approval, the goods arrive at the designated port to complete the import declaration for the return shipment; Step 3: Once import procedures are completed, the company may apply for an adjustment to the export tax refund or for tax exemption in accordance with regulations.

Cost optimization results. Song Xiangqing, Vice President of the China Society of Business Economics, pointed out that the cross-customs-district return model breaks the restriction of ”returning goods to the original export customs district.” Enterprises can now independently choose any customs port nationwide to process returns, which significantly reduces reverse logistics costs, shortens the return cycle, revitalizes overseas inventory, and accelerates cash flow. Taking sellers in Shenzhen as an example, goods that previously had to be returned to Xiamen can now be returned directly through the Shenzhen port, reducing logistics costs by approximately 40% and shortening the return cycle from 45 days to about 15 days.

II. Tax Exemption for Re-export: Tax Incentives During the 6-Month Window Period

The duty-free return policy provides cross-border e-commerce sellers with an additional layer of protection. For goods (excluding food) declared for export under the cross-border e-commerce customs supervision codes (1210, 9610, 9710, 9810) and returned to the country in their original condition within six months of the export date due to slow sales or customer returns (excluding food) shall be exempt from import duties, import-stage value-added tax, and consumption tax.

Three Key Conditions. First, Time Limit: The return shipment must be completed within six months from the date of export. Goods returned after six months are not eligible for the duty-free policy and must be subject to customs duties and value-added tax in accordance with normal import procedures. Second, Reason Requirements: The reason for the return must be slow-moving inventory or customer returns. For goods returned due to quality issues, breach of contract, or other reasons, the policy refers to them as ”due to slow-moving inventory or customer returns”; in practice, the specific scope of application must be confirmed with the competent customs authority. Third, condition regarding the state of the goods: The goods must be ”returned in their original condition,” meaning they have not been processed, modified, or used. If the returned goods have been used or modified, they may not be eligible for duty exemption.

Details on Tax Treatment. Export duties already levied at the time of export are eligible for a refund; value-added tax (VAT) and consumption tax already levied at the time of export shall be handled in accordance with the relevant tax regulations governing returns of domestically sold goods. This means that for goods that have already received a tax refund at the time of export, the original refund amount must be repaid as tax upon their return. For the 1210 bonded stockpiling model, goods must be returned to the domestic area outside the customs special supervision zone or bonded logistics center (Type B) within six months from the date of departure from the zone.

Precautions Regarding Excluded Foods. The tax-exemption policy for returned goods explicitly excludes food products. Cross-border e-commerce sellers whose primary business involves exporting food must assess return costs separately and are not eligible for the tax-exemption policy on returned goods. It is recommended that food sellers reduce their return rates by optimizing product selection and quality control, rather than relying on the tax-exemption policy for returned goods.

III. Practical Guide to Returns: From Cost Center to Profit Protector

Returns should not be viewed as merely a cost center; in fact, effective return management actually safeguards a company’s profits. By leveraging tax-exempt policies for cross-customs-district returns and return shipments, sellers can establish the following return management system.

First, establish a mechanism for early warning and classification of returns. Set return rate alert thresholds in the overseas warehouse or platform backend (e.g., an alert is triggered when the return rate for a single SKU exceeds 8%). Categorize and handle returns based on the reason: Returns due to sizing issues should be re-sized and resold; returns due to quality issues should be processed for duty-free return and the supply chain traced; slow-moving inventory should be shipped back to China under the duty-free return policy or redirected to other markets for sale.

Second, optimize the logistics routes for returns. Take advantage of the cross-customs district return policy to select the port closest to your warehouse or with the lowest logistics costs for processing returns. For sellers exporting through multiple ports, you can coordinate the return volumes across each port to balance customs clearance efficiency. At the same time, negotiate bulk return discounts with logistics service providers to reduce the logistics costs per returned item.

Third, standardize the tax refund adjustment process. If returned goods have already received an export tax refund, the corresponding taxes must be paid retroactively in accordance with regulations after the goods are re-imported. Enterprises should establish a linked ledger for tax refunds and returned goods to ensure that tax refund adjustments are made in a timely and accurate manner. For the 9610 retail export model, after the goods are returned, enterprises must complete the procedures for offsetting the tax refund or making the additional payment through the Electronic Tax Bureau.

Fourth, use overseas warehouses to reduce the return rate. Under the 9810 overseas warehouse model, companies can use the ”tax refund upon departure” advance refund mechanism to accelerate cash flow, while handling local returns and reselling products through overseas warehouses to reduce the need for cross-border returns. For goods that must be returned, companies can further reduce costs by taking advantage of tax-exempt return policies.

The complexity of returns management requires sellers to establish a compliance system that integrates financial accounting, logistics planning, and tax filing. Qicaiying has launched a comprehensive service package—”E-commerce Compliance Accounting + Cross-Border E-commerce Support + Export Tax Rebate”—to help businesses establish end-to-end compliance management, from returns early warning to return shipment declaration. Qicaiying Group specializes in providing domestic and international company registration services in Shenzhen, Guangzhou, Shanghai, Beijing, Hangzhou, Hong Kong, the U.S., Japan, South Korea, Southeast Asia, Singapore, the British Virgin Islands (BVI), the Cayman Islands, and more, as well as annual review audits, bookkeeping and tax filing, tax compliance, information updates, bank account opening, ODI filing, FDI filing, and other corporate services; Hong Kong residency application, renewal, and permanent residency services; Singapore EP application services; and cross-border e-commerce mentoring and agency operations—all as part of our one-stop service. If you have any needs or are interested, please feel free to contact me at any time (Consultation Hotline: 18676749275, add WeChat: Qicaiyingjituan).

IV. Window of Opportunity for Policy Benefits: Companies Need to Plan Ahead

The duty-free return policy has been extended through December 31, 2027, and cross-customs-district returns have been rolled out nationwide. These two policies provide cross-border e-commerce sellers with a window of opportunity lasting approximately two years. However, whether these policy benefits can truly translate into cost advantages for businesses depends on three prerequisites.

Prerequisite 1: Compliance with export regulations. Cross-customs-district returns apply only to the 9610 mode, while duty-free returns cover the four modes: 1210, 9610, 9710, and 9810. Companies must ensure they use the correct export customs clearance mode; otherwise, they will not be eligible for this policy. For the sake of convenience, many sellers uniformly use the 0110 general trade mode for export customs clearance; however, when these goods are returned, they are not eligible for the duty-free return policy.

Prerequisite 2: The document chain is complete. To file an import declaration for returned goods, you must provide a complete set of documents, including the original export customs declaration, a list of goods, and a statement explaining the reason for the return. Companies should maintain a ledger linking exports to returns to ensure that each return transaction can be traced back to the original export customs declaration.

Prerequisite 3: Effective time management. The six-month window for duty-free returns is a strict requirement. Companies should establish a timeline for handling returns: initiation of return → logistics arrangements → selection of port of entry → preparation of customs declaration → import procedures. The entire process must be completed within four months, leaving a two-month safety margin.

Returns are no longer the ”Achilles” heel” of cross-border e-commerce. Cross-customs-zone returns have broken through logistics bottlenecks, and duty-free return shipping has reduced tax costs. By simply establishing supporting compliance processes, businesses can transform returns from a cost black hole into a profit protector. Qicaiying Group specializes in providing domestic and international company registration services in Shenzhen, Guangzhou, Shanghai, Beijing, Hangzhou, Hong Kong, the United States, Japan, South Korea, Southeast Asia, Singapore, the British Virgin Islands (BVI), the Cayman Islands, and more. We also offer corporate annual review and auditing, bookkeeping and tax filing, tax compliance, information updates, bank account opening, ODI and FDI filings, as well as Hong Kong residency applications, renewals, and permanent residency services; Singapore Employment Pass (EP) application services; and cross-border e-commerce coaching and managed operations—all as part of our one-stop service. If you have any needs or are interested, please feel free to contact me at any time (Consultation Hotline: 18676749275, add WeChat: Qicaiyingjituan).

During this transitional period in which cross-border e-commerce is shifting from ”unchecked growth” to ”refined operations,” the ability to manage returns will become a key metric distinguishing top sellers from average ones. Those who can effectively leverage policy benefits will be able to save hundreds of thousands—or even millions—in costs each year when it comes to returns.