In the cross-border e-commerce industry, there is a customs control code that virtually everyone involved in exports must deal with.

It is—0110.

In other words, as people often say:
“General Trade Exports.”

When many sellers first start venturing into cross-border e-commerce, their understanding of 0110 often stops at:

“Tax refunds available,” “proper customs clearance,” “traditional foreign trade model.”

In reality, however, as regulations in the cross-border industry have become increasingly stringent in recent years, 0110 is no longer just a simple customs declaration code; rather, it has become an increasingly important component of the overall cross-border compliance framework.

Especially against the backdrop of ongoing strict scrutiny of “invoice-based exports,” gradually increasing transparency in platform data, and a comprehensive upgrade in tax oversight, more and more companies are beginning to re-emphasize the 0110 model.

For companies that are truly committed to long-term operations, brand-building, and large-scale exports, 0110 is no longer just a customs clearance method—it is a comprehensive framework for transparent business operations.

I. Why Is 0110 Becoming Increasingly Important?

0110, full name “General Trade.”

It is essentially the most traditional and well-established form of export trade in our country.

Simple to understand:

Enterprises within China that hold import and export licenses sell goods to overseas customers in their own name and complete the export process through formal customs clearance procedures.

Before the rise of cross-border e-commerce, most traditional foreign trade companies had actually been using the 0110 model all along.

Later, as the cross-border industry rapidly developed, the following began to appear on the market:

• Export on a payment basis;
• Gray Mode;
• Small packages shipped directly;
• Mixed use of multiple entities;
• Exports without invoices;

In their pursuit of lower costs, many companies have gradually strayed from standard export channels.

But now, the dynamics of the industry have changed.

As data from customs, tax authorities, banks, and online platforms becomes increasingly interconnected, the risks associated with “informal exports” are rapidly escalating.

In particular, many companies are now beginning to realize that:

If we want to truly achieve the following in the future:

• Compliant receipt of foreign exchange;
• Standardize tax refunds;
• Overseas financing;
• IPO Plans;
• Brand globalization;

0110 is practically an indispensable foundation.

Because its greatest value lies not merely in the fact that it “can be exported,” but rather in:

It enables the creation of a complete, verifiable, and traceable business cycle.

II. At its core, 0110 is essentially the “integration of the three streams”

Many sellers find 0110 complicated, but in reality, there is only one core principle:

The flow of goods, the flow of funds, and the flow of documents are consistent.

In other words, as people often say:

“The Unity of the Three Streams.”

In a nutshell:

• The goods were actually exported;
• Actual return of funds;
• The invoices correspond accurately;

The entire business chain can form a complete closed loop.

Why are regulators placing increasing emphasis on this now?

Because many cross-border issues in the past were, at their core:

The business actually exists,
But the chain is incomplete.

For example:

• The goods were shipped, but no formal customs declaration was filed;
• Sales were made, but no foreign exchange was received;
• There is revenue, but no cost invoices;
• The store entity and the exporting entity do not match;
• A Hong Kong company receives payments, but there is no corresponding business chain in mainland China.

These issues may still be handled somewhat vaguely in the early stages, but as data becomes more transparent in the future, they will become increasingly difficult to explain.

And the biggest advantage of 0110 is:

It naturally aligns with regulatory logic.

III. How exactly does general trade under Code 0110 work?

Many people think the 0110 process is particularly complicated.

In fact, at its core, it is essentially a standardized export process.

However, compared to “gray mode,” it places greater emphasis on:

The main body is complete, the materials are complete, and the process is complete.

The entire process can be broadly divided into four steps.

Step 1: The company must first obtain export qualifications.

To engage in 0110 exports, a company must first possess proper export qualifications.

Compared to before, the process has been simplified considerably.

Generally, companies only need to:

The scope of business listed on the business license includes:
“Import and Export of Goods” or “Import and Export of Technology,” etc.,

Then complete:

• Customs Registration of Shippers and Consignees;
• Electronic Port Activated;
• Forex Directory Registration;
• Export Tax Rebate (Exemption) Filing;

You’ll basically be ready to start formal export operations.

That is to say:

0110 is not “exclusively for large enterprises.”

Many cross-border sellers today actually have what it takes to succeed.

Step 2: Prepare all export documents

The most essential part of 0110 is actually:

Documentation Standards.

This is because, regardless of whether the review is conducted by customs, tax authorities, or banks, they all examine whether the documentation is logically consistent.

Typically, you'll need to prepare:

• Trade Contract;
• Commercial Invoice;
• Packing List;
• Bill of Lading or Air Waybill;
• Customs Declaration;
• HS Code Data;
• Special regulatory documents (if required).

Many sellers tend to overlook HS codes.

In fact, HS codes not only affect customs clearance, but also directly relate to:

• Tax refund rate;
• Customs supervision;
• Overseas customs clearance;
• Product Compliance.

Entering the wrong code may lead to a series of risks down the line.

Step 3: Formal Export Customs Declaration

Companies may file their own declarations or entrust a customs broker to handle the process.

Currently, this is mostly done through:

“Complete the electronic declaration via the ”Single Window“ or the ”H2018 System.”

After customs review, a decision will be made based on the nature of the goods:

• Whether to inspect;
• Does this involve commodity inspection?;
• Is additional information needed?

Once the inspection is approved, the goods are officially released for export.

This step may seem like just an “output,” but it will actually form a very critical data chain for the future.

Because of what happened next:

Tax Refunds,
Foreign Exchange Receipts,
Profit Accounting,

All of them will be linked to this export customs declaration data.

Step 4: Receiving Foreign Currency and Export Tax Rebates

The main reason many companies truly value 0110 is actually:

Export tax rebates.

After the goods are exported, the overseas customer completes the payment, and the company receives the foreign exchange in compliance with regulations.

Subsequently, companies may, upon presentation of:

• Export Customs Declaration;
• Special VAT Invoice;
• Foreign Exchange Receipt;

Apply to the tax authorities for an export tax refund.

The most critical focus of a tax audit is:

“Are the three streams consistent?”

For example:

• Declared value;
• Invoice amount;
• Amount of foreign exchange received;

Is there a corresponding entry?

If:

Goods, funds, and bills can form a complete closed loop,

The tax refund process is actually relatively consistent.

Currently, the efficiency of tax refunds varies among different companies; some can be processed in as little as 5 business days, while in some cases, the review process may take longer.

IV. Why Are More and More Companies Abandoning the “Gray Area” These Days?

In the past, many sellers felt that:

Paying by export is cheaper and more convenient.

But the problem is:

Cost savings in the short term may turn into even greater risks in the future.

Because the direction of industry regulation is now very clear:

Transparency of platform data,
Enhanced Anti-Money Laundering Measures at Banks,
Customs Data Networking,
Tax big data comparison,

In the future, many “historical issues” will gradually come to light.

Especially:

• Unable to explain the source of the funds;
• Failure to provide proof of actual export;
• Unable to obtain a valid cost invoice;
• Mismatch between retail outlets and export entities;

These issues will increasingly affect the long-term operations of businesses.

Many sellers are only now beginning to realize that:

A truly stable cross-border business is certainly not sustained by “gray-area practices,” but rather supported by a comprehensive compliance system.

And the value of 0110 lies precisely in:

It is a formal business model that has been proven over the long term, is sustainable over the long term, and can be scaled over the long term.

V. 0110 Is Not a “Traditional Model,” but the Foundation for Future Cross-Border Compliance

When many people hear “0110,” they immediately think of “traditional foreign trade.”

But in reality, more and more established cross-border companies are now returning to the 0110 model.

Because what will truly set industries apart in the future isn’t just operational capabilities, but rather:

• Financial and Taxation Capabilities;
• Global compliance capabilities;
• Fund management skills;
• Risk management capabilities.

Especially as the cross-border industry gradually enters the “era of transparent tax reporting,” legitimate exports, legitimate foreign exchange receipts, and legitimate tax refunds will become increasingly important.

0110 is not, in essence, a simple code.

What it really represents is:

Does the company have the capacity to operate over the long term?

The cross-border industry is sure to become increasingly regulated in the future.

And the companies that can truly go the distance are inevitably those willing to establish transparent and compliant systems early on.