“The ”Safeway model" has been targeted, ODI filing is the amulet of compliance

       Recently, Guangzhou cross-border circle completely exploded! Many do Amazon, independent station bosses, one after another received the notice of the relevant departments, requiring a detailed description of their own “Safeway model” operation, a time of panic.

       As a national cross-border e-commerce town, Guangzhou has nearly 100,000 cross-border related enterprises, many of which are small and medium-sized sellers, long-term reliance on the “Safeway model” to break down the structure, tax savings, think this is “industry subterfuge. But now, this regulatory red line has been officially tightened - the old ways of drilling policy loopholes, completely unworkable.

One,Disassembling the “Safeway model”: the pits that Guangzhou sellers often step on

 Many Guangzhou cross-border bosses may not have heard of the “Safeway model”, but the probability of using a similar operation - the core is the “store, logistics, capital” split into three pieces, which seems to solve the problem of tax burden and customs clearance, but in fact buried a huge tax risks. Tax burden and customs clearance problems, but in fact buried a huge tax hidden danger.

Combined with Guangzhou's cross-border e-commerce operation scene, the core of this model is the three “separation”, every step is stepping on the regulatory red line:

1. Separation of subjects

Registered in Guangzhou, a shell company, specifically used in Amazon, Sell-through and other platforms to open stores, but the company is not purchasing goods, not responsible for shipping, the real operator is behind the affiliated companies or individuals, equivalent to “hanging sheep's head to sell dog meat”.

2. Separation of logistics:

The goods sold by the store are not declared by the shell company that opens the store, but are handed over to the freight forwarding company with import and export rights in Guangzhou, or other companies within the group, and the logistics and the main body of the store are completely disconnected.

3. Separation of funds:

Platform back into the public account of the company in Guangzhou, but through a third-party payment, directly to Hong Kong or other offshore affiliates account, equivalent to the “separation of money and goods”, the account is not at all right.

4. Summary:

Why is this model so hot in Guangzhou cross-border circle? To put it bluntly, it can help sellers solve three major pain points in the early years: avoid the high tax burden in the Mainland, deal with the trouble of customs clearance of scattered shipments of multi-store, bypassing the “no invoice purchasing” of the input gap, and keep the profits firmly in their own hands.

But good does not mean safe! The dead end of this game is: many Guangzhou bosses just focus on getting the money out, but not to the domestic and foreign companies to do compliance endorsement, even the most basic "store authorization agreement". In the eyes of the regulator.This is a muddled account, related transactions pricing is not clear, once the penetrating audit, you have to self-certify that the company has a “substantial operation”, otherwise back taxes, fines can not escape.

 Second, ODI filing is not a multiple choice question, it is a must-answer question for overseas compliance. 

With the increasingly stringent regulation of big data, the way to avoid tax by splitting the structure has been completely blocked. For Guangzhou cross-border enterprises, wanting to have their domestic and foreign structures officially recognized, and letting their funds go straight and clear.ODI Filing (Outbound Direct Investment Filing)This level must be passed.

First to Guangzhou bosses to explain in layman's terms: ODI filing, simply put, Guangzhou enterprises to go overseas to open a company, set up an account, do investment, you must first to the Guangzhou Development and Reform Commission, the Commerce Bureau, the Foreign Exchange Administration of these three departments to report, the equivalent of your cross-border business to do an “official pass”.

Guangzhou cross-border e-commerce, foreign trade enterprises, ODI filing is not “superfluous”, but to solve the two core needs of the key, especially for overseas layout of the Guangzhou sellers:

ODI filing is a must-answer question for overseas compliance!

✅1. “Identification” of outbound funds:

Without ODI filing, it is difficult to remit your investment money, overseas warehouse building fees, advertising and placement fees through a compliant bank in Guangzhou. Many Guangzhou bosses have stepped into the pit: they want to make operation payment to overseas companies, but when the bank audits them, they find that there is no ODI filing, and they directly reject the remittance application, which leads to the stagnation of overseas business.

✅2. Find a “landing place” for repatriated profits.”

This is the Guangzhou bosses the biggest headache - offshore companies make money, want to take back to the company in Guangzhou in the form of dividends, the bank checks extremely strict.Without an ODI filing, there's no way to prove that the offshore company is your regular investment.Profits can only lie in the overseas account, can not come back and can not move, equivalent to “earned money but can not spend”.

✅3. Summary: Here is a reminder to Guangzhou bosses

Even if you just registered a small company in Hong Kong for receiving cross-border returns.ODI filing is also required. According to the latest regulations of the Guangzhou Foreign Exchange Administration, unauthorized offshore investment without ODI filing can be fined up to 5 million yuan, which will also affect the subsequent import and export qualification of the enterprise.

Conclusion:

Guangzhou, as a first-tier city for cross-border e-commerce, has strong policy support but also stricter regulation. According to statistics, since 2026, the cross-border enterprises in Guangzhou for ODI filing have increased by 47% year-on-year, and more and more Guangzhou bosses realize that: compliance is the way of the long term.

If you are Guangzhou cross-border e-commerce, foreign trade enterprisesIf you are still relying on the “Safeway model” or have an overseas company but have not applied for ODI filing, you must remedy the situation as soon as possible - don't wait for the investigation before you get anxious, take the initiative to build a solid foundation for compliance, which is the only way to be responsible for the enterprise.

If you are a Guangzhou enterprise(math.) genusIf you are reevaluating the structure of the sea or need related information, welcome to scan the QR code below (WeChat/telephone contact are both available) to contact us at any time, we will create the most suitable program for you!

To receive information + quotation, please contact me (WeChat/telephone inquiry: 1304348584).