New Cross-Border E-Commerce Regulation: Removal of Overseas Warehouse Registration – Lower Entry Barriers, Higher Compliance and Competitive Pressure-Iota

Products

News

Office Address:	Sunmoon Science Park, 985 Xingzhong Road, High-Tech Zone, Bengbu, China
Factory Address:	Mohekou Industrial Park, Huaishang District, Bengbu, Anhui, China
Contact:	Nathan Zhang
Phone:	0086-552-19805521900
FAX:	0086-552-3822922
Mobile:	19805521900/18119733779
WebSite:	www.siliconeoil.cn www.siliconeoil.net
Email:
QQ:	729118868

News > Dynamic industry > New Cross-Border E-Commerce Regulation: Removal of Overseas Warehouse Registration – Lower Entry Barriers, Higher Compliance and Competitive Pressure

New Cross-Border E-Commerce Regulation: Removal of Overseas Warehouse Registration – Lower Entry Barriers, Higher Compliance and Competitive Pressure

Key Policy Change

The core adjustment of the new regulation is the removal of the overseas warehouse registration requirement.
Previously, sellers had to submit qualifications, warehouse addresses, and logistics contracts to platforms, customs, and tax authorities – a process that was time-consuming and costly.
With the new rule, sellers are no longer required to complete this registration procedure. They can directly operate overseas warehouses (such as replenishment or stock transfer), significantly lowering operational barriers.

Impact on Sellers

Positive Impacts: Cost Reduction and Greater Flexibility

Reduced operating costs: With registration eliminated, sellers save on document preparation, third-party services (such as agency filing), and deposits. Capital can be more efficiently allocated to product selection and marketing.
Simplified process and faster response: Without waiting for registration approval, sellers can quickly adjust warehouse inventory in response to market changes (holiday sales, stockouts), minimizing sales losses.
Lower entry threshold: New and small sellers are no longer discouraged by complex procedures. More players can enter the cross-border e-commerce sector, enhancing market vitality.

Negative Impacts: Compliance Pressure and Intensified Competition

Compliance risks shift from “ex-ante” to “ex-post”: Registration previously acted as a form of pre-approval. Without it, regulatory authorities may rely more on post-event inspections (customs checks, tax audits). Errors in customs declarations, tax underreporting, or unclear product origins may lead to clearance delays, fines, or store penalties.
Stricter platform requirements possible: Platforms may impose substitute requirements (such as logistics documents, warehouse lease contracts, quality reports) or use data monitoring (delivery speed, return rates) to constrain sellers. Less efficient sellers risk being downgraded.
Intensified competition and profit compression: Lower entry barriers attract more sellers, including low-quality operators. Increased supply of homogeneous products can trigger fiercer price wars. Low-cost, low-quality sellers may damage consumer trust, which could spill over and harm compliant sellers.
Increased tax and financial risks: Overseas warehouses involve complex cross-border tax obligations (e.g., VAT in the destination country, customs duties) and foreign exchange settlement. Some sellers may ignore compliance out of opportunism. Once audited, they may face back taxes, late payment penalties, and heavy fines.

分享到

Feedback to "Iota Silicone Oil (Anhui) Co., Ltd."