Export jewelry business may face a range of challenges and doubts for many foreign trade companies that are beginning to enter, especially in the context of a wide range of products and changing market demands, how to effectively manage product information, calculate the tax refund rate and choose the right supply chain path becomes an important operating point.

Type of products and tax rates

1) Determination of the tax rate

The tax refund rate for jewelry depends on the specific HS code, but generally speaking, the tax refund rate is lower in categories such as titanium alloy bracelets, pearl bracelets, headsets and so on (like jewelry class, HS code usually starts with 71), and may even not have a tax refund. Many small pieces of jewelry, due to the low cost, often do not have a VAT invoice and therefore there is no possibility of a tax refund.

2) Tax processing

Since many jewelry suppliers may not be able to provide VAT invoices, foreign trade companies may choose to take the duty-free path through 1039 individual households or similar small-scale taxpayers to simplify tax and customs reporting processes when dealing with exports of such products.

Management of Supply Chain

1 Selection of suppliers

The geographical choice:The domestic jewelry manufacturing industry is mainly concentrated in Yuzu, Qingdao and Dongguan, etc. These areas are characteristic, such as the Yuzu market is suitable for the search for relatively low price standardized jewelry, Dongguan is known for its fine process and high quality.
2) Quality and price:When choosing a supplier, consider the quality and price of the product, as well as the manufacturing capacity and credibility of the supplier.Sometimes low prices can mean quality risk, especially exports to strict markets (such as the EU) where product safety standards must be met.

2 Testing of products

Given the safety and health requirements of the export market, such as the strict restrictions on the content of heavy metals in jewelry in the EU market, it is necessary to conduct appropriate product safety tests before export.

c) Sales and logistics strategies

1 Offering Strategy

Producing a single offer, in the face of a wide variety of products, you can take the strategy of batch and batch offerings, classify products by series or functional categories, provide detailed prices and product descriptions by category.

2 Selection of logistics

1) Transport of samples:For samples or small batches of products, quick delivery can be made by express or air freight.
2) Transportation of large quantities:For large orders, shipping is a more economical option. It should be noted that delivery terms (such as FOB, CIF, etc.) should be confirmed in advance with the customer and ensure that all costs and responsibilities are clearly allocated in the logistics process.

3 – Avoiding risks

In transactions, to prevent risks, make sure that all transaction terms are detailed in the contracts concluded with the buyer, including payment conditions, delivery deadlines and liability for breach of contract, etc. In addition, it is recommended to use secure payment methods such as credit cards to ensure the security of the transaction.

Through the comprehensive management of the above three strategies, foreign trade companies can not only effectively control the risk of exporting jewelry, but also develop steadily in complex and changing international markets.