Used smartphones to answer calls to action

Research by the China Association of Circular Economy indicates that approximately 80 million secondhand mobile phones were recovered through formal channels in China last year. With an average unit price of 2,000 yuan, the market size of secondhand mobile phones in China could reach 160 billion yuan, it said.

However, China still needs to overcome a series of obstacles to fully tap into the vast international market for secondhand mobile phones.

China currently lacks a comprehensive system of unified national standards for secondhand mobile phones, covering key areas such as device testing and valuation, requirements for sales platform's after-sales service, and export quality certification, Wang said.

The domestic standards have yet to align effectively with internationally recognized certification systems, resulting in higher compliance costs for businesses, he added.

Currently, exporters have to grapple with heavy tax liabilities at home and abroad, eroding profitability.

The combined tax rates for such exports are 30 to 50 percent in China, including 13 percent value-added tax, said Wang. Meanwhile, some countries involved in the Belt and Road Initiative impose 10 to 25 percent tariffs on secondhand phones, which far exceed those in Europe and the US.

Liu recommended that national authorities, including the State Taxation Administration and the ministries of finance and commerce, formulate policies to progressively extend the preferential 0.5-percent VAT rate, currently applicable to used cars, to all secondhand goods.

She also suggested that the ministries of foreign affairs and commerce negotiate bilateral or multilateral agreements with BRI countries to lower tariffs and consumption taxes on secondhand goods.

Another priority is to optimize customs clearance processes for secondhand products, drawing on the export policies for used cars, she said.

Relevant authorities should reference the used car export policy to appropriately reduce or waive the requirement for submitting historical VAT invoices for secondhand goods during customs declaration, she noted.

Liu recommended the establishment of a green channel for secondhand goods exports to enhance clearance efficiency and bring costs down for businesses.

Pilot programs in regions with strong business ecosystems and mature markets for secondhand goods — such as Shanghai, Shenzhen in Guangdong province and Beijing — can be used as models to gain practical insights into the process of exporting used products, she added.

houliqiang@chinadaily.com.cn