Switch to Domestic Sales

Switch to Domestic Sales refers to goods originally planned for export or already produced for export being diverted to the domestic market due to reasons such as cancellation of overseas orders, trade barriers, exchange rate fluctuations, or quality not meeting foreign buyers' requirements. It is commonly used by foreign trade enterprises facing sudden risks to liquidate inventory and recover funds. Use cases include: domestic sales of bonded materials under processing trade, export-to-domestic sales, and disposal of unsold cross-border e-commerce goods. Precautions: (1) import duties, VAT, and deferred tax interest on imported materials must be paid (under processing trade); (2) product standards may need to shift from foreign to domestic standards, e.g., electrical appliances require 3C certification; (3) domestic sales channels, branding, and settlement methods differ greatly from foreign trade and require repositioning. Difference from 'export-to-domestic sales': the latter emphasizes the original export purpose, while the former can cover goods diverted before export. Difference from 'domestic trade': switching to domestic sales is temporary or passive, while domestic trade is a long-term strategy. Enterprises should pay attention to tax compliance, product certification, and market adaptation.