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New China regulations on e-commerce borders

New China regulations on e-commerce borders


From 8 April, 2016 onwards, China has implemented new tax policies for cross-border B2C import e-commerce. Cross-border e-commerce (CBEC) imported goods will no longer be charged by personal postal articles tax. Instead, import tariff, value-added tax (VAT) and consumption tax will be imposed.

Under the new policies, transaction limit per order will be increased from 1,000 yuan to 2,000 yuan; new upper limit per person per year will be set at 20,000 yuan. For orders within the transaction limit, the new tax will include import tariff, VAT and consumption tax, where the actual tax payable will be 70 per cent of the calculated taxable amount. Import tariff is temporarily set at 0 per cent. The tax exemption applicable to the previous postal tax regime is abolished.

On 7 April, 2016, 11 government authorities,including the Ministry of Finance, National Development and Reform Commission, Ministry of Industry and Information Technology,Ministry of Commerce, General Administration of Customs and State Administration of Taxation, jointly released a positive list for CBEC imported goods.

The positive list will replace the previous negative list for CBEC imported goods; only goods that are on the list are eligible to be sold via CBEC channels. The positive list has 1,142 types of product categories.These products are mostly daily consumer goods with solid demand in China. According to the China Customs, these products can satisfy supervision requirements of authorities concerned, and can enter China via express delivery or direct mail. Product categories on the list include food and beverages, apparel and footwear, home appliances, cosmetics, paper diapers, children’s toys and so on. Products on the list are exempted from submitting an import license to China Customs. Inspection and quarantine approvals are required when imported products enter bonded warehouses. Direct mailed products do not require such approvals.