1 March 2016
New Regulations on Cross-Border E-Commerce (Import)
The Ministry of Finance, China Customs, the State Administration of Taxation jointly announced new policies on cross-border e-commerce (CBEC) on 24 March, 2016. The new policy will be effective from 8 April, 2016.
- The personal postal articles tax on imported products applied on CBEC (import business) will be replaced by a new tax formula.
- New transaction limit per order via CBEC platform will be increased from 1,000 yuan to 2,000 yuan.
- New upper limit per person each year (or the “annual cap”) will be set at 20,000 yuan.
- For single orders with price tags larger than 2,000 yuan, or total transaction value over 2,000 yuan, taxes applicable for general import will be levied.
- For single orders with price tags less than or equal to 2,000 yuan, or total transaction value under or equals to 2,000 yuan, a new tax will replace the tax for personal postal articles. The new tax will include import tariff + VAT + consumption tax, where the actual tax payable to the Custom will be 70% of the calculated taxable amount. Current import tariff is temporarily set to 0%.
- Meanwhile, the personal postal articles tax will be adjusted. The four rates (10%, 20%, 30%, 50%) will be replaced by the new rates which are categorized into 15%, 30%, and 60% levels.
The major objectives of the regulation are to better regulate the CBEC channels and reduce policy loopholes, ensure tax collection, and to reduce the price gap between CBEC and general import, so as to ensure a fair market environment for all players across online and offline channels.
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