Changes in Cross Border E-commerce (CBEC) Policy in 2016

  •   23 Jan 2017
  •    Angelita Hu

    2016 witnessed an array of cross border e-commerce (CBEC) policy changes.

    New taxation policy:

    Since April 8 2016, China implemented a new tax system for CBEC commodities. The new tax system was formulated based on the limits on the permitted total value of individual consumer transactions and the aggregated annual purchasing total for all goods purchased via CBEC respectively (see ChemLinked News).

    Two limits:

    • The value of a single order should not exceed 2,000 RMB;
    • The value of personal annual purchasing should not exceed 20,000 RMB.

    Purchases with a value falling within the two limits specified above will be levied at the new tax rate, which is 70% of value-added tax and consumption tax (tariff is exempted). Otherwise, CBEC commodities are subject to full tax (tariff + value-added tax + cons