context: China first issued regulatory policies on CBEC retail import in April 2016, which postponed implementation to end 2017 and again to end 2018. The latest postponement is hardly surprising given the unchanged implementation bottleneck and the current momentum to encourage consumption and import.
State Council announced on 21 November 2018 it will postpone the regulatory policy on cross-border e-commerce (CBEC) retail import, prolonging the grace period for a third time—this time without a deadline.
In addition, regulatory policies are further relaxed
- CBEC retail imports will be regulated as personal goods exempt from import licensing, registration and filing requirements
- the number of pilot cities with preferential policies increased from 15 to 22
- 63 tax items are added for preferential tax policy eligibility, and the maximum value of products eligible for tax preference is raised from C¥2,000 to C¥5,000; the maximum yearly transaction value is raised from C¥20,000 to C¥26,000 per person
- improve export rebate policies to support CBEC exports
The announcement also called for setting up a modern logistics system of international standards
- build key logistics hubs in cities with sound industrial development
- consolidate the existing logistics sector through market forces
- streamline administrative procedures and open up the logistics sector for private and foreign investment
- develop new business models such as supply chain logistics, e-commerce logistics, green and smart logistics
Li Mingtao 李鸣涛 Ministry of Commerce E-commerce Research Centre director says the latest announcement has dispelled e-commerce practitioner doubts. Li says data from e-commerce pilot zones during the two-year grace period indicates unexpectedly high demand for overseas products, prompting the government to raise the product value upper limit of product value and include more products on the positive list.
Despite the relaxation, CBEC platforms will be held more accountable for quality control, which is in line with E-Commerce Law, adds Li, noting that platforms will need to act as gatekeepers by establishing safeguarding mechanisms.