Cross-Border E-commerce (B2C) in China: Extend Transition Period to the End of 2018

On 20 September 2017, Premier Li Keqiang presided over the executive meeting of the State Council. On this meeting, it is decided to further promote the construction of cross-border E-commerce (CBEC) comprehensive pilot area, and extend the transition period of CBEC (B2C) to the end of 2018.

For health food, infant formula milk powder, and foods for special medical purpose, this decision is a good news. Relevant enterprises can get more time to apply for registration/filing certificate, without influence on the importation to China through CBEC (B2C). 

Review on Policies of CBEC (B2C)

Stage I: Since 8 April 2016, the new tax on CBEC (B2C) includes customs duties, value added tax (VAT), and consumption tax. Only the commodities listed in Positive List can be imported to China through CBEC (B2C).

Stage II: Provide one year transition period for the policy of the Positive List. The deadline is 11 May 2017.

Stage III: After a period of time, the government extended the transition period to the end of 2017.

Stage IV: MOFCOM Spokesman made a statement on the general supervision arrangement after the transitional period. Since 1 January 2018, commodities imported through CBEC (B2C) will be temporarily supervised as personal belongings. The new supervision mode will be carried out in 15 cities.

Stage V: Extend the transition period to the end of 2018.