The State Council executive meeting convened on 21 November 2018 decided that the current policies implemented starting from April 2016 with respect to the cross-border e-commerce pilot program (CBE) will continue after the current “grace period” expires on 31 December 2018.

The highlights of the decisions announced at the meeting include:

  1. The pre-importation registration or approval requirements for certain special products (e.g., infant milk formula, cosmetics, medical devices, health food, etc.), which would be applied if they are imported as ordinary commercial goods, will continue to be waived after 31 December 2018. Unlike the previous announcements which simply extended such waiver for an additional period, this waiver has now been extended indefinitely.
  2. The current tax policy under which customs duties are exempted and import VAT and consumption taxes are collected at a 30% discount for the products imported under CBE will continue to be implemented.
  3. The scope of the “positive lists”, which contain the tariff categories for the products permitted to be sold under CBE, will be expanded to include 63 new tariff categories. The list of these new tariff categories has yet to be announced.
  4. The value limit for each shipment under CBE will be increased from RMB2,000 to RMB5,000 in order to allow importation of high-end consumer goods, and the annual quota of the goods imported by each individual under CBE will be increased from RMB20,000 to RMB 26,000.

Business Law Digest is compiled with the assistance of Baker McKenzie. Readers should not act on this information without seeking professional legal advice. You can contact Baker McKenzie by e-mailing Danian Zhang (Shanghai) at danian.zhang@bakermckenzie.com