A Comprehensive Guide to China Cross Border E-Commerce Regulatory Reforms

中国跨境电商法规改革分析

Echo Cao （ChemLinked）2016/06/01

A Comprehensive Guide to China Cross Border E-Commerce Regulatory Reforms 2

Contents/

Chapter 1

Chapter 2

Chapter 3

Chapter 4

Chapter 5

Chapter 6

Chapter 7

Growth of CBEC Fueled by Loose Regulatory Environment

Regulatory U-TURN for CBEC Commodities

One Year Grace Period

Limits for Personal Purchasing of CBEC Commodities

New Tax System for CBEC Commodities from 8 Apr 2016

Food Products That Can Be Imported Through CBEC

A New Supervision Model for CBEC?

3

3

4

5

5

6

8

A Comprehensive Guide to China Cross Border E-Commerce Regulatory Reforms 6

Therefore, the final tax to pay for a CBEC food product

should be calculated according to the formula:

Final tax=dutiable value (actual transaction price + domestic

logistic fee + insurance fee) * 11.9%

When the Ministry of Finance adjusted tax for CBEC goods, it

also adjusted the personal postal article tax at the same time

in order to optimize the tax system, facilitate tax payment

by travelers and consumers and increase the efficiency of

customs clearance for personal goods. The previous four tax

levels (10%, 20%, 30% and 50%) have been consolidated into

three levels (15%, 30% and 60%). Commodities not included

in the positive lists of CBEC when delivered to China are

subject to the new personal postal article tax. Food and

beverages always fall under the level one tax rate which

increased from 10% to 15%.

FOOD PRODUCTS THAT CAN BE IMPORTED THROUGH CBEC Product categories on various CBEC platforms are covered

by two batches of positive list. There are additional

requirements for some product categories which fall within

the scope of China’s premarket approval regulatory system,

such as infant formula, health food (including nutrient

supplement), medical food, etc.

Infant formula (listed in the first batch of positive list)

HS Code Article Remark

19011010 Infant formula

can be imported through

CBEC but should

approved by CFDA prior

to import

China CFDA has not published the registration rule for infant

formula yet. The Ministry of Finance after discussion with

CFDA stated that unregistered infant formula can continue

to be imported to China until 1 Jan 2018, including those

traded through CBEC.

CFDA also issued a grace period for all unregistered infant

formula. The registration rule “Administrative Measures

for Registration of Infant Formula Formulations” should

be issued this year in order to leave a transition period

for IF manufacturers to finish product registration before

implementation. The draft regulation is currently open

to opinion and feedback among WTO members (see CL

Food News on 15 Jan 2016). After the registration rule is

implemented, every domestic and foreign IF manufacturer

will be limited to 3 infant formula product lines. There are

currently 104 domestic IF manufacturers approved by CFDA

and 73 overseas IF manufacturers approved by China CNCA.

Based on forecasts the number of IF brands placed on the

Chinese market will be around 530.

Overseas IF manufacturers and exporters should be well

aware of the pending deadline of 1 Jan 2018. After that, only

CFDA-approved infant formula can be exported to China.

A Comprehensive Guide to China Cross Border E-Commerce Regulatory Reforms 9

Multiple users

per year

Single user

$1299

per year$3699

Food Regulatory Analysis and Consultation

Free

Single

Multiple

√

√

√

√

√

√

√

√

√

√

√

√

x x x

√ (Limited) Only 3 E-translationdocuments download

√

Negotiablex on demand

Negotiableon demand

Negotiableon demand

Regulatory Information service

NewsletterRegulatoryDatabase

CL-Analysis

RegulatoryNews

CustomizedAlert Service

E-translationStore

Translation Service (Translate Chinese Food Regulations and

Standards into English )

Food Compliance Services (remove regulatory barriers for

exporting food products to China)

· 7-DAY MONEY BACK GUARANTEE· Note: Price subject to final confirmation of ChemLinked.