Circular on Improving the Import Tax Policy on Cross-border E-commerce Retail

(Issued by the Ministry of Finance, the General Administration of Customs and the State Administration of Taxation on November 29, 2018 and effective as of January 1, 2019.)

Cai Guan Shui [2018] No.49

Finance departments (bureaus) of the provinces, autonomous regions, municipalities directly under the central government and cities with independent development plans, the Finance Bureau of the Xinjiang Production and Construction Corps, Guangdong Sub-Administration of China Customs, directly subordinate customs offices, offices of the State Administration of Taxation of the provinces, autonomous regions, municipalities directly under the central government and cities with independent development plans, and special commissioners offices of the State Administration of Taxation:

With a view to promoting the healthy development of the industry of retail import of cross-border e-commerce and creating a market environment characterized by fair competition, we hereby notify you on matters relevant to improving tax policies for the retail import of cross-border e-commerce as follows:

1 . The maximum amount on any single transaction of retail import goods through cross-border e-commerce is raised from Rmb2,000 to Rmb5,000, and the maximum annual transaction amount is raised from Rmb20,000 to Rmb26,000.

2 . Where the dutiable value exceeds the Rmb5,000 limit on a single transaction but is less than the Rmb26,000 limit for transactions in one year and there is only one item on the order, duties, import-stage value-added tax and consumption tax may be imposed in full at the tax rates for the item at the time it is imported through the cross-border e-commerce retail channel and the transaction amount shall be counted against the total transaction amount for the year. However, if the total transaction amount for the year exceeds the limit on transactions for the year, matters shall be handled in accordance with the administration of general trade.

3 . E-commerce imported merchandise that has been purchased is final merchandise that is to be used by the consumer himself/herself, and may not enter and be resold on the domestic market. In principle, the “bonded online shopping + self-pickup offline” model is not permitted anywhere outside zones under special customs surveillance for goods imported through bonded online shopping.

4 . We would ask that you continue to handle other matters in accordance with relevant provisions of the Ministry of Finance, General Administration of Customs and State Administration of Taxation, Circular on the Import Tax Policy on Cross-border E-commerce Retail (Cai Guan Shui [2016] No.18).

5 . With a view to keeping up with the development of cross-border e-commerce, the Ministry of Finance will, in concert with relevant departments, revise the List of Import Goods of Cross-border E-commerce Retail and publish it separately.

This Circular shall be effective as of January 1, 2019.