China's General Administration of Customs has announced that ten pilot zones can defer the implementation of new tax rules on cross-border e-commerce for a year.
According to the new supervision measures, these include Tianjin, Shanghai, Hangzhou, Ningbo, Zhengzhou, Guangzhou, Shenzhen, Chongqing, Fuzhou and Pingtan.
First-time import licensing, and the registration and filing of cross-border commodities, including cosmetic products, baby formula, and special food for medical use, have been temporarily suspended in the pilot cities.
Other regions which apply the same direct purchase model can put the above provisions on hold as well.
A new tax policy has been applied to cross-border e-commerce since April 8, to level the playing field between e-commerce platforms and traditional retailers and importers.
Under the rules, most purchases made overseas are levied with a higher tax rate, as they are no longer classified as "parcels," but charged in the same way as imported goods.
Customs officers believe the newly released supervision measures can facilitate a smooth transition of the tax policy, and enhance a healthy development of cross-border e-commerce in the country.
