ANNOUNCED AS TEMPORARYNo
On 23 March 2016, the Chinese Ministry of Finance announced changes to the import taxes on certain cross-border transactions via e-commerce. Hereto, certain goods falling under a value thresholds of RMB 2,000 (approx. USD 309) for a single transaction and RMB 20,000 (approx. USD 3,090) annually for individuals are subject to lowered import taxes.
Within these value thresholds custom duties on the subject goods are provisionally reduced to 0%; at the importing stage the exempted tax amount of VAT and consumption tax is abolished; and lastly 70% of the payable tax amount is provisionally levied. Any goods exceeding the value thresholds are subject to full taxes and duties. The measure comes into force on 8 April 2016.
Subsequently, the Chinese authorities released two lists of products eligible for the above treatment. The lists contain a total of 1400 products at the HS 8-digit level.
An updated version of the policy was released in November 2018, implementing new rates from January 2019. Please see related act for more information.