That is to say, in the past 5 years, an average of 10 overseas brands enter the Chinese market for the first time through Tmall.HK per day. The new regulation makes it harder for Daigou to go about their business illegally The list, also dubbed ‘CBEC positive list’, has taken effect this year. Terms and Conditions          Privacy Policy, China Updated the Positive List: 92 More Categories are Welcomed to be Imported into China, 71-75 Shelton Street, Covent Garden, London, England, WC2H 9JQ. There are two main import models, which foreign companies can utilise to ship the products to their end buyer in China. Bonded warehouse mode. On April 8, two days before the implementation of the new tax system for CBEC goods (see CL news on Mar 25), China Ministry of Finance together with 11 other departments including the CFDA published the “List of CBEC Retail Imported Goods” to define the applicable scope of the new tax. In 2004, the input tax credit scheme for CENVAT The goods included in the Positive List are exempt from import licences. The new allowed categories notably include sparkling wine, beer, health care products, and fitness equipment. Along with the new taxation system, this was a major setback for foreign exporters since products such as fresh food, seafood, certain nutritional products (supplements, e.g. CBEC platforms are highly popular among Chinese consumers and have become one of the major channels to buy authentic foreign products. Angelita Hu. allowed to enter. must be subject to import approval in accordance with relevant national laws and regulations. “Positive list” of items that are. Moreover, products must comply with the tax policy related to imported goods to be eligible for import through the cross-border e-commerce method. Hot-selling products are added on the list and are proceeded in a most efficient way. The government did not lower consumption tax, which means consumers still have to pay for consumption tax on CBEC imported products including high-end skincare and cosmetics (15%), fine jewelry (10%) and red wine (10%). This approach was prone to ‘tax avoidance’. On the first day of 2020, Cross Border E-Commerce (hereafter CBEC) has welcomed benefits due to the implementation of a new policy. Second, imported positive list items will continue to enjoy zero tariffs within a set quota and had their import VAT and consumer tax collected at 70% of the statutory taxable amount. The volume of CBEC retail imports reached RMB78.58 billion in 2018 (Renminbi, Chinese yuan), an increase of 39.8% on the year before according to Chinese Customs’ statistic. On the first day of 2020, Cross Border E-Commerce (hereafter CBEC) has welcomed benefits due to the implementation of a new policy. Both the new taxation system and the positive list’s aim is to try to even cross-border e-commerce channel with traditional retail channel. Currently, there are 21 categories of cosmetic products listed on the positive list, including cosmetics. GET CONNECTED. Figure 3 On April 7th 2016, China announced a positive list for commodities traded using cross-border e-commerce (CBEC). CBEC trading activities in non-pilot cities should refer to the relevant regulatory authorities for CBEC guidelines. For the purpose of promoting the sound development of retail imports in CBEC, the List of CBEC Retail Imports (2019 version) (also known as “Positive List”) came into force on January 1, 2020 in China. China cross-border e-commerce (CBEC) retail imports list (This is also known as the 'Positive List') 16/5/2019. basic vitamins and fish oil, etc.) In April 2016 two lists (list 1 (EN, CN) and list 2 (EN, CN) comprising over 1200 items were published. At present, consumption tax is levied at 15% on imported high‑end cosmetics and 5% or … This is the breakthrough movement that China's CBEC policy involves pharmaceutical products. At the same time, Tmall has upgraded the scale and service capabilities of Tmall Partners (TP) to help more overseas premium brands accelerate their entry into the Chinese market through CBEC platforms. NOT affected by new CBEC taxation and positive list, but new postal tax rule A bit lower effective for Custom clearance (according to the Custom daily routine) FU N. G. New CBEC Taxation. to China through CBEC, and will also influence greatly overseas businesses of different food sectors operating within this space. This Positive List includes 1,142 types of commodities, which partly or completely prohibits the import of dairy products, infant formula, health food, foods for special medical purpose (FSMPs), fresh foods, etc. In April 2016, government offices jointly released a “positive list” of 1293 goods that were eligible for CBEC sale, (Source: FBIC Group) replacing an earlier list that had included only things that weren’t for sale. This CBEC guidebook was written by: Thymen Ballering, trainee Economic and Commercial Affairs Department of the Consulate General of the Kingdom of the Netherlands Shanghai This Guidebook has been co-written thanks to the inputs of experienced entrepreneurs in China’s cross-border e-commerce sector. Second, imported positive list items will continue to enjoy zero tariffs within a set quota and had their import VAT and consumer tax collected at 70% of the statutory taxable amount. KEY TERMS •CBEC = Cross Border eCommerce •CBEC Bonded Zone = Areas approved to handle CBEC products •Free trade zones ≠ CBEC •ChAFTA = China Australia Free Trade Agreement •CBEC ≠ ChAFTA •VAT = Value Added Tax •Positive List = a list of product allowed through CBEC since 8 April •GB Standard = ‘Guobiao’ or national standard –applies to food Since then, Chinese parents have bought formula from American and European companies. In December 2019, 13 authorities extended the “List of Goods under Cross-border E-commerce Retail Importation” to allow more foreign goods to be delivered to Chinese consumers through CBEC retail importation program. The cities included in the CBEC tax-rebate were expanded from 15 to 37 cities, including Beijing and Shanghai. purchased by CBEC shoppers on CBEC platforms during March 2017 to March 2018. Lingang to fuel growth in Shanghai. In December 2019, 13 authorities extended the “List of Goods under Cross-border E-commerce Retail Importation” to allow more foreign goods to be delivered to Chinese consumers through CBEC retail importation program. The Positive List - jointly released by the Ministry of Finance (MOF) and ten other ministries and government bodies - includes tariff codes and product names of permitted CBEC categories encompassing almost 1,300 commodity categories in total, including foods and drinks, clothes/shoes/hats, some cosmetics, diapers, etc., along with various notes, which provide additional … Previously, pharmaceutical products were severely restricted to CBEC. Animal and plant products prohibited from being carried or mailed into China (This is also known as the ‘Negative List') 16/5/2019. The Positive List. The 2019 version of this list, which has taken effect since January 1, 2020, contains 92 new taxable items compared with the previous version, including frozen aquatic products, alcohol, and consumer goods. The list supplemented 151 types of commodities but no cosmetics categories were included. Goods not within the positive list are no longer allowed to be exported to China through CBEC after 8 Apr. Copyright © 2019 EC LINKER. If you need more advice, Please visit our Consultancy &Service page or contact us by booking a consultation here. With the establishment of the Positive List, this practice has now changed. CBEC’s inextricability from social media, its payment and logistic solutions and subjects related to localisation and operations, such as IPR-protection and marketing. Luckily, 8 days after, Chinese authorities published a 151 HS code expansion including those products (although UHT milk has the remark “only for bonded-warehouse model”).  Liquid milk is a very popular CBEC product category and is heavily stocked in bonded warehouses. Food (55%), Cosmetics (49%) and Shoes, Bags & Fashion (48%) were the most purchased by CBEC shoppers during the surveyed period. This Positive List involves a total of 1321 commodity categories, categorised in 8-digit HS codes. To export your products in China, you’ll get 3 different choices. How does the shipping work? Universal Postal Union (UPU):An informal technique that allows you to send small parcels in China. Additionally, the Chinese government decided that only the commodities listed in these Positive Lists can be imported to China through CBEC (B2C). It is important to note that selling products via CBEC has different rules than the general trade. Additionally, the Chinese government decided that only the commodities listed in these Positive Lists can be imported to China through CBEC (B2C). So far, goods included in the CBEC retail imports list have enjoyed zero tariffs within a set quota, and had their import VAT and consumer tax collected at 70% of the statutory taxable amount. According to Tmall.HK, the list of hot-selling brands was specially established based on consumer demand and market demand, and the purpose is to establish businesses with good brands to jointly provide consumers with high-quality goods and services. The Implementation Plan clearly identified 10 key tasks for the construction of the Beijing Comprehensive Pilot Zone, the most notable of which were exploring the use of CBEC models to import pharmaceutical products. 2. acconsultant.com.au. In April 2016, government offices jointly released a “positive list” of 1293 goods that were eligible for CBEC sale, (Source: FBIC Group) replacing an earlier list that had included only things that weren’t for sale. Other food and personal care products were found to contain harmful substances as well. China Releases Positive List of CBEC Commodities . It included 1142 HS codes, meaning that any product not included in the list is not allowed to be imported using this channel. This is also the first time that China's CBEC policy has broken the ice in terms of pharmaceutical products. Food (55%), Cosmetics (49%) and Shoes, Bags & Fashion (48%) were the most purchased by CBEC shoppers during the surveyed period. Issue date. By far, the State Council has approved five batches of 105 comprehensive pilot zones for cross-border e-commerce (CBEC pilot zones), covering almost all the provinces except for Tibet. Compared with the preceding version (2018 version), 92 categories of imported goods, including some commodities that are in strong consumer demand in recent years, such as frozen seafood, alcohol and household appliances have been added upon the implementation of the list (2019 version). Issue date. Read more. Positive List On 7 April, 2016, 11 government authorities, including the Ministry of Finance, National Development and Reform Commission, Ministry of Industry and Information Technology, Ministry of Commerce, General Administration of Customs and State Administration of Taxation, jointly released a positive list for CBEC imported goods. In 2008 several Chinese infants died and 300,000 got sick due to a chemical – melamine – that was used as an ingredient in Chinese baby formula.A major scandal ensued. Advisory No.08/2020 dated 14.07.2020 by DGS, Bengaluru on Appeal Functionalities: Issue of APL-02 for APL-01: Issue of APL-04 and :Cause List is issued. or UHT milk were left out of the list. The Positive List - jointly released by the Ministry of Finance (MOF) and ten other ministries and government bodies - includes tariff codes and product names of permitted CBEC categories encompassing almost 1,300 commodity categories in total, including foods and drinks, clothes/shoes/hats, some cosmetics, … Written by Juliana Pereira Juliana Pereira is Vice President, Marketing at Flow Commerce. Recent Posts See All. Products on two lists of 1,293 HS codes can be imported into one of 15 approved CBEC bonded warehouse zones across China or shipped from an overseas distribution centre linked to Chinese customs authorities. This Positive List involves a total of 1321 commodity categories, categorised in 8-digit HS codes. Basically, as long as products fall within the positive list, they are allowed to enter the Chinese CBEC market subject to special notes or requirements per product, if any. The central government did not lower consumption tax, which means consumers still have to pay consumption tax on imported cosmetics and jewellery purchased through CBEC … Animal and plant products prohibited from being carried or mailed into China (This is also known as the ‘Negative List') 16/5/2019 For goods on the positive list ordered via CBEC platforms, the VAT payable by domestic consumers was cut from 11.2% to 9.1%. The central government did not lower consumption tax, which means consumers still have to pay consumption tax on imported cosmetics and jewellery purchased through CBEC platforms. New items added to the positive list. 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