(ECNS) -- China may introduce new polices to guide the rapid growth of cross-border e-commerce in April, with preferential support given to B2B – or business-to-business shipments, China Securities Journal has reported.
An insider in the B2C (business to customer) sector said, "(We) suddenly feel things have changed and that winter will follow Spring Festival."
Other sources confirmed China would change from its previous strong support to restrictions on the "bonded exports plus mail delivery" business model.
That approach allows credible retailers to store their products in a bonded area and be responsible for customs declarations when a customer places an order.
A personal postal item tax is levied and then the retailer mails the package to the buyer. Any amount lower than 50 yuan ($8) is eligible for a tax waiver under the old policy. It is reported that the new policy would abolish the tax waiver.
The current upper limit for tax-free products bought overseas is 5,000 yuan for each citizen when returning to China. It will be reduced to 2,000 yuan according to the new policy.
The new ruling, drafted by the Ministry of Finance, Ministry of Commerce, General Administration of Customs and other departments, has won approval of the State Council, China's cabinet, with details to be further specified, and will become effective in early April, according to the report.
The new policy will give more support to the B2B business model of cross-border e-commerce, a move designed to give greater benefits to China's real economy.
Analysts say one reason for the policy change is that supervision authorities are currently overwhelmed by exponential growth in the number of packages.
Zhang Ji, Assistant Minister of Commerce, said in January that B2B will be the main model and that direct shipments to consumers would be supplementary. He added that it suits the requirements of China's foreign trade and structural adjustment, reduces supervision needed and improves customs clearance costs.
