Logistics distribution workers sort packages. (File photo/China News Service)
(ECNS) - China will adjust import tax policies related to cross-border e-commerce retail from January 1, 2019, by raising the upper limit of goods subject to the preferential tax policy, according to news released on the official Ministry of Finance website.
The annual trading limit will be raised from 20,000 yuan ($2,880) to 26,000 yuan ($3,744) per person, which will be adjusted according to residents' income in the future. The limit of a single transaction will be raised to 5,000 yuan ($720).
When customs value exceeds the single transaction but is lower than the annual transaction limit, and only one commodity falls under the order, it can be imported via the cross-border e-commerce retail channel. Customs duties, import value-added tax, and consumption tax will be levied in full, with the transaction amount included in the total annual transaction.
Cross-border e-commerce retail imports are not allowed to enter the domestic market for resale.
Commodities under 63 taxation items that enjoy strong consumer demand in recent years will be included in the list, such as sparkling wine, beer and fitness equipment.
The adjusted list includes a total of 1321 tariff items.
New policies will help promote healthy development of cross-border e-commerce, introduce moderate competition and promote the transformation and upgrade of domestic industries, insiders said.