New Regulations Released in Hopes to Ease Controls on Imported Goods
After the government released new regulations in hopes to ease controls on certain imported good sold online have been given a one yer buffer period that will make them rethink their cross border strategies. Customs authority stated that they will continue to allow direct importations of cosmetics, medical equipment, baby products, and healthcare related food in the ten pilot cities without the needed permission or filing of special applications.
Companies are told that they have until May 11, 2017 in bringing in imported goods into bonded warehouses without having to complete customs clearance forms that were originally required from early April on cross border e-commerce activities. Several customs officials are unavailable for comments on the latest move, but several major e-commerce platforms have confirmed that they have received the notice. An e-commerce expert and the chief executive officer of the Shanghai based Wanqing Consultancy stated that the April regulation required all e-commerce companies to get certificates in order to get their goods through customs but eventually led to the fall in import volumes. As companies are facing challenges in maintaining stock levels because of the difficulty in completing the necessary custom paper works
The new regulations will now give them a one year window to rethink their procedures and plan ahead. China have started levying taxes on retail sales on cross border e-commerce platforms in early April, and placed a stricter regulation on gaining import permits for good that are being sold online. It was aimed to create a more level playing field for e-commerce platform and traditional retailers and importers. But the regulations triggered mixed reactions among buyers and sellers with many of them expecting prices of imported good being sold online to be pushed higher, but resulted in a fall in sales.