Australia Post Starts Delivering Tariff-Free Baby Milk Powder, Diapers to China

Australia Post Starts Delivering Tariff-Free Baby Milk Powder, Diapers to China

Liao Shumin

Date: Fri, 05/25/2018 - 17:30 / source:Yicai
Australia Post Starts Delivering Tariff-Free Baby Milk Powder, Diapers to China
Australia Post Starts Delivering Tariff-Free Baby Milk Powder, Diapers to China

(Yicai Global) May 25 -- The Australian national post office has opened a concept store oriented to Chinese overseas shoppers, delivering milk powder, baby care products, skin care items, and vitamins directly to China without tariffs.

Australian Postal Corp.'s store is based in Chatswood, a popular shopping mall among Chinese people in the suburbs of Sydney, news site Sohu reported, adding that these products are cheaper when directly sent from overseas as they benefit from China's import tax reform.

China reduced the tariff for special medical formula milk powder products to zero from 20 percent last December, while that of baby diapers was cut to zero from 7.5 percent.

Emerging cross-border e-commerce platforms also enjoy zero-tariff policies, but they still have to pay value-added taxes on imports, which makes the products more expensive. The market for special medical milk powder formula was worth around CNY3.3 billion in 2016, making up less than 3 percent of the entire baby milk powder market.

Editors: Emmi Laine, William Clegg

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Keywords: Australia Post, China, Baby Milk Powder, Baby Care Products, Imports, TARIFFS