(CBN Global) March 23 -- In a major shift in China's policy towards cross-border e-commerce, from April the maximum tax-free value of imported consumer goods will be lowered to CNY2,000 (USD308) from CNY5,000.
By reducing the tax threshold for individual citizens, the government aims to encourage Chinese consumers to shop from duty-free stores or online shopping platforms within China, instead of buying products from overseas websites. CNY8,000 of tax-free purchases are allowed at duty-free shops in airports.
China's new policy will seriously affect cross-border e-commerce businesses, as more than 30 percent of products currently on sale on online shops are priced above CNY2,000, CBN has been informed by several sources.
In the past, such products enjoyed special tax treatment. However, soon not only will they be subject to greater taxes, but they may even be removed from the shelves.
Business-to-customer imports totaled USD2.23 billion between January and November last year, and a total of 95,988,900 shipments were checked and released, giving rise to high regulatory costs, according to CBN analysts.