Chinese Cross Border E-Commerce New annual Spending Limit Increase
CBEC China E-commerce news Single transaction upper limit increases from 2000Rmb to 5000 RMB, annual spending limit increases by 6000rmb to total 26 000 Rmb, adding more items to the white list and more FTZ zones, keep supporting oversea e-commerce, announced by Li Keqiang, Prime minister of China.
This new law will be effective 2019.1.1,, it is a good move for eCommerce player
New ECommerce Law
The announcement supports continuous e-Commerce Company and gives a positive message.
E-commerce has exploded in China. According to current trends, half of the online transactions worldwide will take place this year in the economic centre.
China the general Minister of China Minister of China Li-on-the-one-of-the-one-of-the-one-of-the-business-business-processors, Keqiang one-way back to the power event .
The Prime Minister has put in place new forms of industry, including electronic commerce, a new approach to prudent regulation, accommodation and management in labor relations of the government every four years.
Stimulate the Crossborder e-Commerce in China
Figures from the general customs administration key between January and October 2018, 67.2 billion yuan (about 9.7 billion US dollars), 7% year on year.
“This was boosted by growth in foreign trade, boosting consumption and creating jobs,” Li said. “We need to take a holistic approach and adopt regulations in place to fully unlock the growth potential of cross-border e-commerce
According to an article in the World Economic Forum (WEF), local technology champions such as Alibaba, Tencent and JD.com dominate a growing ecommerce ecosystem, mainly in China.
Cross-border sales are on the rise, and with a growing 1.4 billion people, international companies are eager to break into the market.
E-Commerce in China is Booming
A number of Irish companies wishing to access China are already operating online channels. Earlier this month, Irish Breeze wet wipes manufacturer signed an agreement to sell via JD.com, one of the country’s largest online retail-to-consumer platforms. In July, Larry Goodman’s ABP Food Group reached an agreement with Beijing Hopewise. sell Irish beef through its e-commerce site.
According to the WEF document, there are five main trends to watch in the e-commerce landscape in China. One is the growth of cross-border e-commerce between China and the rest of the world. In 2016, cross-border e-commerce sales in China amounted to 78.5 billion dollars (69 billion euros), a figure that should reach more than 140 billion dollars by 2021.
This is due to the growing number of Chinese traveling abroad exposed to more international brands and products.
Once back home, they use cross-border shopping to buy international products that are not available in China or are too expensive at local outlets.
In addition, and essential for Irish exporters of agri-food products, the WEF reveals that Chinese consumers are turning to cross-border e-commerce to access international brands due to consumer and food safety concerns.
The creation of “special trading zones” in e-commerce is another trend in China. Since 2015, the country has set up pilot commercial zones.
The zones provide a simplified system for cross-border online shopping, with simplified regulations for faster examination of goods and easier sharing of information on cross-border e-commerce imports and exports.
At the same time, the rise of influencers is also boosting the e-commerce market.
Another trend that benefits China’s e-commerce economy is the rise of “digitally connected experiential shopping,” a system used by JD and Alibaba, both of which open outlets across the country.
Goods included in the cross-border e-commerce retail imports list have so far enjoyed zero tariffs within a set quota and had their import VAT and consumer tax collected at 70 percent of the statutory taxable amount. Such preferential policies will be extended to another 63 tax categories of high-demand goods.
The quota of goods eligible for these preferential policies will be raised from 2,000 yuan to 5,000 yuan per transaction and from 20,000 yuan to 26,000 yuan per head per year. This quota will be further adjusted as needed in light of increases in people’s income.
At the same time, export tax rebate policies will be further improved in line with international practices to further boost exports via cross-border e-commerce.
“For a large importing and exporting nation as China, it is imperative to further open up, pursue greater diversity in the import and export mix, and vigorously attract foreign investment to promote balanced international payments and steady economic development,” Li said.
Cross-border e-commerce businesses, online platforms and payment and logistics service providers must fully discharge their responsibilities required by law, the meeting urged. Product quality and safety inspection and risk prevention and control should be strengthened for fair competition in the marketplace and better protection of the consumer rights and interests.