The Ministry of Commerce of the Government of China (MOF) announced today that the new tax policies for cross border eCommerce will be postponed further, till the end of year 2017.

The policy was referring to the new policy on cross border eCommerce introduced in April, 2016. New rules meant tighter customs treatment and higher tax rates on overseas goods sold on Chinese eCommerce sites, which previously allowed shoppers to buy imported goods via cross-border e-commerce zones on a special parcel tax rate.

However, 10 cross border eCommerce pilot cities and their customs inspection sectors have received a notice on May which suspended the new tax policy which will come into effective next May. Now MOF has extended this transition period to the end of 2017.

What are the 10 pilot cities? Shanghai, Chongqing, Hangzhou, Ningbo, Zhengzhou, Guangzhou, Shenzhen, Tianjin, Fuzhou and Pingtan

Details of the document?

1. Bonded-zone model

In the 10 cross border eCommerce pilot cities “customs clearance certificate” would not be needed during the transition period.

The cross border eCommerce “Positive List” required special registration, special licenses or filings under PRC law for first-time imported cosmetics, baby formula, medical equipment and special food products (including healthcare food products).

But, now during the transition period, registration mentioned above will not be needed.

2. Direct shipping model

The Positive List required special registration, special licenses or filings under PRC law forfirst-time imported cosmetics, baby formula, medical equipment and special food products (including healthcare food products).

Same with bonded-zone model, during the transition period, those registrations will not be needed.

3. Transition period

The transition period will end on Dec 31th, 2017 (including Dec 31th, 2017).

More about Cross Border eCommerce New Policy:

Good News for China Cross Border eCommerce! Customs Clearance Certificate Delayed for 1 Year

Did You Know: Chinese ID Needed When Shopping on Cross Border eCommerce in China

RIP: These Cross Border eCommerce in China Failed in 2016