E-commerce Changes

Under the new tax policy implemented as of April 8, items
purchased from overseas via cross-border e-commerce were
no longer subject to individualized taxation but instead
became eligible for import duty, value-added tax and consumption tax. On May 25, however, the Ministry of Finance
announced that the e-commerce companies will be given a one-year buffer period to rethink their cross-border strategies, sparking another boom in the establishment of bonded warehouses in cities with pilot projects connected to cross-border e-commerce. Official data from the Ministry of Commerce show that by the end of 2014, China was home to 5,000 cross-border e-commerce platforms, representing over 200,000 companies. Experts cautioned that government supervision is necessary, but it is also important to promote the facilitation of international trade. How this emerging industry will flourish will depend on how well government oversight can marry with commercial pragmatism.