PYMNTS-MonitorEdge-May-2024

China Cuts X-Border eCommerce Import Parcel Tax

In China, the nation’s General Administration of Customs said it will cancel the parcel tax that has historically applied to cross-border eCommerce. The cancellation of that tax takes its place as an effort to level the playing field, competitively, between online platforms and their brick-and-mortar import brethren.

China Briefing reported that an “adjusted parcel tax scheme” is now applicable only to goods that are being brought back into China and are in personal use by Chinese residents with a value above RMB 5,000 ($771). Alternatively, it can apply to non-residents’ use of personal goods with a value above RMB 2,000 ($309). Anything less than those amounts remains tax-exempt.

In addition, noted the site, the tax brackets have been reduced from four tiers to three and now range from 15 to 60 percent.

In the past, the import of goods that were sold online and that crossed borders were treated as personal articles and were taxed at relatively lower rates — at about 10 percent for goods below a RMB 1,000 ($154) level. But now, according to the website, those lower-priced goods were classified for taxes along the same level as other imported goods, with VAT and consumption taxes added. All in all, the site noted, the all-in tax rate for exporters and retailers is slated to go up and will be above 10 percent.

PYMNTS-MonitorEdge-May-2024