A new policy on cross-border e-commerce was introduced in April, 2016. In accordance with this policy, the luggage and postal item import duties won’t be levied on imported goods via cross-border e-commerce, instead, the tariff, import value-added tax and consumption tax will be levied based on imported commodity.

However, 10 pilot cities of cross-border e-commerce including Shanghai, Chongqing, Hangzhou, Ningbo, Zhengzhou, Guangzhou, Shenzhen, Tianjin, Fuzhou, and Pingtan and their customs inspection sectors have received a notice on May which suspended the new tax policy which will come into effective next year. This means that e-commerce will employ the new taxation system after one year.

The PRC General Administration of Customs (GACC) spokesman states that the one-year suspension will promote smooth transition of taxation policy and boost healthy development of cross-border e-commerce in China.