Cross-Border e-Commerce Background

The growth of online shopping in Mainland China increased sharply with the sales volume rocketing to RMB 18.5 billion in 2013 from the RMB 120 million in 2008, and is forecast by the Ministry of Commerce to exceed RMB 30 billion in 2015, more than 10% of the total retail sales volume. Whilst the rapid growth of cross-border online purchase for overseas products has recently benefited the Chinese with much more convenience and a higher quality of life, the derivation of illegal cross-border agent purchase and infiltration of shoddy knock-offs became simultaneously became a serious problem. Thus, a transparent, convenient and legitimate online shopping channel is required. In May 2012, the National Development and Reform Commission announced to initiate the national e-commerce project by setting up pilot cities, headed by the General Administration of Customs (GAC) together with other relevant bureaus including the Ministry of Finance, the Ministry of Commerce, the People's Bank of China, the State Administration of Taxation, the State Administration for Industry & Commerce and the General Administration of Quality Supervision, Inspection and Quarantine.

Pilot Cities of Cross-Border e-Commerce Services

Starting from 1 Oct 2013, six cities, including Shanghai, Chongqing, Hangzhou, Ningbo, Zhengzhou and Guangzhou, were designated to initiate the new cross-border e-commerce services.

Each pilot city set up their own cross-border e-commerce service platform, integrated with an electronic border monitoring system as well as a platform for cross-border e-commerce enterprises, for the domestic consumer to purchase overseas products through a legitimate channel with import tax charged, so as to strike against the grey channel of illegal cross-border purchasing agency activities.

Main Tasks of the Pilot Cities

The pilot cities focus on solving the current problems in handling cross-border e-commerce by express or direct mail, such as the complicated formalities of custom clearance, foreign exchange and tax rebate. With the support from the GAC, the pilot cities established advanced cross-border e-commerce services systems, including online custom clearances and tax rebates to facilitate the procedures and provide high level of services.