China to cut import tax on some online retail purchases

1 min readUpdated Apr 4, 2016Apr 2, 20164:00 AM

China will cut import taxes on some online retail purchases starting April 8, the finance ministry said on its website on Thursday.

Goods with a value of 20,000 yuan (US$3,070) or less bought online and shipped into China would no longer be subject to customs duty, the ministry said.

Imports of goods bought online had previously been subject to customs duty, consumer tax and value-added tax, according to the ministry’s statement. The tax due will now also be capped at 70 percent of the applicable consumer tax and VAT.

Goods worth more than 20,000 yuan would be liable for the current general trade tax, the ministry said.

AdvertisementAdvertise with usMobile 320×100

What this means

China's tax reduction on online retail imports is a deliberate step to boost consumption and streamline cross-border e-commerce. By removing customs duty and capping other taxes on goods under 20,000 yuan, Beijing is making foreign products more accessible and affordable, likely increasing consumer demand for international brands. This directly pressures established retail chains and traditional import businesses, forcing them to re-evaluate pricing and sourcing strategies. While the article doesn't offer direct comparables for similar tax reforms, the impact could be as significant as a major management change or a new market entry, by fundamentally shifting consumer purchasing power. Retail executives should closely monitor sales figures for imported goods in the coming months.

Minjun Park

Reader pulse

Will China's import tax cut significantly boost cross-border e-commerce?

18,854 votes so far

Will China's import tax cut significantly boost cross-border e-commerce?

Asia's retail intelligence, in your inbox