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New round of import tariff cuts is favorable for China cross-border e-commerce

HomeCross-Border New round of import tariff cuts is favorable for China cross-border e-commerce
December 3, 2017 by Carlos Caballero Cross-Border3489 comments

In China, cross-border e-commerce keeps getting more attention. Now one more beneficial policy has been  carried out to attract more foreign companies to sell their products and to put more resources than before into this lucrative market.

Reducing import taxes on a wide range of consumer goods

The Ministry of Finance released earlier the new policy that would take effect on Dec.1.  From now on 187 products dropped tariffs from an average 17.3% to 7.7%, aiming to make imported brands more affordable for Chinese consumers, especially for the growing middle-class who are eager to look for high-quality foreign products that the domestic market still have not be satisfied yet by local brands. At the same time the new measure does also encourage Chinese consumers to spend locally instead of buying abroad, but it may also help to keep the  boost of cross-border e-commerce in China since a big part of it does happen through traditional tariff and vat taxes.

Milk powders and diapers are 0% tariffs from now on

The covered 187  consumer products include food, wine, cosmetics, personal hygiene, clothing, shoes, home appliances, and so on.

Among all of them, milk powders and diapers which are two of the most popular imported items among Chinese parents for the long time due to safety issue, now the import tariff reduces to 0%,  related foreign brands like Nestle and Danone will become even more competitive in the Chinese domestic market.

And we also can find out many iconic Spanish brands from baby products, pharmaceutical, pork & sausage and vermouth sectors can all gain an obvious advantage from selling products online to China. In 2 Open we do pay attention to Spanish brands specially while we do work with brands from any country for which we are already helping to sell in china cross-border ecommerce through tmall global, jd wordwide, kaola.com, vip.com, as well as other vertical platforms.

Some important categories are worth paying special attention to,

  • Milk powder reduced from 20% to 0%
  • Diapers from 7.5%to 0%
  • Baby strollers from 20% to 10%
  • Facial care products from 6.5% to 2%
  • Meat and sausage from 15% to 8%
  • Vermouth from 65% to 14%

More rounds of tariff reduction are expected to come

Since 2015, in only 2 years this is the forth time that China carries out the tariff reduction policy on consumer goods. It follows the China’s national strategy to boost domestic consumption and upgrade from manufacturing country to consumption one. In the other hand, from the external point of view, it also helps to shorten the global trade gap to remove the trade barrier.

So, we could expect that if China continues the strategy, in the near future more favorable policies will be launched  to meet consumption upgrade and keep accelerating the development of cross-border e-commerce in China.

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