China's E-commerce Law takes effect from Jan 1

In addition to e-commerce platforms like JD.com and Taobao, social e-commerce platforms like WeChat and short video app Douyin will also come under the ambit of the new law, as it specifies e-commerce operators to be individuals, companies and organisations that carry out e-commerce, including e-commerce platform operators, merchants operating on the e-commerce platform, and others selling goods via self-constructed websites.

Further, all e-commerce platforms would need to obtain business licenses from the State Administration for Industry and Commerce. Additionally, e-commerce platforms would have to share joint responsibility with individual merchants in case of fake or low-quality goods being sold on their websites.

The new law creates a level playing field between small and large players, as it restricts imposition of unreasonable fees or conditions on the merchants.

Also, beginning January 1, 2019, for retail imports through cross-border e-commerce platforms, there will be no requirements in licensing, registration or record-filing for first-time imports. Instead, these goods will receive more relaxed regulation as imports for personal use. The implementation of the current policy in this regard would be extended from the 15 cities such as Hangzhou to another 22 cities such as Beijing, which have just set up comprehensive cross-border e-commerce pilot zones.

So far, cross-border e-commerce retail imports enjoyed zero tariffs within a set limit, and had their import, VAT and consumer tax collected at 70 per cent of the taxable amount. Now, this policy would be extended to another 63 tax categories of high-demand goods. (RKS)

ALCHEMPro News Desk – India