[The new taxation for retail importing of transnational e-business promulgated by three ministries is to be executed on April 8] To build a market environment with fair competition, promote healthy development of retail importing of transnational e-business, with approval from the State Department, now the related affairs about import taxes policies for transnational e-business retail (business to consumers, i.e. B2C) are hereby notified as follows (Ministry of Finance)

Notification concerning policies of import taxes for transnational e-business retail 

CGS〔2016〕No.18 

To all provinces, municipalities, directly-controlled municipalities, financial department (bureau) of cities with independent plans,, State Administration of Taxation, Xinjing finance bureau of production and construction corps, Guangdong branch office of General Administration of Customs, and all directly-controlled customs: 

To build a market environment with fair competition, promote healthy development of retail importing of transnational e-business, with approval from the State Department, now the related affairs about import taxes for transnational e-business retail  (business to consumers, i.e. B2C) are hereby notified as follows: 

I. Customs duties, import value-added tax and consumption tax are levied on the transnational e-business retail imports, with individuals purchasing transnational e-business retail imports being taxpayers, actual transaction price (including goods retail price, freight and premium) being dutiable price, and e-business enterprises, e-business transaction platform or logistics enterprises can be obligors for collection and payment on behalf. 

II. The tax policy for transnational e-business retail importing is applicable to following commodities imported from other countries or regions and within the scope of List for Transnational E-business Retail Imports: 

(i) All transnational e-business retail imports traded through e-business transaction platform connected with network, able to realize comparison of "three sheets" of transaction, payment and logistics electronic information; 

(ii) The entering transnational e-business retail imports not traded through e-business transaction platform connected to customs, yet with express and post enterprises able to provide uniform electronic information such as transaction, payment and logistics, and committed to assuming corresponding legal responsibilities

Personal belongings not belonging transnational e-business retail import and transnational e-business retail imports unable to provide electronic information such as transaction, payment, logistics, etc. shall be subject to existing provisions. 

III. The single transaction threshold for transnational e-business retail imports is RMB 2,000 Yuan. Individual annual transaction threshold is RMB 20,000 Yuan. The duty rate for the transnational e-business retail imports imported below threshold is temporarily set as 0%; the import value added tax, consumption tax with exemption entitlement cancelled shall be levied by 70% of legal tax amount payable. Tax should be levied in full according to general trade mode on transaction exceeding threshold for single transaction, single transaction exceeding individuals' annual threshold after accumulation and single indivisible commodity with dutiable price exceeding threshold of 2,000 Yuan. 

IV. For the transnational e-business retail imports returned within 30 days since customs release, tax refund can be claimed for, and individual's total annual transaction amount will be adjusted accordingly. 

V. The identity information of purchaser (subscriber) of transnational e-business retail imports should be authenticated; if not authenticated, the identity information of purchaser (subscriber) should be consistent with that of payer. 

VII. The List for Transnational E-business Retail Imports will be promulgated by related departments of treasury department and commerce separately. 

VII. This notification will be executed since April 8, 2016. 

It is hereby announced. 

Ministry of Finance, General Administration of Customs 

and State Administration of Taxation

March 24, 2016