Understanding Tax and Customs Policies for Retail Import Cross-Border E-Commerce in China

As a new industry, cross-border e-commerce continues to boom and make significant contributions to economic development. China is an important participant and benefits from the fast development of the industry, especially in retail import of crossborder e-commerce. The tax and customs policies associated with this cross-border e-commerce have been adjusted dynamically with the development of the industry, especially in recent years. This paper examines the evolution and possible problems of tax and customs policies for retail import cross-border e-commerce in China. Section one provides an overview of development of cross-border e-commerce in China; section two gives a detailed description of the evolution of the relevant tax and customs policies; section three explains why personal postal articles and the associated tax and customs regulations are related to retail import cross-border e-commerce and how tax issues and risks arise there; and section four provides a conclusion and outlook.