Higher taxes on cross-border e-commerce products going to mainland

A Guangdong-Macau conference on cross-border e-commerce took place last week at the World Trade Centre, where businessmen from both regions shared their own experiences developing popular online shopping platforms.
The conference, now in its third edition, was co-organized by the Guangdong Cross-Border E-Commerce Association (GDCBEA) and the E-Commerce Association of Macau, as a result of the cooperation between DSE and the Department of Commerce of Guangdong Province.
Tai Kin Ip, the director of the Macau Economic Service (DSE), believes the conference will stimulate the flow of trade between both regions and create new business opportunities for participants.
“The mainland has a huge number of customers who demand overseas products of good quality. Macau possesses an international business network, especially with Portuguese- speaking countries,” he noted.
Scott Ma, president of the E-commerce Association of Macau, said that Macau is a communication platform between the mainland and Portuguese-speaking countries, and that many mainland tourists also appreciate Macau’s local products.
On April 8, the mainland implemented new tax rates for cross-border e-commerce goods. Before the adjustment, the tax rates applying to personal postal articles were between 10 and 50 percent. They now range between 15 and 60 percent.
According to Wu Mu Zhen, deputy secretary-general of GDCBEA, the change will benefit sectors such as cosmetics and wines, but may result in increased prices for food and clothing items.
The new regulations have also doubled the spending limit for single purchases. Previously, a single purchase could amount to a maximum of RMB1,000, a limit that has since been increased to RMB2,000. However, an individual can still only buy RMB20,000 worth of goods within a year. Staff reporter