The cross-border e-commerce retail import tax policy applies to the following goods imported from other countries or regions and included in the “List of Cross-border E-commerce Retail Import Goods”:

(i) All cross-border e-commerce retail import goods that are traded through e-commerce trading platforms connected to the customs and can achieve the “three documents” comparison of transaction, payment and logistics electronic information;

(ii) Cross-border e-commerce retail import goods that are not traded through e-commerce trading platforms connected to the customs, but express delivery and postal enterprises can uniformly provide electronic information such as transaction, payment, logistics, etc., and promise to bear the corresponding legal responsibilities.

Personal items that are not cross-border e-commerce retail imports and cross-border e-commerce retail import goods that cannot provide electronic information such as transaction, payment, logistics, etc., shall be implemented in accordance with the current regulations.

Interpretation:

This article mainly clarifies the scope of application of this tax policy, which mainly includes the following points:

First, the goods must come from overseas;

Second, the goods must be included in the “List of Cross-border E-commerce Retail Import Goods” (known as the “positive list” in the industry);

Third, the transaction takes place on an e-commerce website that is connected to the customs. “Connecting to the customs” basically means that “three-in-one comparison” can be achieved;

Fourth, for transactions that take place on e-commerce platforms that are not connected to the customs (such as Amazon Japan), if express delivery and postal companies can uniformly provide “three-in-one” information and promise to bear the corresponding legal responsibilities, then this policy also applies. Document No. 56 of 2014 only applies to transactions on e-commerce platforms connected to the customs, and this time the scope is further expanded to non-connected e-commerce platforms. However, express delivery and postal companies need to bear legal responsibilities on behalf of e-commerce companies. In addition, if express delivery and postal companies only transmit the three-in-one data on behalf of the customs and promise to bear the corresponding legal responsibilities, then this policy also applies. Document No. 56 of 2014 only applies to transactions on e-commerce platforms that are connected to the customs network, but this time the scope is further expanded to include non-connected e-commerce platforms. However, express delivery and postal companies need to bear legal responsibilities on behalf of e-commerce companies. In addition, express delivery and postal companies only transmit the three documents data on behalf of the e-commerce companies, and the relevant e-commerce websites and payment companies still have to make business records on the cross-border e-commerce customs clearance service platform.

For those that are not within the above scope, the current regulations shall apply. For example, personal items that are not cross-border e-commerce retail imports shall be subject to the travel tax policy, and cross-border e-commerce retail imports that cannot provide electronic information such as transactions, payments, and logistics shall be subject to general trade.