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China E-commence Law Implementation

A huge impact on Daigou

· Cross-border,Import,Formal clearance

China formally introduced its e-commerce law on August 31, 2018, and it will take effect on January 1, 2019. The introduction of this e-commerce law, in fact, will largely affect the survival of some people, the direct impact of the first group is the overseas Daigou (individual buying agents). According to the e-commerce law, most Daigou are required to register with the industrial and commercial authorities and fulfill their tax obligations according to law. The industry of individual Daigou will face transformation. The reason why Daigou (or wechat business) has reached a blowout increase in the past two years is that the cost of Daigou is relatively low, which has given rise to the demand. When no e-commerce law was issued, the relevant provisions on the tax risks of cross-border Daigou were not clear. However, after the introduction of the e-commerce law, everything becomes clear. At present, the profit of Daigou mainly lies in the exemption from tax and consumption tax. Now the legislation has been clear, and there is no technical obstacle in the implementation. Therefore, in the long run, the space for individuals to live is becoming smaller and smaller.

Cross-border e-commence, import agent, formal clearance