By Star Chang, posted Sep 3, 2010 at 1:25 AM, 2,759 views,

China Customs to impose import tax on personal postal items

Sending private postal to China will face import tax under new customs regulations that took effect starting on September 1. The General Administration of Customs from China will collect an import tax if the import duty payable on individual mail items is worth more than $50 RMB (US$7.34). The change is aimed at fixing loopholes in the tariff system and cracking down on tax evasion through mail. The move is widely expected to hamper overseas online shopping services.

Previously, the duty on personal postal items to China from Hong Kong and Macau was exempted if the value did not exceed $400 RMB (US$58.75), and for other countries and regions, the exemption amount was $500 RMB (US$73.44). The new regulations will impact the overseas online shopping services, because the higher entry barrier will harm Chinese buyers’ enthusiasm, leading to a slowdown in the whole online purchasing market. Many small online shops in China will shut down, because the price will only be a little different with items sold in China after the new rules.

From time to time, a lot of foreigners will send postal items from overseas to China. But it certainly seems China doesn’t want people to import personal items anymore. China is throwing up barriers to entry in the form of taxes and other obstacles, to nearly all imported goods. The WTO deal didn’t helps, it seems more and more like a hollow agreement.

Source: Xinhua, GlobalTimes