Ningbo Customs,
During the recent online shopping festival, I plan to purchase health supplements and cosmetics from cross-border e-commerce platforms such as JD.com and Tmall. However, I am unclear about the tax policies applicable to such purchases. Could you please provide a detailed explanation?
— Mr. Liu, Consumer
Mr. Liu,
Pursuant to the Circular on Tax Policies for Cross-Border E-Commerce Retail Imports (Cai Guan Shui [2016] No. 18) and the Circular on Improving Tax Policies for Cross-Border E-Commerce Retail Imports (Cai Guan Shui [2018] No. 49), issued by the Ministry of Finance, the General Administration of Customs, and the State Taxation Administration, the collection of taxes on retail imported goods under cross-border e-commerce is subject to highly detailed regulations, as follows:
■ Purchase Limits
The single transaction limit for retail imports via cross-border e-commerce is CNY 5,000, and the individual annual transaction limit is CNY 26,000.
■ Tax Policy
For cross-border e-commerce retail imports that fall within the value limits, the tariff rate is provisionally set at 0%. Value-Added Tax (VAT) and consumption tax at the import stage are levied at 70% of the legally prescribed tax amount. If the taxable value of a single transaction exceeds the CNY 5,000 limit but is below the CNY 26,000 annual transaction limit, and the order contains only one item, it may still be imported via the cross-border e-commerce retail channel. In such cases, customs duties, import VAT, and consumption tax will be fully levied at the goods' corresponding rates. This transaction value will count towards the annual transaction total. However, if the cumulative annual transaction total exceeds the annual transaction limit, such imports shall be managed under general trade regulations.
For example, Ms. A bought a watch on a cross-border platform. Its dutiable value was CNY 4,000. Based on its classification, the customs duty rate is 10% and the VAT rate is 13%. As the dutiable value does not exceed the single transaction limit, Ms. A is exempt from customs duty and only needs to pay VAT of CNY 4,000 × 13% × 0.7 = CNY 364.
■ Special Goods
Cosmetics and skincare products are key imports for consumers via cross-border channels. A special attention is issued: High-end cosmetics and skincare products purchased on cross-border platforms with a dutiable value exceeding CNY 10/ml (g) or CNY 15/piece (sheet) will be subject to an additional 15% consumption tax, beyond the standard VAT.
For example: Ms. B bought a 20-gram bottle of eye cream from a certain brand on a cross-border platform for CNY 425. As its taxable unit price of CNY 21.25 per gram exceeds CNY 10 per gram, an additional consumption tax is levied. Based on its classification, the product is subject to a 5% customs duty, 13% VAT, and 15% consumption tax. Since the dutiable value does not exceed the single transaction limit, Ms. B is exempt from customs duty. The consumption tax is calculated using the formula for goods: CNY 425/(1-15%) × 15% = CNY 75. Applying a 70% rate, the payable consumption tax is CNY 75 × 0.7 = CNY 52.5. The VAT is initially calculated based on the full consumption tax amount, and then calculated at 70%, resulting in a payable VAT of (CNY 425 + CNY 75) × 13% × 0.7 = CNY 45.5.
■ Additional Important Notes
In addition, in accordance with relevant regulations, for certain goods closely related to consumers' daily lives, the following limits apply to bonded e-commerce imports: Sugar products (HS codes 17011400, 17019100, 17019910, 17019990, 17029011, 17029012, 17029090, 21069061, 21069062): A total of 2 kilograms per person per year. These products mainly include cane sugar, granulated sugar, beet sugar, and their aqueous solutions or solid mixtures with a sucrose content exceeding 50%; Rice products (HS codes 10061089, 10062020, 10063020, 10063080): A total of 20 kilograms per person per year. These products include, but are not limited to, long-grain milled rice and brown rice.
(By Dong Liya, Level I Supervisor, Tariff Division, Ningbo Customs)
People's Daily Overseas Edition, November 15, 2025 (Tariff Division)
Disclaimer：The above content is translated from Chinese version of People's Daily Overseas Edition. The People's Daily Overseas Edition version shall prevail.
