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China Targets Online Shopping In Gray Zone

04 May 2015

China Targets Online Shopping In Gray Zone

Overseas shopping by Chinese consumers through the internet, which analysts say generated more than 100 billion yuan in sales in 2014, has been booming in a regulatory gray zone. However, those days may be over since the State Council of the People's Republic of China ordered China Customs and other government agencies to crack down on imports of counterfeit goods and products that violate intellectual property rights sold through online outlets.


Customs officers were expected to respond by stepping up inspections of parcels shipped to China from abroad. And they're not only focusing on parcel content but also making sure that all taxes and import tariffs have been paid.


The tightening effort could have a significant impact on imports of luxury goods and drugs, which an increasing number of Chinese consumers have been buying through the internet or by means of intermediates who work through websites to buy goods overseas and deliver them to Chinese customers. Some experts say these imports have hurt sales of domestically manufactured consumer products. Others say the importers can sell at bargain prices because they skirt tax regulations.


Law firms