April 8, 2019 – Customs tariff Commission of the State Council released a notice about reducing the import tax on postal articles(进境物品进口税/行邮税). The taxes of Items 1 and Items 2 have been reduced from 15% to 13% and from 25% to 20% respectively. The adjustments went into effect on April 9th.
The Food, Health Food / Dietary Supplement and beverage fall under Items 1. The tax reduction only applies to personal items entering China from outside China, including items brought by entrants and items delivered into China through postal and express etc.
The tax reduction does’t influence the composite tax rate for Cross-border e-commerce which is formed by Consumption tax and VAT.
Consumption tax = (Price after tax/(1-consumptiont tax rate))*Consumption tax rate
Composite tax rate = (Tariff + Consumption tax + VAT) * 70%
Now the Chinese tariff for CBEC is 0%, for Health Food/Diatery Supplements the Consumption tax is 0%. In this case, regarding supplements, the composite tax rate is 9.1% with 13% VAT. All CBEC platform registered in China needs to follow this tax rate which is even lower than import tax on postal articles. (Source: HPA-China)