1. Regulatory Challenges Against “Suitcase Trades”
Bingwan Xiong
Renmin University of China, Law School

2. Cross-border Ecommerce Higher Quality Product Assortment
Prof. . .
Higher Quality
Product Assortment
Price Discrepancies
Delivery Speed …

3. Suitcase Retail: Major origin and destination countries
Prof. . .
Janine Nothlichs, Suitcase Retail – The Hidden Cross-Border Trade

4. Prof. . .

5. Prof. . .

6. Four Operational Models of Cross-border Ecommerce
Overseas online shopping
Direct delivery platform
Self-support B2C model
Guide and rebate shopping model
Luis Galán, What you need to know about Cross-Border ecommerce for China,
March 25, 2016

7. Prof. . .
Luis Galán, What you need to know about Cross-Border ecommerce for China, March 25, 2016

8. Prof. . .
Luis Galán, What you need to know about Cross-Border ecommerce for China, March 25, 2016

9. Prof. . .
Luis Galán, What you need to know about Cross-Border ecommerce for China, March 25, 2016

10. Regulatory Challenges
Tax Collection (personal postal parcels v. imported goods & articles)
Quality Control (China Food & Drug Administration)
Customs Clearance (delivery speed)
Compliance to Domestic Law (e..g, composition violation, package labeling) …

11. Three Episodes of Regulatory Reforms
1st Episode: , Bonded Areas (Tariff-Free Zones), B2C
1. entry but NOT custom procedure
2. sampling custom inspection of 30% of postal parcels from the Zones
3. postal Tax levied on less-than-1,000 ¥ parcels (rate, mostly 10%)
4. taxpayer: individual shoppers

12. 2nd Episode: 2016-2018, “4·8” New Deal 1. value limits
maximum of 2,000 ¥ per single parcel & of 20,000 ¥ per person per year
2. comprehensive tax rates
import duties (rate, 0%)
import value-added tax & import consumption tax (70% of statutory tax rate)
3. taxpayers
Individual shoppers
Withholding agents: e-commerce enterprises & platforms
4. tustom inspection frequency: 100%?
“4·8” New Deal has been suspended twice respectively in 2016&17

13. 3rd Episode: Cross-border E-commerce Pilot Zones
On July 13, 2018, China State Council has newly identified 22 cities as venues for comprehensive cross-border e-commerce pilot zones in an effort to boost cross-border e- commerce, promote opening-up and upgrade foreign trade
"Cross-border e-commerce has made rapid and notable achievements since the pilot zones were established and has become a new area of growth for imports and exports," Li Keqiang said, "We should facilitate domestic consumption and at the same time improve export quality in the global market."

14. Comprehensive Cross-border E-commerce Pilot Zones
3rd Episode: 2018-
Comprehensive Cross-border E-commerce Pilot Zones
1. specific implementation by local governments at provincial level
2. entry AND custom procedures
compare: Bonded Areas, entry but NOT custom procedure
stronger custom inspection
Simplification of inspection procedures: custom clearance procedure combined with Food & Drug Administration inspection procedure
Ease to comply with domestic law (e.g., minor composition violation, labeling in Chinese)
3. taxpayers: importers or shoppers?
4. tax rates
comprehensive tax (70% of statutory tax rate)?

15. BRICS countries’ efforts to promote “suitcase trade”?