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Reaction to postal crackdown

08-10-2010 09:24 BJT

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The new regulation on overseas postal purchases means the state is raising its supervision in the industry.

If you Google "overseas purchase agent" on the Internet, you get over half a million hits in seconds.

Their business is simple. After they get an order from a customer, they buy the goods overseas, transport them to China and deliver them to the customer.

Usually the goods from the overseas purchase agent are 20% lower than the same products bought in China. That is why this industry is increasing 200% every year.

Overseas purchase agents are the ones affected most by the new duty adjustment.

Chen Shou Song, Analyst, Yiguan International, said, "Personal overseas purchase agents are the the most influenced because they are the ones taking advantage of the preferential policies to overseas post. The sellers keep the post value below the exemption line. It is a type of informal import."

The new duty policy greatly reduces the profit of the sellers. For example: under the old regulation, you didn't have to pay any duties, even if you mailed 10 bottles of perfume in one hit.

But, under the new policy, the seller will have to pay duty up to 500 yuan. The cost is at least 15% higher.

The new regulation also requires parcels that are sent out with a value over 1000 Yuan to be reported to Customs as goods.

Wu Haidong, Postal Service Supervision, Beijing Customs, said, "The sender needs to find an export company to process certificates required for export goods."

The current 200 billion yuan Internet shopping market, overseas purchases account for 2 billion of that amount.

Before the new regulation comes into effect, some businesses have raised retail prices, others have started to hoard goods, some say they have been forced to closed down.

But, for the formal Internet sales companies who go through Customs. they say this new regulation is good news.

A manager of Internet Sales Website, said, "Our supplier must be a first class local supplier, we can get 5-15% discounts for the latest products. What's more, our goods go through formal customs procedures and transport is shorter."

The website's manager believes that when the new regulations are introduced, its advantages will be fully realized.

Editor:Zhang Jingya |Source:

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