Good news from cross-border e-commerce trading for fine wine in China. A first lot of premium fine wines imported under this trading arrangement scheme has reached Xiamen, in the south-eastern province of Fujian. The cross-border e-commerce is a pilot program of the Chinese Government to allow Chinese consumers to buy online directly from overseas merchants.
International brands’ merchandise (including wine) is shipped to bonded warehouses, where is not subject to normal import duties or rules for quarantine and quality checks. Under normal trading, the wines imported by Xiamen would have been subject to 46.9% of taxes, instead of the 21% they paid.
China introduced cross-border e-commerce trading a few years ago but recently has almost double the number of cities in the pilot zones, bringing it to 105, as it seeks to reshape an export sector ravaged by the coronavirus outbreak and in another effort to boost imports and promote consumption. Among the cities, together with Xiamen, there are Beijing, Tianjin, Shanghai, Dalian, Nanjing, Hangzhou, Ningbo, Xiamen, Qingdao, Wuhan, Changsha, Guangzhou, Shenzhen, Chongqing, Chengdu, Guiyang, Kunming and Xi’an.
Recently both the individual per order limit and the annual spend limit have been increased: the first to RMB 5000 (US$700) and the latter to RMB 26,000 (US$3650).