New customs rules to regulate overseas purchasing agents

(ECNS) -- China's General Administration of Customs has taken action against the booming "Daigou" （purchasing via overseas contacts) business for luxury items, after a new rule on cross-border online commerce took effect.

The new rule issued last Saturday takes effect on Friday. It puts the regulation of enterprises and individuals in online cross-border trade under customs, an official from Zhengzhou Customs said.

The rule comes with the increase in Daigou, or parallel channels, via Taobao, WeChat or other buyer agencies and websites for overseas shopping in China.

"In the past, there was nothing applicable to daigou business," said Xiao Xiangwen, deputy marketing manager at the Henan Bonded Logistics Center.

According to the rule, items bought overseas by individuals are considered for private use, Xiao said, and if the number of goods reaches a certain level, customs will consider it trafficking.

Xiao said the new rule may increase the price of imported goods, but staffers at Tmall, which is the B2C section of Taobao, disagreed, as preferential taxation may continue.

The new rule also requires cross-border e-commerce enterprises and express firms to connect their warehouse management system with customs, as a way to prevent counterfeits.

Sun Changxin, a manager at a logistical firm in Zhengzhou, said it is easy for customs staffers to check whether the goods are imported from overseas and whether they have been recorded. He predicted that customs data will be open to the public in the future.

A growing number of Chinese are turning to daigou agents to circumvent import duties and get their hands on authentic luxury goods at lower prices.

China is the No. 1 luxury spender worldwide, making up 29 percent of total global luxury spending this year, according to a report from Bain & Co consultancy.