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By Mark Schaub and Chen Bing King & Wood Mallesons’ Corporate & Securities group.

schaub_m1Many international companies that have seen sales of product rocket via Chinese ecommerce celebrated the March 17 Announcement by MOFCOM (i.e. a press release regarding the supervision of products imported through cross-border ecommerce (“CBEC Products”) during and after the extended grace period) as a signal that the good times will continue to roll. As stated in our previous article[1] we had concerns that many were reading too much into the March 17 Announcement and in particular the Chinese authorities would continue to have concerns about ensuring consumer safety.

Recently, Xiaoming Yuan, the Deputy Director-General of the Financial Department of the Ministry of Commerce (“MOFCOM”) in an interview with Oriental Outlook provided useful background about the context and implications of the March 17 Announcement.
Continue Reading China Cross-border Ecomm: Intentions Become Clearer

By Mark Schaub, Chen Bing and Martyn Huckerby  King & Wood Mallesons’ Corporate & Securities group

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International health food companies and infant formula food suppliers rejoiced on March 17, 2017, when the China Ministry of Commerce (“MOFCOM”) confirmed that the current supervision model will likely be adjusted for cross border e-commerce retail imports (“CBEC”). The announcement advised that the new model, which will take effect from January 1, 2018, will apply to 15 pilot zones.

The mood was markedly different back in April 2016, when several PRC authorities officially issued new policies regulating cross border e-commerce. The most concerning aspect of the April 2016 measures was that a range of products, including health food, infant formula, cosmetics and medical devices, would need to be registered or filed with the PRC authorities. These  polices caused panic in the market and resulted in a sharp drop (almost one third) of CBEC business revenue. A later notice in May 2016 granted a grace period for the implementation of registration and filing requirements until May 2017, which was extended by MOFCOM in November until the end of 2017.
Continue Reading Respite or False Dawn: MOFCOM Hints at Softening of Tough PRC E-commerce Policies