Private mail gets slapped with fat customs duty

Private mail will face higher duties under new customs regulations that take effect today, a move widely expected to hamper haiwai daigou, or representative overseas shopping services.

The General Administration of Customs will collect duties if the import duty payable on individual mail items is worth more than 50 yuan ($7.34).

Previously, the duty on personal mail to and from Hong Kong and Macao was exempt if the value did not exceed 400 yuan ($58.75), and for those to and from other areas, the exemption amount was 500 yuan ($73.44).

The change is aimed at fixing loopholes in the tariff system and cracking down on tax evasion through mail, said the announcement.

However, "the new regulations will definitely impact the haiwai daigou market, because the higher entry barrier will harm buyers' enthusiasm, leading to a slowdown in the whole market," said Chen Shousong, an analyst with the Analysys International, a business consulting firm.

Jiang Yilei, who often buys makeup and dairy products from overseas through the sellers on Taobao, Tuesday told the Global Times that she has received six packages in the past two days "due to concerns over the coming rules."

"I'm buying now to get them cheap, and I do not know how much more I will pay for them after the policies take effect," said Jiang.

A seller who preferred use her English name Sophia said Tuesday her makeup business for overseas shopping in the US can hardly go on, because "there will be little price difference with those sold in China after the new rules."

Lu Xi, who has been selling bags for half a year on Taobao, said that her income is expected to decrease by half after the new regulations take effect, adding the extra postal fees for each package will be collected 60 to 70 yuan ($8.81 to $10.28) more.

"The impact on sellers with few customers will be huge. Many small shops will shut down," said Lu.

Source: Global Times