China Updated the Positive List: 92 More Categories are Welcomed to be Imported into China

On the first day of 2020, Cross Border E-Commerce (hereafter CBEC) has welcomed benefits due to the implementation of a new policy. For the purpose of promoting the sound development of retail imports in CBEC, the List of CBEC Retail Imports (2019 version) (also known as “Positive List”) came into force on January 1, 2020 in China. Compared with the preceding version (2018 version), 92 categories of imported goods, including some commodities that are in strong consumer demand in recent years, such as frozen seafood, alcohol and household appliances have been added upon the implementation of the list (2019 version).

Hot-selling products are added on the list and are proceeded in a most efficient way

Hot-selling products in recent years, such as Frozen seafood, gin, vodka, water-heaters, color TVs and other imported products are among the additional 92 categories of commodities in the List of CBEC Retail Imports (2019 version). The update of the Positive List of CBEC imports means that the above new products will not be required for the first import license, which greatly speeds up customs clearance process (It only takes a few minutes to go through customs clearance with the new policy), meaning that the products will enter into the Chinese market in a more speedy and efficient way.

Pharmaceutical CBEC breaks the ice

There have also been new breakthroughs in pharmaceutical CBEC. Previously, pharmaceutical products were severely restricted to CBEC. Drugs, medical devices, and special foods (including health foods, special medical formula foods, etc.) must be subject to import approval in accordance with relevant national laws and regulations.

However, consumer demand for overseas pharmaceutical products has been very strong in recent years. According to data of 2019 from Amazon Global Store (AGS) in Amazon China, the sales of the category “Personal Health” ranked second among all categories on its platform in the past year, and 2 out of 10 fastest-growing items on its platform are medicine and health products.

Therefore, before Jan 2020, the policy of Cross-Border Pharmaceutical E-commerce Pilot was officially approved in Beijing by the State Drug Administration and it was agreed to carry out the pilot project in Beijing. This is also the first time that China's CBEC policy has broken the ice in terms of pharmaceutical products.

In fact, in addition to the increase in the categories of imported goods, the recent CBEC for pharmaceuticals has also ushered in an ice-breaking journey in Beijing. Back in December 2018, Beijing released the Implementation Plan for China (Beijing) CBEC Comprehensive Pilot Zone. The Implementation Plan clearly identified 10 key tasks for the construction of the Beijing Comprehensive Pilot Zone, the most notable of which were exploring the use of CBEC models to import pharmaceutical products.

One year later, this key task achieved a breakthrough nationwide. On December 30, 2019, Beijing's Cross-Border Pharmaceutical E-commerce pilot policy was officially approved by the State Drug Administration and agreed to conduct pilot work in Beijing. This is the breakthrough movement that China's CBEC policy involves pharmaceutical products. At the same time, it was agreed that Ali Health Technology (China) Co., Ltd., as a Beijing CBEC sales pharmaceutical product pilot enterprise, would launch CBEC import pharmaceutical products business in Tianzhu Comprehensive Bonded Zone, meaning that Chinese people are able to purchase the imported pharmaceutical products not limited to physical stores.

1049 overseas brands have been added on the platform of Tmall.HK

On December 31, 2019, in order to echo with the implementation of the Positive List (2019 Version), Tmall.HK released a list of hot brands in 2020. The first batch of 1049 brands entered the fast-track channel, covering nine categories including home furnishing, pets, clothing and apparel, personal care, Beauty, food, mother and baby, digital appliances and medicine and health care. At the same time, Tmall has upgraded the scale and service capabilities of Tmall Partners (TP) to help more overseas premium brands accelerate their entry into the Chinese market through CBEC platforms. It plans to double the number of TPs by 2020, and the total turnover of service stores operated by service providers will increase by over 40%.

According to Tmall.HK, the list of hot-selling brands was specially established based on consumer demand and market demand, and the purpose is to establish businesses with good brands to jointly provide consumers with high-quality goods and services. The 1049 brands on the list will enjoy fast entry through

According to the latest customs statistics, from January to November 2019, CBEC retail import sales reached $ 12.15 Billion, an increase of 16.3% YoY, implying that import consumption has become the new driving force for China's domestic demand growth. As the most important CBEC platform in the country, Tmall.HK has not only met the growing demand for new imports from Chinese people but has also become a must for overseas brands who are eager to enter into Chinese market.

As of now, more than 22,000 overseas brands in 78 countries and regions around the world have onboard in Tmall.HK, covering more than 4,300 categories, of which more than 80% of brands have entered China for the first time. That is to say, in the past 5 years, an average of 10 overseas brands enter the Chinese market for the first time through Tmall.HK per day.

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