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New tax rules on overseas buying to benefit Chinese retailers: Fitch

(Xinhua) Updated: 2016-04-11 08:16

New tax rules on overseas buying to benefit Chinese retailers: Fitch

A shop assistant settles articles at a purchase center of imported goods in Shijiazhuang, capital of North China's Hebei province, April 8, 2016.[Photo/Xinhua]

BEIJING - China's tighter restrictions on overseas purchases may narrow the price differential of luxury goods between China and the rest of the world, encouraging consumers to spend more domestically and benefit local retailers, says Fitch Ratings in a latest report.

Starting on Friday, overseas retail goods bought online would no longer be treated as personal postal articles, which enjoy tax rate lower than that on other imported goods. Instead, those overseas purchases will be charged in the same way as any other imported goods, according to the new rules.

Fitch says domestic department store operators and luxury goods retailers are among the key beneficiaries of the restrictions. The measures may create a more level playing field for domestic retailers if enforcement is strict and not short-lived, it noted.

Cross-border e-commerce has been booming in China. The Ministry of Commerce predicted the volume of cross-border e-commerce in 2016 will reach 6.5 trillion yuan ($1 trillion) and will soon account for 20 percent of China's foreign trade.

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