China: Using the Crossborder Ecommerce Channel to Increase US Food Imports to China
Cross-border e-commerce (CBEC) provides U.S. exporters with a growing retail channel to reach Chinese consumers. Products sold through CBEC enjoy no import tariffs and reduced value added taxes compared to traditionally imported products. Due to preferential tax and import policies, imports have grown from just $800 million to an estimated $30 billion in only six years. To utilize this relatively new retail channel, U.S. exporters should first confirm that their products are eligible to be sold through CBEC and consider working with a Chinese e-commerce company who specializes in selling to consumers through CBEC. This report describes CBEC, answers frequently asked questions, and provides recommendations for U.S. food and agricultural exporters interested in selling products directly to consumers through CBEC.