Reports have circulated of a Chinese Government “positive list” released on April 7 identifying products that can be imported into China through online shopping websites and free-trade zones.
It is believed milk powders and UHT milk products were not on the list for cross-border imports but infant formula was.
The release of the “positive list” comes as China imposed an 11.9 per cent tax on a range of products imported through e-commerce businesses as part of changes to importation measures announced on March 24.
The tax will hit several Australian foods and beverages.
The Australian Government was seeking clarification from Chinese officials on the list of products subject to the cross border e-commerce tax rate.
The March 24 trade changes relate primarily to sales through bonded warehouses in 13 cities in China.
The Government understands much of the detail on how the changes affected sales of popular products such as vitamin supplements and milk powders would become clearer as the implementation rolls out.
The new rules would not affect conventional trade secured through standard regulatory approvals.
MG said some online shopping sites had removed the cooperative’s Devondale consumer milk powder and UHT milk in response to news of a “positive list”.
“We also understand that further clarification is expected from Chinese authorities around the application and content of the positive list in the coming weeks,” MG said in a statement to the Australian Securities Exchange today.
“MG has been aware of this Chinese regulatory development for some time, and is well progressed in preparing for any changes which includes using the more traditional offline distribution arrangements as well as domestic online arrangements.
“MG’s traditional import channels are already well developed, and currently distribute a significant volume of product.
“MG assures Chinese consumers that Devondale’s wide range of products remain available through traditional channels.”
The move by the Chinese Government to impose the import duty on some products ordered through online shopping websites is designed to protect its domestic retailers.
