http://gain.fas.usda.gov/Recent%20GAIN%20Publications/China%20ann...

http://gain.fas.usda.gov/Recent GAI...TO_China - Peoples Republic of_10-27-2015.pdf

Ok guys don’t get worked up over what the media tells you about regulation. Have a read of the announced proposed draft rules on cross-border e-commerce and make a judgement for yourselves. I actually think this is a great thing.

Note: The scope of the application only applies to “imported via bonded internet shopping”. The process for this is as follows; bulk goods -> warehouse in one of China’s free trade zones > repackaged and sent to individual customers.

"The products delivered into China via international courier or mail are not included in the scope of these Detailed Rules”. Therefore students that have been clearing goods from Australian shelves and then shipping it back to China for family and friends will not be affected. Nor will it affect tourists who are bringing it back in their luggages.

This will only effect (B2BC) larger e-commerce resellers such as Mia.com that are utilising the bonded warehouse import method. Larger resellers now need to follow more stringent requirements to ensure that the goods they are selling is not fake. This is a benefit because it eliminates fake products notoriously known for circulating in the free trade zone and thus ensuring the credibility of existing genuine products. When this kicks in, it means higher sales for existing genuine produces.

Note: Chinese labels are required to be printed on infant formulas and not attached (I take back the previous article I posted that shows this is not required). Again this is hardly a threat because Bellamy and A2 already has Chinese printed cans (Check out their Tmall store). If this proposed rule does kick in, then they will only need to print more Chinese labelled cans for the resellers via their distributors. Other products such as vitamins do not need to have Chinese labelling, however they require Chinese instructions on their e-commerce website where the product is purchased.

Another great thing about this new change is that infant formula produced by non CNCA approved manufacturers can no longer be imported into the free trade zone. Hence eliminating other brands and creating more market share for approved producers. Synlait and BGA are already approved by CNCA.

So overall, new proposed e-commerce regulatory changes is hardly a threat to honest operators nor to the revenue of genuine produces. While the rule may seem more stringent at first glance, it is there to protect against unscrupulous operators and will in the long-term benefit honest e-commerce operators and genuine Australian produces.

The demand for quality Australian produces is here to stay. IMO