June 1st China regulations update

Hey Guys,

Wanted to clear up some more points about the regulation coming up on June 1st:

As you all know further regulations have been delayed however the clearer picture has been made:

There is some urgent points to note:
As we all have discovered the tax system is optional for some ports until next year. This maybe changed again leading to June 1st. So this is the complete summary made clearer to us today via Skype conference:

1. There may be a permanent tax on all formulas sent to china of around 6.50 per can and that is all. Now you don't have to worry because consumers in China for example pay between 30-100 dollars per can of A2 baby formula depending on availability of stock. Also bellamys went from 18 dollars a can to 28 dollars and demand did not stop. On top of that A2 increased their price by 5 percent and demand only got bigger. The reason for this was people were sending formula in smaller parcels to avoid tax now this has been made consistent across all forms of shipping. However this is great news because it becomes a level playing field. The selling continues . Some courier companies stopped sending packages to make sure the tax amount was correct and the customers parcel was not held back. As bad reviews about these courier companies will hurt the business. So if the tax is applied the consumer does not pay the courier company does. It is up to the courier company to make sure the correct item is declared. The base tax rate is then passed on to the customer. Similar to GST.

Note: All courier company reopen ports to formula 1st of June. Tax or no tax sales keep coming so no need to worry

2. Baby formula cans sent by parcel are two or three cans per box which were originally 3-6 cans.

Now these are the two major updates from our Skype meeting with Beijing. However everything else stays the same. China wants their tax eventually and thats all.

This is great for us major distributors in the long run. The buying and selling of goods into china won't stop but the picture was just made clearer today.