A2 Milk has welcomed an announcement by the Chinese Government that it would define the major cross border e-commerce players under a new policy framework, which a2 said would improve transparency and protect the rights and safety of consumers.
On Friday, China’s Ministry of Finance said its new policy framework would define the major participants within the cross border e-commerce market and set out the responsibilities for those participants.
The changes would help to promote the healthy development of the cross border e-commerce retail import industry, and create a fair and competitive market environment.
A2 Milk (A2M) said it believes any large corporate enterprise will be considered a participant in the cross border e-commerce channel under the new law and policy framework.
“The company welcomes this further guidance, which continues to demonstrate the Chinese Government’s support of this channel, with a strong focus on improving channel transparency and protecting the rights and safety of consumers,” the company said in a statement to the market this morning.
The changes will mean that imported may not be re-sold in the domestic market. A2 Milk said it will mean that English-language-labelled products that comply with the regulations of the country of origin will continue to be sold but consumers will need to provide access to an electronic Chinese translation of the packaging label; and notification that the products comply with the regulations of the country of origin.
It will also require a2 Milk to have adequate product traceability systems, return and exchange services, product recall systems, product quality and safety risk prevention and control mechanisms, and consumer dispute handling processes.
“The company and its major trading partners selling English-label products to Chinese consumers are confident all requirements will be met on or before 31 March 2019,” a2 Milk said.
The new laws will come into effect from January 1 next year.
China also said that it would raise the upper limit for import tax for individuals purchasing from cross-border e-commerce platforms by 30 per cent.
From January 1 next year, the upper limit will be raised to 26,000 yuan ($5078) per year, from the previous limit of 20,000 yuan per year
At 11.08am (AEDT), shares in A2 were trading 31 cents, or 3.16 per cent, higher at $10.12.
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