!ALERT! – Cross Border FTZ Model Extended to end of 2017

Cross Border FTZ Model Extended to end of 2017

An announcement from US China Health Products Association:

November 15, 2016 saw a post go out on China’s Ministry of Commerce’s site stating that the agency was extending the grace period of cross border e-commerce that is using the Free Trade Zone (FTZ) distribution model. Back in April 2016 a variety of products were not included on a list of approved products for cross border commerce. Health products were not on that list. The following days saw chaos ensue. Many global players using FTZs saw their sales crash as FTZ officials froze sales and shipments of supplements. A month later the government realized this move hurt foreign players as well many Chinese businesses and the FTZs, so a grace period was enacted giving those involved until May 17, 2017 to find alternative business models. The cross border model has proven to be quite successful and because of this the government today has extended that grace period until the end of 2017. Many are hoping the government will realized this business model is here to stay and the grace period will be ended. (Source: MOFCOM / USCHPA)