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CFDA Clarifies Crossborder Ecommerce Offline Experience Store Administrative Requirements

The CFDA recently clarified the license requirements of offline experience stores operated by CBEC platforms.

Takehome: An offline experience store is a physical store where customers can browse and look at sample products sold on CBEC platforms. Goods imported through CBEC cannot be directly purchased in these stores but it does provide customers with a more authentic shopping experience and allows them to pick goods which they can then purchase online.

A food operation license is an essential license for food manufacturing and food business operation, including sale of foodstuffs, canteens, and catering service issued by provincial FDAs. The CFDA recently clarified the license requirements of offline experience stores. CBEC policies stipulate that goods imported via CBEC channel cannot be sold in offline shops but should be mailed to consumers. In addition to showcasing imported goods some experience shops also sell general trade goods necessitating the issuance of a food distribution license.

Generally CBEC offline experience shops that actually sell products should apply for a food operation license. For premises where no goods are sold the license is not required. There are lots of CBEC platforms operating offline experience shops showcasing imported products, allowing customers to place orders and providing aftersales services. The offline experience shop is a strategy that CBEC enterprise are exploring to develop the CBEC online to offline (O2O) model.

Reference

CFDA Official Response

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