Future Trend of China’s CBEC Policy Revealed

With the CBEC grace period coming to an end, the new CBEC policy is expected to be unveiled by the end of 2018. Currently the framework of new administrative measures have been finalized, and it is said that the new policy will be more compatible with the characteristics of CBEC.

“Economic Information Daily” revealed that the CBEC grace period will not be extended again this time, and some practical situations and industrial features were taken into consideration while formulating the new policy, for example:

• In terms of document submission, only 3 items related to logistics, transaction and payment are required for CBEC traded goods

• Products imported through CBEC are still be subject to the positive list, but it expected that in practical application of requirements authorities will be more flexible particularly when it comes to meeting demand for innovative products

CBEC policy is likely to continue to develop dynamically over the next several months to years. The release of the new administrative measures at the end of the year will offer important clarifications on significant issues like requirements to conduct registration for special foods, registration of special use cosmetics etc. China holds a positive attitude to CBEC, highlighted by the continued expansion in comprehensive pilot zones. It is our expectation that more facilitation measures will be carried out.

In 2016 China decided to implement a `new policy (effective on Apr. 8, 2016) on CBEC traded goods, which required levying of importation tax and imposition of new measures requiring special foods traded on CBEC obtain registration/filing. However, that policy was seen as both excessively disruptive and counterproductive and prompted authorities to extend a grace period (twice) until the end of 2018.