Regulations Relating to
E-Commerce
On January 26, 2014, the State Administration for Industry and Commerce, the predecessor of the SAMR, adopted the Administrative Measures for Online Trading, which took effect on March 15, 2014. Under the Administrative Measures for Online Trading, the consumer is entitled to return the commodities within seven days from the date after receipt of the commodities without giving a reason, except for the following commodities: customized commodities; fresh and perishable commodities; audiovisual products downloaded online or unpackaged by consumers and computer software and other digital commodities; and newspapers and journals that have been delivered. The online commodity operators shall, within seven days upon receipt of the returned commodities, refund the prices paid by consumers for relevant commodities. In addition, operators shall not, by using contract terms or by other manners, set out the provisions that are not fair or rational to consumers such as those that exclude or restrain consumers’ rights, relieve or exempt operators’ responsibilities, and increase the consumers’ responsibilities, and shall not, by using contract terms and by technical means, reach transactions in a forcible manner. Online business operators and service providers are also required to procure the security and reliability of the transactions, and provide the products or services consistent with their commitments.
On March 24, 2016, STA, the Ministry of Finance, and the General Administration of Customs jointly issued the Circular on Tax Policy for Cross-Border
E-commerce
Retail Imports, which took effect on April 8, 2016. Pursuant to this circular, goods imported through the cross-border
e-commerce
retail are subject to the tariff, import value-added tax, or VAT, and consumption tax based on the types of goods. Individuals purchasing any goods imported through cross-border
e-commerce
retail are taxpayers, while
e-commerce
companies, companies operating
e-commerce
transaction platforms, or logistic companies shall be the withholding agents regarding such taxes.
To further regulate the
e-commerce
industry, on August 31, 2018, the Standing Committee of the National People’s Congress promulgated the PRC
E-Commerce
Law, which took effect on January 1, 2019, providing that
e-commerce
operators must comply with the principles of voluntariness, equality, fairness, and good faith, abide by laws, observe business ethics, equally participate in market competition, perform obligations regarding the protection of consumers’ rights and interests, environmental protection, intellectual property protection, and the protection of cybersecurity and personal information, take charge of the quality of products and services, and receive the supervision of the government and the general public. For example, an operator of an
e-commerce
platform must (i) comply with the requirements for the protection of personal safety and property security and the requirements for environmental protection regarding its sales of goods or provisions of services; (ii) disclose information of goods or services fully, truthfully, accurately, and promptly, and protect consumers’ right to know and right to choose; (iii) deliver goods or services to a consumer in accordance with the method and deadline committed or agreed with the consumer, and bear the risks and liability for transportation of goods, except where the consumer separately selects a courier service provider.
On June 12, 2019, the State Post Bureau and the Ministry of Commerce promulgated the Guiding Opinions on Regulating the Interconnection and Sharing of Data between Express Delivery and
E-commerce
Industries, which provides that if
e-commerce
participants agree to deliver commodities through express delivery, an
e-commerce
operator will be supported in providing the necessary delivery data to an express delivery service provider through the agreed means of data transmission. The
e-commerce
platform operator cannot, by restricting the interconnection and sharing of data, hinder the
e-commerce
participants from freely choosing the express delivery service. When collecting and sharing user information,
e-commerce
operators and enterprises engaged in express delivery business must abide by the provisions of laws and administrative regulations on information protection, and cannot be used for purposes unrelated to the delivery service they provide.
Regulations Relating to Internet Finance
On July 18, 2015, ten PRC governmental authorities jointly issued the Guidance on Promoting the Healthy Development of Internet Finance. This guidance refers to Internet finance as a new financial business model in