Home»Cross-border E-commerce» US and Japan Strengthen Supervision of Chinese Cross-Border E-Commerce, Tariff Exemptions Restricted
With the continuous development of the ChineseCross-border E-commerceThe rapid development of Chinas cross-border e-commerce and its growing share in the global market have prompted increased market regulation in some countries. As two major markets, the United States and Japan have recently implemented new measures to strengthen oversight of cross-border e-commerce goods from China.
U.S. House Select Committee on Strategic Competition between the United States and the Communist Party of China Chairman Gallagher recently criticized the shocking growth in duty-free small parcel imports. Reports indicate approximately 1.05 billion shipments entered the U.S. duty-free under de minimis mechanism in 2023, a 53% year-on-year increase. This growth was primarily driven by small parcels from China, including products from e-commerce platforms Shein and Temu.
Additionally, U.S. Senators Sherrod Brown and Rick Scott sent a letter to President Biden urging abolition of the de minimis mechanism, arguing it harms U.S. manufacturers, workers and communities while allowing illegal goods into the U.S. market.
In Japan, the Ministry of Economy, Trade and Industry (METI) has also begun tightening regulations on cross-border e-commerce. In response to frequent incidents involving overseas online purchases, such as power bank fires, METI will require overseas electronics sellers directly targeting Japanese consumers to appoint a domestic representative responsible for safety management and dispute resolution, with the representatives information publicly disclosed. This new regulation aims to enhance consumer trust in merchants and will be implemented by 2025.
METI also plans to submit amendments during the current Diet session, including revisions to four product safety laws such as the Electrical Appliances and Materials Safety Law, to strengthen safety oversight of online products. If sellers fail to take appropriate measures to address incidents, the government will require e-commerce platforms to remove the listed products.
According to statistics, there were 103 major product incidents related to online purchases in 2022, six times the number a decade ago. This move by the Japanese government aims to raise product safety standards and ensure consumer rights are protected.
These new measures in the U.S. and Japan demonstrate that major global markets are intensifying regulation of cross-border e-commerce goods. This presents a new challenge for Chinese cross-border e-commerce businesses, which must pay closer attention to compliance with target market laws and regulations, ensure product quality and consumer safety, and maintain and expand their overseas market share. At the same time, this represents a significant adjustment to the global e-commerce ecosystem, signaling that cross-border e-commerce development will increasingly be influenced and constrained by international regulations.