Points that Chinese cross-border e-commerce businesses should be aware of regarding clauses

Below is a summary of the provisions that Japanese companies with stores on Chinese platforms and businesses operating e-commerce businesses in China must comply with under the China Electronic Commerce Law.

(1) Registration and establishment of a Chinese corporation is a prerequisite

“The entities list in Articles 10 to 12 are bolivia whatsapp data requir to register, pay taxes, and obtain relevant administrative permits.”
If you open a store on China’s e-commerce platforms such as Tmall or JD.com, or if you set up and sell on an e-commerce site locally in China, the basic premise is that you will ne to establish a Chinese corporation, obtain the appropriate administrative permits, and pay taxes.

(2) Information on Chinese business licenses and other details display on the website

“(Article 15) Information on business licenses, administrative permits, etc. must be continuously display in an easily visible location on the homepage of the website.”
E-commerce businesses must continuously display information on business licenses, administrative permits, etc. in an easily visible location on the homepage of their e-commerce sites.
If an e-commerce business violates this obligation, it will be order to make corrections by the market supervision and administration department within a time limit and may be subject to a fine of up to 10,000 RMB.

(3) Prohibition of false advertising, fabrication of reviews, etc.

“(Article 17) Comprehensive information on products and services must be disclosed, and users’ rights to know and to wash must be guaranteed.
Also, false or misleading commercial advertising, fraud, and acts of misleading users through fictitious transactions, fabrication of user reviews, etc. are prohibit.”
E-commerce operators must accurately and truthfully present information about products and services.
In other words, users’ rights to know and network with managers from other companies to choose are guarante, and they must not infringe on users’ right to know by using fictitious transactions or fictitious user reviews. Therefore
, in China, e-commerce operators must not engage in false acts such as creating fictitious word-of-mouth reviews or user reviews that make their products or brands appear popular.

In this regard, once the China Electronic Commerce Law comes into effect, it is expect that the Chinese authorities will step up their monitoring and administrative enforcement, and Japanese companies conducting e-commerce transactions in China will be requir to implement more thorough information management.

(4) Tying sales must be handl with caution

“(Article 19) When engaging in bundld sales, users must be alert in an easy-to-understand manner.”
Bundl sales refers to a sales method in which, for example, when you make a reservation on a hotel or airline reservation site, meals, transportation, insurance, etc. are includ as defaults. When selling
such products or services, it is mandatory to always alert users.
In addition, it is prohibit to engage in bundl sales with defaults such as those mentiond above.

(5) Handling of Personal Information

“(Article 23) Clearly indicate to users the methods and procures for searching, updating, deleting, and cancelling their personal information
.” “(Article 24) Comply with requests from relevant government departments to provide relevant e-commerce data in accordance with laws and regulations.”
E-commerce store operators and e-commerce businesses must comply with laws and regulations regarding the protection of personal information of Chinese people. They
are prohibit from setting unreasonable conditions for the procures for viewing, correcting, and deleting user information, and for cancelling user registration.
In addition, they must comply with requests for information disclosure from Chinese authorities in accordance with laws and regulations. Violations are subject to fines of up to 10,000 yuan.

(6) To cross-border e-commerce businesses

“(Article 25) When conducting cross-border canada cell numbers e-commerce, you must comply with the relevant laws and regulations, such as import and export supervision and management.”
Regarding (Article 25) mentioned above, since the “Cross-border e-commerce import and sales policy” states that “the deferral measures for the submission of customs certificates (customs certificates) for cross-border e-commerce will continue after January 2019,” this clause is unlikely to add new regulations. However, since there is a
high possibility that laws and regulations will be revised in the future, it will be necessary to keep a close eye on the movements of the Chinese authorities.