A foreign company does not automatically need its own wholly foreign-owned enterprise (WFOE) to sell eligible goods to consumers in China through cross-border e-commerce. China's retail import rules expressly recognise an overseas-registered company as the seller. That company must appoint a registered business in China to act as its domestic agent for customs purposes, and the orders must meet the rules for the cross-border retail import channel.
The distinction is who buys the product and what happens to it after it enters China. A Chinese consumer ordering an imported item for personal use is one transaction. Importing a carton of the same product to sell to local shops is another. Setting up a WFOE may be useful for the second business model, but it is not a blanket starting requirement for the first.
Which route are you actually planning to use?
| Your plan | Route to examine | The key question |
|---|---|---|
| Your overseas company sells individual orders to consumers in China | Cross-border e-commerce retail import, with direct shipment (9610) or bonded import (1210) | Is the product eligible, and can the platform, agent and logistics provider supply the customs data? |
| You import stock for a Chinese distributor or shops to resell | Ordinary commercial import and domestic distribution | Who is the importer, who owns the stock in China, and who invoices the Chinese buyer? |
| A company in China sells products to buyers overseas | Export rules, which may include cross-border e-commerce export routes | Which Chinese entity exports, and which declaration and tax records will it keep? |
The first row is the focus of this article. Our trading WFOE guide covers the onshore trading model, including customs, banking and VAT records. For a China-based exporter, also read our export VAT refund guide. Do not assume that a retail import code can be used for bulk stock intended for resale.
What does an overseas seller need instead of its own WFOE?
Under the 2018 joint ministry rules, the retail import seller is an overseas-registered company that owns the goods. It must appoint a company registered in China. The domestic agent registers with Customs, makes truthful declarations, accepts regulatory oversight and bears the stated legal responsibilities. The Customs service guide repeats this requirement for overseas sellers.
That agent can be an independent service provider; the rule does not say the overseas seller must incorporate and own a Chinese subsidiary. In practice, the seller still needs a workable arrangement among its agent, platform, payment provider, carrier and, if used, bonded warehouse. The overseas seller remains responsible for product quality and consumer rights, including product information, returns and recalls. Handing a parcel to a fulfilment provider does not transfer those duties away.
Before signing with a platform or agent, ask who will own the stock, who will be named in the customs records, who sends the order, payment and logistics information, and who handles a rejected or returned order. An overseas checkout page on its own does not establish that an order qualifies for China's cross-border retail import treatment.
Can your product and order use the retail import route?
Check the product first. Cross-border retail imports must fall within the applicable retail import product list, including any notes or exclusions for the product's tariff classification. The list was adjusted in 2022; confirm the current classification and requirements for your exact item before quoting prices or sending stock. Food, cosmetics, medical products and other regulated goods deserve particular care.
Next, check the buyer and the data trail. The route is designed for a consumer in China buying for personal use. Customs requires electronic transaction, payment and logistics information that can be checked against the order, subject to the specified data-transmission arrangements. The buyer may not resell the goods in China's domestic market. The regulatory treatment of certain first-import approvals for qualifying personal-use products is not a general waiver of product safety or quarantine requirements.
Finally, check the fulfilment model:
- Direct purchase import (9610): the consumer places an order and the goods are sent from overseas through the supported direct-shipment process.
- Bonded online-shopping import (1210): eligible goods are placed in a qualifying customs-supervised area or Type B bonded logistics centre before the consumer order is fulfilled. A regular warehouse is not enough.
The Customs guide sets out the electronic data and location requirements for these routes. Ask a prospective logistics provider to show how one sample order would be declared, paid for, delivered and, if needed, returned.
What about the buyer's tax and spending limits?
China's published retail import tax policy sets a RMB 5,000 limit for a single transaction and a RMB 26,000 annual limit per buyer. Within the qualifying limits, the published policy provides for a temporarily zero customs duty rate and import VAT and consumption tax at 70% of the statutory amount. These are buyer-side import rules, not a promise that every product is “tax-free”. The taxable value includes the retail price, freight and insurance.
There is a specific exception for an order containing one indivisible item priced above RMB 5,000 but below the annual limit: it may still enter through the retail import channel, with customs duty, import VAT and consumption tax charged in full at the goods rates. Check this case with the platform or customs adviser instead of treating RMB 5,000 as a hard ban. The Ministry of Finance's 2018 notice sets out the limits and exception; its original tax notice explains the tax basis.
When would setting up a WFOE make sense?
A Chinese company may be the better fit if you want your own team and contracts in China, to import goods for domestic wholesale, or to run a local distribution business. The decision then goes beyond the cross-border retail import rule: business scope, product permissions, customs registration, invoices, tax and banking all matter. Start with the WFOE registration steps and the trading WFOE checklist.
Running a marketplace for other sellers is also different from selling your own goods through an existing platform. If you plan to operate a site or app in China, assess the hosting and online-service model separately; our ICP filing versus licence guide explains the questions to ask. A WFOE registration alone does not answer the platform-licensing question.
Does registering in Hainan change the answer?
The State Council approved an island-wide Hainan cross-border e-commerce comprehensive pilot zone in 2025. That can matter when comparing operating locations and service providers, but it does not remove the overseas-seller agent requirement or turn every Hainan address into a 1210 bonded warehouse. Customs still requires that bonded retail import activity take place in an eligible customs-supervised area or Type B bonded logistics centre.
If you are considering a Hainan company for wider trade operations, read our Hainan customs operations guide. For the movement of business funds, see our separate cross-border accounts guide; an account arrangement does not determine which customs route a product can use.
A practical first check
Take one real product and one sample order. Record its description and likely Harmonized System (HS) code, where the seller and stock are located, whether the buyer is a consumer or reseller, the sale price including shipping, the proposed platform, and the delivery route. Then ask the proposed agent and logistics provider to confirm the product-list entry, customs data flow, tax treatment, return process and their respective responsibilities. That is a more useful starting point than registering a company before you know which transaction you are trying to make.
Official references
- Ministry of Commerce and five other agencies: rules for cross-border e-commerce retail imports
- China Customs: cross-border e-commerce supervision service guide
- Ministry of Commerce: 2022 adjustment to the retail import product list
- Ministry of Finance: retail import transaction limits and single-item exception
- Ministry of Finance: retail import tax policy
- State Council: Hainan island-wide cross-border e-commerce pilot zone
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