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28 Aug 2000

Dr. Ecommerce,

What are some laws about marketing a company in China, via the internet, from an outside country? Do any tariffs exists for a Chinese company sending products by mail directly to customers who have ordered through the internet?

thank you,

Lee

Dear Lee:

As far as I know, there are no laws preventing a firm outside China from promoting a Chinese firm via the Internet or other means -- provided, of course, you have some kind of contractual agreement with the Chinese firm. In other words, you can't market for them without getting their permission first.

If the Chinese firm sends products to customers via mail or courier, the customers will normally be liable for customs duties and, in some countries, VAT. This is usually payable at the post office or to the shipping company and on small parcels is often overlooked.

Although it is the customers who will be responsible for these duties, I suggest you inform customers via your web site that they may be liable for customs duties and other taxes upon receipt of their goods.

If the Chinese firm is selling products which are illegal or restricted in the customer's country (for example prescription drugs), these goods may be confiscated or returned to the sender, in which case the customer will very likely demand her money back (and normally get it if she has paid by credit card). Hence if there is any doubt about the legality of the product in your target market(s), it is best to check in advance. You can do this by contacting the commercial sections at Embassies or your courier company.

Good luck,

Dr. Ecommerce