J&L Hong Hao International Co., Ltd
The J&L Hong Hao International Co., Ltd, located in Taiwan, and we are a Taiwanese company, uniquely acquired a “Cross-Border E-Commerce” platform license, for the rare medicines supplies, from Mainland China, in December of year 2019 (2019/12).
J&L Hong Hao International Co., Ltd operates a unique e-commerce platform called 8fangyao.com to recommend rare medicines and oncology medicines, treatments and others related concerned health supplements to the patients.
Our Partner –
Chongqing Yu Chang Hang Trade Co., Ltd.
YCH (full name: Chongqing Yu Chang Hang Trade Co., Ltd.; known as: Chongqing Yu Chang Hang), as the Cross-border EB platform common operator and domestic service provider, established at 2014, is a cosmeceutical chain store company, business scope reach to China’s western 14 autonomous cities (includes Chongqing, Sichuan, Guizhou, Yunnan, Jiangxi, Hubei, Hunan, Qinghai, Xinjiang, Shaanxi, Gansu, Ningxia, Henan, Tibet).
YCH’s business blocks include cosmeceutical business supply chain product, label, channel, marketing, payment, logistic, regulation, operation, and focus on professional services to the State owned mega drug chain store.
About Cross-Border Electronic Commerce
Bonded model
Oversea direct mail order model
Limitation: Cross-border EB, per order not exceed 5,000 RMB/per person, 26,000 RMB/per year
Basic terms of Cross-Border Electronic Business
“Cross-border EB retail import”, here in the announcement, means domestic consumers through cross-border EB third party platform operator to purchase foreign medicine, via pre-arrangement of “Internet trade bonded import” (Custom supervisory code 1210) or “direct trade import” (Custom supervisory code 9610) import delivery trade consuming behavior.
Ministry of Commerce, Development & Reform Committee, Ministry of Finance, General Administration of Customs, Tax Administration, Administration for Market Regulation’s Cross-border Electronic Business retail import supervisory related announcement –BFD [2018] no. 486
Cross-border EB retail import mainly include the followings.
- Cross-border EB retail import operators (Cross-border EB enterprise): foreign registered enterprise provide domestic consumers service through the mean of cross-border EB platform, the ownership of the medicine. (J&L, contracted vender)
- Cross-border EB third party platform operators (Cross-border EB platform): provide local business registration services, connect trade parties (consumers & Cross-border EB enterprise) through a website, for internet trade connection, trade regulation, trade matching, publication of information services. (J&L, YCH)
- Domestic service provider: provide local business registration services, commission to offer services such as application, payment, logistics, warehousing. The entity capable of direct payment to Custom office, provide logistics and warehousing information, and receive Custom & market supervisory, and continue for the post-market responsibility. (YCH, logistic entity, payment enterprise)
- Consumers: Domestic buyer to the Cross-border EB retail import (patient)
Progression of China’s policy
Starts from a special order of rare but urgent medicine
According to Premier of the State Li Keqiang hosted state executive meeting and approved the “internet+medical health” measures,
On April 12, Premier of the State Li Keqiang hosted state executive meeting, approve “internet+medical health”measures, ease visiting a doctor & medical care problem, improve public health standard; impose duty free for the import antitumor agent & encourage import innovative medicine, to benefit public and fulfill patient need;
Premier of the State Li Keqiang hosted state executive meeting and approved the “internet+medical health” measures.
To ease medical cost burden & selection, particularly cancer patient, starting from 2018/05/01, duty free for all the generic antitumor agent, antitumor agent alkaloid & related imported on-the-shelfed Chinese medicine. Also, reduce VAT for the manufacture of antitumor agent and the related import services. To effective gather the market data, government centralized purchasing, and national health insurance to cover items such as import innovative medicine, particularly the urgent need antitumor agent. To reduce the above overall cost, the Cross-boarder EB is one of the solution, as it wipe out the unnecessary gap and cost, to benefit the patient and the family.
Premier of the State Li Keqiang hosted state executive meeting and approved the “internet+medical health” measures.
Quantity limitation/TAX policy from the Custom
According to《PROC Customs Act.》chapter 4,
Item 46: Personal carry item enter or exit Custom, foreign mail order shall limit as self-used, a reasonable amount, and shall under the supervision of the Custom.
“PROC Customs Act.”
Item 47: Personal carry item enter or exit Custom shall declare truthfully and accept the inspection. Custom’s seal label cannot be open or destructed.
“PROC Customs Act.”
Item 49: Mail order shall be inspected first, then release to the delivery agent or the consumers.
“PROC Customs Act.”
According to General Administration of Customs announcement, 2019, no. 63 modify《PROC import article classification table》&《PROC import article duty-paid table》,
According to “State Council Custom tax rule committee modify import tax rate announcement” (general tax committee [2019] no. 17), General Administration of Customs decide to stipulate 2018, no. 140 (see (4)-1) “PROC import article classification table” & “PROC import article duty-paid table” modification, to categorize principle and duty-paid pricing, stipulation at (see attachments), 2019/04/09 effective.
State Council Custom tax rule committee modify import tax rate announcement” (general tax committee [2019] no. 17); General Administration of Customs announcement: 2019, no. 63 modify《PROC import article classification table》&《PROC import article duty-paid table》
Four Legitimate Ports
Chongqing is one of the four approval free trade port!
(34) Support establish port for the first time import medicine and biological manufacturing products (responsible dept.: NMPA, General Administration of Customs, scope of application: Chongqing free trade test zone)
State Council announcement, the reform & innovative measures pertaining to the free trade zone test model section [2018] no. 38
port of import medicine and biological products
Currently, under State Council 2018/04/12 meeting minutes, medicine is included in the《PROC import article duty-paid table》, and designate Beijing, Shanghai, Guangzhou and Chongqing as a C-B EB channel to satisfy mean of public medicine needs.
On 2019 May, Guangzhou has successfully implement first national direct purchasing of antitumor agent through Cross-border EB. This model experiment Cross-border EB direct purchasing effective for only 2 years from now on, and permit one platform/ per in these four cities.
Permission to establish port of the first time import medicine and biological products are: Beijing, Shanghai, Guangzhou & Chongqing. Chongqing also is the only one city with the “railroad transportation” privilege.
Based on the State Council 2018/04/12 meeting, Shanghai city create “Shanghai city internet hospital general administration guideline”, and is expect to implement on 2019/09/01.
J&L Hong Hao International Co., Ltd is a sole partner to Chongqing Yu Chang Hang Trade Co., Ltd., leverage up to gain the Cross-border EB platform from China Customs, potential to be a sole platform from “Chongqing” port of entry in western area experimental zone.
Our political advantage and past performance, enable us to become national no. 2 and the no. 1 Cross-border EB medicine enterprise in western area.