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China tax rules to cool grey market for Danone, a2 baby formula

Products sold on overseas websites and shipped to consumers face tax hike of 11.9% starting this month

In recent years, as much as 15 per cent of the 55 billion-yuan baby formula industry in China was fuelled by purchases on overseas websites.


FOREIGN infant formula makers such as Danone may see a small but rapidly growing channel to the Chinese consumer close off as the government tightens a tax loophole that allowed lower prices on goods sold through websites operating outside of China.

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