Freedom Foods and Murray Goulburn revealed their ultra-high processing temperature (UHT) milk and adult powdered milk were listed on China's revised "positive list," giving them the go signal to sell their products across Chinese websites through the country's free-trade zones without taxes.

Like Us on Facebook

Both milk companies halted trading their milk products in China after new regulations were implemented. With the inclusion of their products in the positive list, both companies plan to continue selling after China made amendments of the list of products allowed to be sold on cross-border websites.

"MG has been advised by various commercial partners that they intend to return MG's Devondale UHT and adult milk powder products to their cross-border platforms in the coming days," a Murray Goulburn representative said.

The new law, which was issued on April 8, stipulated that retail goods purchased online from foreign suppliers are subject to leverages, import VAT, and consumption tax.

The announcement caused share price gyrations particularly in China's trade partners in Australia.

"Cross-border e-commerce trade in both UHT and adult milk powders was interrupted for the past week, however, as previously stated this interruption does not have a material impact on MG's business," the spokesperson from Murray Goulburn said.

Meanwhile, Freedom Foods said that Chinese dairy firms and other distributors consume the majority of the company's UHT product sales.

China's so-called positive list of products that can be sold via cross-border Chinese websites arrived after foreign goods purchased online were slapped with an 11.9 percent tax. The recent changes were imposed to stimulate fair play between online and traditional brick-and-mortar stores. 

TagsUHT milk, adult powdered milk, Freedom Foods, Murray Goulburn, Australia, food safety, e-commerce, online selling