Is dropshipping legal now?

Since the implementation of the Interim Measures for the Administration of Network Reservation Taxi Operation Service on Nov. 1, 2016, qualified dropshipping is now legal.

According to Article 5 of the Interim Measures for the Administration of Network Reservation Taxi Operation Services, those applying to engage in the operation of network reservation taxis should have the ability to provide services both online and offline, and comply with the following conditions:

(1) having the legal personality of an enterprise;

(2) possessing an Internet platform for carrying out the operation of network reservation taxis, and the ability to interact with and process the information and data that are compatible with the proposed business. It has the conditions for the transportation, communication, public security, taxation, net letter and other relevant regulatory departments to access and query the relevant network data information in accordance with the law, and the database of the network service platform is connected to the regulatory platform of the administrative department in charge of rental cars, and the server is set up in Mainland China, and there is a network security management system and security protection technical measures in compliance with the regulations;

(c) If electronic payment is used, it should sign a contract with a bank or non-banking Payment institutions to sign an agreement on the provision of payment and settlement services;

(d) have a sound business management system, production safety management system and service quality assurance system;

(e) have the appropriate service organizations and service capabilities in the location where the service is provided;

(f) other conditions stipulated by laws and regulations.

Foreign investors investing in the operation of online taxi shall, in addition to meeting the above conditions, also comply with the provisions of laws and regulations relating to foreign investment.

Expanded Information:

Interim Measures for Administration of Network Reservation Taxi Operation Service Article 12 Vehicles to be engaged in the operation of network reservation taxi shall meet the following conditions:

(1) passenger cars with seven seats or less;

(2) installation of vehicle satellite positioning device with driving record function and emergency alarm device;

(3) vehicle technical performance in line with the requirements of the relevant standards for operational safety.

The specific standards and operational requirements of the vehicles shall be determined by the corresponding administrative department in charge of rental cars, in accordance with the development principle of high-quality service and differentiated operation, and in the light of the local actual situation.

China.gov.cn -- Interim Measures for the Administration of Network Reservation Taxi Operation and Service