Shares in Bellamy’s, the seller of organic infant formula popular in Asia, fell after reports that China plans to tax goods bought online from overseas.
At the close, Bellamy’s was down 6.5% to $10.14.
Buyers of imported goods purchased online must pay up to 17% in value-added tax and a consumption tax, according to a policy released by the Ministry of Finance, the General Administration of Customs and the State Administration of Taxation.
Demand has been so great for Bellamy’s organic infant formula that the company has struck a manufacturing deal with Fonterra Australia to produce infant formula at Darnum, in southeast Victoria.
Much of the Australian infant formula ending up in China is bought online from resellers who buy here from retailers and then repackage.
Blackmores, the vitamin maker whose business is booming on demand from Asia, has launched a new infant formula product in a joint venture with Bega Cheese.