Market procurement trade refers to a trade mode in which qualified operators purchase goods in market concentration areas recognized by the national commerce authorities and other departments, with the value of goods on a single customs declaration being less than 150,000 US dollars (including 150,000 US dollars), and handle export customs clearance procedures at the place of purchase. According to the Announcement on the Revision of the Market Procurement Trade Supervision Measures and Related Supervision Methods (Announcement No. 221 of the General Administration of Customs in 2019), the market procurement trade mode refers to the trade mode in which goods are purchased in a recognized market concentration area and the export customs clearance procedures are handled by qualified operators. The code for the market procurement customs supervision mode is "1039", and the full (abbreviated) name is "market procurement". The maximum value of goods for a single customs declaration under the market procurement trade mode is US$150,000. advantage I. VAT Exemption - No refund. ① Solve the problem of uninvoiced export trade of "small orders, miscellaneous goods and many varieties" by market merchants; ② A new sunshine channel has been added to prevent the false issuance of VAT invoices. II. Customs clearance facilitation - simplified declaration. ① Simplified declaration: the top five commodities with the largest value shall be declared item by item on the export declaration form in descending order of value; ② The remaining commodities are grouped according to the “chapter” in the Customs Import and Export Tariff of the People’s Republic of China. The tax number of the commodity with the largest value in each “chapter” is used as the combined tax number, and the value, quantity, etc. of the goods are also grouped accordingly. III. Flexible collection of foreign exchange - multiple entities are allowed to collect foreign exchange. ① Allow market procurement trade to be settled in RMB. ② Allow export foreign trade companies, market suppliers, overseas buyers, purchasing intermediaries and other trading entities to open foreign currency settlement accounts and collect and settle foreign exchange based on the trade background. not applicable (1) Commodities the export of which is prohibited or restricted by the State; (2) Commodities that have not been confirmed by the market procurement commodity certification system; (iii) Other commodities that are not suitable for market procurement as determined by the competent trade control authorities. significance Explore potential demand in international markets It can transport abundant commodities on the market overseas, stimulate the potential demand in foreign markets, and expand the international market coverage of Chinese small commodities. Stimulate the production potential of small, medium and micro enterprises It provides a shared commercial circulation and foreign trade platform for the vast number of small, medium and micro enterprises and family workshops that are unable to build their own foreign trade systems, builds a convenient channel for connecting with the international market, promotes physical production and employment, and stimulates the production potential of small, medium and micro enterprises. Promoting innovation in the administrative management system in the field of foreign trade Comprehensive reforms and innovations in customs, taxation and exchange rates have greatly optimized the foreign trade business environment and business processes. Promote the transformation and upgrading of foreign trade in professional markets It has explored new paths for thousands of professional markets across the country to conduct international trade. Implementing the “Belt and Road” national initiative Promote smooth trade, financial integration and people-to-people exchanges with countries and regions along the Belt and Road. List of pilot projects for market procurement trade The first batch: Yiwu, Zhejiang. The second batch: Dieshiqiao International Home Textile City in Haimen, Jiangsu and Haining Leather City in Zhejiang. The third batch: Changshu Garment City in Jiangsu Province, Huadu Leather Market in Guangzhou, Guangdong Province, Linyi Mall Engineering Materials Market in Shandong Province, Hankou North International Commodity Trading Center in Wuhan, Hubei Province, and Baigou Luggage Market in Hebei Province. The 4th batch: Wenzhou (Lucheng) Light Industrial Products Trading Center, Quanzhou Shishi Garment City, Hunan Gaoqiao Market, Asia International Furniture Materials Trading Center, Zhongshan Lihe Lighting Expo Center, and Chengdu International Trade City. The fifth batch: Xiliu Garment City in Liaoning, China Textile City in Keqiao, Shaoxing, Zhejiang, Luqiao Daily Necessities and Plastic Products Trading Center in Taizhou, Zhejiang, Children's Wear and Daily Consumer Goods Trading Management Center in Huzhou (Zhili), Anhui Bengbu Zhongheng Trade City, Fujian Jinjiang International Shoes and Textile City, Shandong Qingdao Jimo International Trade City, Shandong Yantai Sanzhan Wholesale Trading Market, Henan China (Xuchang) International Hair Products Trading Market, Hubei Yichang Three Gorges Logistics Park, Guangdong Shantou Baoao International Toy City, Guangdong Dongguan Dalang Woolen Textile Trade Center, Yunnan Kunming Junfa·New Luoshuiwan International Trade City, Shenzhen South China International Industrial Raw Materials City, Inner Mongolia Manzhouli Mangou Center (Border Trade Commodity Market), Guangxi Pingxiang Export Commodity Purchasing Center (Border Trade Commodity Market), Yunnan Ruili International Commodity Trading Market (Border Trade Commodity Market). Market procurement trade export process Qualification Record Foreign trade operators engaged in market procurement trade shall register as market procurement trade operators with the competent commercial authorities in the market cluster area, and register as consignees and consignors of imported and exported goods at the customs in accordance with relevant customs regulations. Enterprises can register as consignees and consignors of imported and exported goods by "multiple certificates in one" or through "single window" or "Internet + customs". Product Registration Foreign trade operators are responsible for the authenticity and legality of the goods they export as agents. The commodity information confirmed by the market procurement commodity identification system shall be shared with the customs through the market comprehensive management system. For the commodities confirmed by the market comprehensive management system, the customs shall implement supervision in accordance with the market procurement trade mode. Submit an application for inspection and quarantine For market-purchased export commodities that need to be inspected and quarantined at the place of purchase, their foreign trade operators should establish management systems for qualified suppliers, commodity quality inspection and acceptance, and commodity traceability, provide relevant information such as business premises and storage facilities, and submit inspection and quarantine applications to the customs at the place of purchase before declaring export. Kind tips Foreign trade operators should fulfill their primary responsibility for product quality, and their agricultural products, food, and cosmetics that are subject to supervision or official certification requirements in the production, processing, and storage processes of the export market should comply with relevant laws and regulations or bilateral agreement requirements. Export declaration The enterprise obtains registration and enters market transaction and cargo grouping information into the market comprehensive management system. After confirmation by the market procurement commodity identification system, the system generates customs declaration data and sends the declaration to the "single window". If there are more than 5 varieties of commodities listed in the commodity list corresponding to each customs declaration, simplified declaration can be implemented in the following ways: (1) The top five commodities with the largest value shall be declared item by item on the export declaration form in descending order of value; (2) The remaining commodities are grouped according to the “chapter” in the Customs Import and Export Tariff of the People’s Republic of China. The tax number of the commodity with the largest value in each “chapter” is used as the combined tax number, and the value, quantity, etc. of the commodities are also grouped accordingly. Kind tips Simplified declaration is not applicable to the following commodities: (1) Where export tariffs are levied; (2) Implementing inspection and quarantine; (3) Where the Customs has other regulations that do not apply to simplified declaration. Related laws General Administration of Customs Announcement No. 114 of 2020 (Announcement on Expanding the Pilot Program of Market Procurement Trade Mode) General Administration of Customs Announcement No. 221 of 2019 (Announcement on the revision of the Market Procurement Trade Supervision Measures and related matters) General Administration of Customs Announcement No. 63 of 2016 (Announcement on the Expansion of the Pilot Program of Market Procurement Trade Mode) |
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