China to Accelerate Development of Crossborder Commerce

The State Council of China outlined its strategy to facilitate cross-border commerce in a notification published on Oct. 19, 2018. The scheme falls into three parts:

• Part 1: General requirements (including goals)

• Part 2: Tasks (including 20 measures from 5 aspects)

• Part 3: Organization and implementation

In accordance with China’s far reaching industry, market and trade reform task of “streamlining administration, centralizing administrative oversight, delegating powers and moving away from central authorities’ micromanaging provincial and local authorities, and improving regulation and services”, the State Council set goals for the customs and relevant departments of cross-border commerce. The visions are:

• To reduce the duration and the number of credentials needed during customs clearance by one third by the end of 2018

• To reduce the compliance cost of imported and exported goods in containers by half by the end of 2020.

• To reduce the time duration of customs clearance by half by the end of 2021.

• To improve ranking in the cross-border trade convenience list by 30 slots by the end of 2021.

• To create a port business environment where everything is active, efficient, open and convenient.

Major Measures (from 5 Aspects)

1. Cut down on check items and move it online:

   Some credentials will be canceled and the number of them will shrink from current 86 to 48 by Nov. 11, 2018; it will optimize procedure involved in applying for online declaration and management credentials

2. Improve customs work mode and procedure:

   China is to realize the integration of customs, border, maritime inspections, sharing information with market and commerce departments, and integration of GAC and inspection & quarantine; conduct random inspections by randomly selected law enforcement officers or inspectors and publicize the results; encourage cargo owners to declare cargos at the customs in advance and get their documents reviewed in advance; innovate new ways to collect customs duty; adopt review and check results of third party inspection agencies; and etc.

3. Level up efficiency by information collaboration:

   Another key goal is the development of a public information platform where comprehensive data shared by departments of transportation, customs and market including information of license, certificate, accreditation inspection and quarantine, customs check, credit rating etc. are available by 2020; accelerate inspection and quarantine of fresh and alive products on the premise that safety risk is controllable; draft a list of fresh agri-products with China’s neighbors and conduct quick check on them; and etc.

4. Digitalize port information management

   Digitization of documentation such as bill of lading by the end of 2019, and put containers’ under digital supervision by June, 2019; expand the functions of “China International Trade Single Window” to GAC specially supervised sectors and to China Cross-Border E-Commerce Comprehensive Pilot Zones; apply high-tech equipment during inspection, such as HD detection system and smart lock; and etc.

5. Upgrade management system

   China promotes international cooperation on technical standards, required documents and information sharing in port management and transportation; it aims to bring down compliance cost, clarify charged items, and crack down on illegal charging; it is to reduce money spent on every container by over $100 based on the figure of 2017 by the end of 2018; publicize customs clearance time duration limit, and provide helpline service; etc.

Flagging Fortunes of Daigou to Precipitate Concomitant Rise in CBEC

China’s new E-Commerce Law has been unveiled and “daigou” traders (Chinese diaspora that purchase goods in foreign countries and bring them back in China and sell at a higher price) are facing increasingly difficult obstacles, which should precipitate a concomitant rise in CBEC sales.