China Expands the CBEC Pilot Cities

Apart from the existing 86 cities and Hainan island, CBEC pilots expand to all cities (areas) where pilot free trade zones, CBEC comprehensive zones, comprehensive bonded zones, import trade promotion innovation demonstration zones and bonded logistics center (B type) are located. The pilot expansion will greatly reduce the cost and time of CBEC logistics, and better satisfy domestic consumption demand.

On Mar. 22, 2021, six departments (Ministry of Commerce, National Development and Reform Commission, Ministry of Finance, State Administration of Taxation, General Administration of Customs, State Administration for Market Regulation) jointly announced to expand the CBEC pilots to all cities where pilot free trade zones, CBEC comprehensive zones, comprehensive bonded zones, import trade promotion innovation demonstration zones and bonded logistics center (B type) are located ¹. Related cities/areas can conduct import business of bonded warehouse model (customs supervision method code 1210) following [2018] No. 486 announcement as long as they are confirmed by local Customs of reaching corresponding supervision requirements. This announcement comes into effect since the date of promulgation.

The industry experts stated that the huge increase of pilot cities this time will promote the coordinated economic development in eastern, central and western China, as well as reduce CBEC logistic cost and shorten logistic time so as to better satisfy domestic consumption demand ². “The expansion of CBEC pilots showcases the recognition for the achievements obtained in the past year and the confidence in future supervision capability”, said Hong Yong, associate researcher of E-commerce Research Institution subordinated to Ministry of Commerce.

In Nov. 2018, six departments including Ministry of Commerce unveiled the “Cross Border E-Commerce Retail Import Policy”, which were implemented in 37 pilot cities. In 2020, CBEC pilots increased to 86 cities and Hainan island.