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How to mine the "rich ore" of new foreign trade formats? Watson & Band Import and Expo

2022-09-19

One of the new forms of foreign trade, market procurement trade, has expanded the scope of subjects participating in foreign trade, stimulated market vitality, and helped many small, medium and micro enterprises to do foreign trade at their doorstep. According to the Huacheng Import and Export Data Observation Report, there are two national market procurement trade pilots in Haimen International Home Textile City and Changshu Garment City in Jiangsu. There are about 5,000 registered entities in the two places, and the cumulative export exceeds 15 billion US dollars. The market procurement trade method explored by Jiangsu is receiving national attention.


The unstoppable momentum of new business formats

The market procurement trade method is a new type of trade method suitable for small and micro enterprises. It is stipulated that the value of the goods in the single customs declaration form is less than 150,000 US dollars, and those who meet the conditions can enjoy the convenience of simplified declaration and non-refundable tax exemption. This builds a low-cost and high-efficiency export channel for small merchants with "foreign trade dreams", and solves the problems of "small order, miscellaneous goods, many varieties" and no VAT invoices. Import and export data show that from January to August, the province's market procurement trade received a total of 24,167 export declarations, with a value of 14.329 billion yuan, an increase of 25.2% and 22.6% year-on-year respectively.


On September 14, a batch of goods from the Eric Textiles Business Department, Mocheng Street, Changshu City, left the country smoothly and was sent to Greece. "We learned that the 'Shi Caitong' platform can provide compliant export channels for small, medium and micro enterprises, and can provide one-stop comprehensive foreign trade services for export business, so we actively maintain communication with the platform and file with 'Shi Caitong'." Zhang Zhenjie from the Operation Department said, "In August, we received an order for this batch of home textile quilts from Greek customers. On September 7, we packaged 2,000 chemical fiber quilts worth 23,431 US dollars and packed them in accordance with the requirements of the 'Shi Caitong' platform. The whole process was supervised and shipped to Ningbo Port (601018) after loading, and was declared and released to Changshu Customs in the form of integrated declaration.


Originated in Changshu, “City Caitong” is an enterprise-side comprehensive service platform pioneered by the national market procurement trade pilot. According to import and export data, from January to August this year, the "Shi Caitong" platform exported more than 20,000 shipments of goods, totaling more than 1.8 billion US dollars, and the export value increased by more than 47% year-on-year. "The platform has built a complete cross-border export service chain, so the number of enterprises settled on the platform continues to increase, and the total export volume continues to grow. As the first enterprise-oriented platform in the national pilot, we have successfully exported this model to Pingxiang, Guangxi and Ruili, Yunnan. The two pilots and the innovative creation of a market procurement trade port pilot model according to local conditions have attracted the attention of various pilot markets across the country.


As of August 31, the "City Caitong" platform has served more than 6,600 small and medium-sized enterprises across the country, using the customs clearance integration model to achieve normalized customs clearance at 73 ports across the country, with goods reaching 153 countries and regions, with exports exceeding 30 billion RMB, and merchants independently collected and settled foreign exchange exceeding RMB 10 billion. Jiang Wei introduced that the linkage work in the province will start in the second half of 2021, and it has fully covered and connected with 13 district-city commercial bureaus and 14 county-level commercial bureaus, and connected with professional markets and industrial belts including Lianyungang Donghai Crystal City, Xuzhou Glass Products There are 6 industrial zones, 10 professional markets and industrial zones, including the Industrial Belt, Yancheng Comprehensive Bonded Zone, Wuxi “Belt and Road” E-commerce Industrial Park, and Nanjing Cross-border E-commerce Industrial Park. "The development of this new form of foreign trade is the trend. For example, Donghai Crystal City, before the epidemic, basically focused on domestic trade. After the epidemic, it expanded its business through cross-border e-commerce live broadcasts. Now we give this market The merchants provide a compliant and convenient export channel, and small merchants can do foreign trade while sitting at home.”


On September 7, Haimen Dieshiqiao Market launched the online foreign exchange collection and settlement platform for procurement and trade, which will provide a full range of high-quality, convenient and efficient security services for various trade entities entering the market. According to reports, since the beginning of this year, the market has encouraged the home textile foreign trade enterprises and trading companies in the cluster area to actively use the market procurement trade method to export home textiles.


According to Zhang Rui, director of the Port Supervision Office of Nanjing Customs, the market for trade goods purchased in the customs area has reached 156 countries and regions around the world. For qualified specialized markets, small and medium-sized enterprises and individual industrial and commercial households in the province, they are supported through market procurement. Platform export, expand export channels, realize the linkage development of Jiangsu market procurement and trade, and enhance the agglomeration and driving effect of Jiangsu market procurement.


Make the export of small, medium and micro enterprises more compliant

"In addition to reducing costs and convenience, the most important point is that under fragmented trade, we have provided a channel for small, medium and micro enterprises to facilitate their exports in compliance with regulations." Jiang Wei said, "On the 'City Caitong' platform Before the advent, small and micro enterprises could only export in general trade, and most of the exported goods were products of small value, and it was common for sellers to export without a ticket."


Export without a ticket has led to the loss of many compliant export data, and it has also made it more difficult for merchants to collect and settle foreign exchange. "What's more serious is the problem of tax fraud by matching bills and foreign exchange. Because there is a market demand for paying for exports, some unscrupulous companies use these export documents to find some foreign exchange bills for export tax rebates. This situation is left to the tax department and supervision. Departments bring a lot of trouble." Jiang Wei said, "With the 'City Caitong' platform, companies can legally settle taxes without any worries. At the same time, it will also reduce logistics costs. Take Donghai Crystal City as an example, In the first half of the year, its logistics cost has been saved by more than 20%. Why? If the merchants find an international logistics company and send one small package one by one, the price is very high. And we integrated this fragmented logistics demand and packaged , the logistics cost reduction brought by this is very obvious.”


On September 13, a batch of polyester embroidered cloth and other apparel fabrics worth US$51,000 from the Chuyuzhi Daily Department Store, Mocheng Street, Changshu City, was also successfully exported to Almaty, Kazakhstan by way of market procurement trade. "I have been in the foreign trade business of garment accessories in Changshu for more than ten years. In the past, I sold goods to foreign trade companies for export. Not only did I have to pay agency fees, but I also had to bear various export risks. Compliance export, with the help of Changshu Customs, I successfully completed the filing and started business." Merchant Chen Jin said, "After receiving this batch of orders from Kazakhstan customers in early August, Changshu Customs told me that it has now expanded new The logistics channel, my goods can be exported by Xuzhou China-Europe train, which is very convenient and saves about 6,000 yuan in logistics costs throughout the process.”


The green customs clearance brought by market procurement trade has also brought great convenience to enterprises. Recently, Nantong Jiesda International Trade Co., Ltd. purchased a batch of 11.5 tons of shoes and socks with a value of nearly 80,000 US dollars from merchants in Haimen International Home Textile City, and declared for export to Chile through market procurement trade. The deployment control needs to complete the on-site inspection. "It was already Friday afternoon when we received the inspection notice. If the inspection cannot be completed on the same day, it will affect the normal catching up of the shipment and delay the export. We need to modify the shipping schedule and rebook the space, which will increase a lot of logistics costs. ” said Weng Shiqi, head of Nantong Jiesda International Trade Co., Ltd. After receiving the inspection instructions, the on-site customs officers of Nantong Customs affiliated to Nanjing Customs opened a green channel for the inspection of goods purchased from the market, and quickly dispatched personnel to the site for inspection. After inspection, they worked overtime to complete the release, and the goods were shipped to Shanghai Yangshan Port as scheduled in the dark. The smooth export has effectively guaranteed the efficient customs clearance of market-purchased goods.


The integration of new formats is an inevitable trend

Haimen International Home Textile City is exploring the integration of three new foreign trade formats: market procurement trade, cross-border e-commerce, and overseas warehouses. "You must know that the new format of market procurement trade was originally tailored for Yiwu. The market procurement trade refers to 'LCL', that is, small batches and multiple varieties. Yiwu market is characterized by small commodity categories. Many, dozens of kinds can be put together in one cabinet. However, in a specialized market like ours, if you put it all together, it is home textile products. Now there are 31 pilots in the country. Unlike Yiwu, most of them are specialized The market. Then, how to develop the market procurement trade method in the specialized market? Then we must take the road of integration of the three, and this road can be replicated in the national specialized market." Deputy Director of the Commerce Bureau of Haimen District, Nantong City Gong Jian said that they are asking a professional team to do the integration of the three, and they are also deploying overseas warehouses. Three will be built by the end of this year, and 10 overseas warehouses will be built in three years.


According to the observation report of Huacheng Import and Export Data, the integration and development of new business forms of the "City Caitong" platform has achieved remarkable results. The platform has opened up cross-border logistics lines such as the China-Korea Express Line, the China-Laos Railway Special Line, and the China-Europe (Central Asia) train, which further expands the cross-border logistics service channels. At the same time, actively explore the integrated development of cross-border e-commerce and market procurement trade, and complete the platform's first ticket market procurement trade + cross-border e-commerce B2B integrated customs transfer declaration. At present, the total number of cross-border e-commerce goods exported by market procurement trade has reached 6.6 billion.


"This kind of integration is inevitable. Cross-border e-commerce business is developing rapidly in various places. It is precisely because cross-border e-commerce has a large number of unpaid exports. The export supervision method related to cross-border e-commerce is not applicable, and it is more suitable for purchasing through the market. Trade is exported. Therefore, the integration of the two is inevitable. Without integration, it will be difficult for cross-border e-commerce to develop in compliance.” Jiang Wei said, “We have been to some places recently. It is necessary to do market procurement trade. I asked them, should cross-border e-commerce do it? Only doing cross-border e-commerce but not market procurement trade is equivalent to restricting the compliant export of a large number of cross-border e-commerce goods without ticket, cross-border e-commerce. There is a risk of loss of export data from overseas e-commerce.”


According to Huacheng Import and Export Data Observation Report, in the "Several Measures for Promoting the Stability and Quality Improvement of Foreign Trade" issued by our province in July this year, it is proposed to promote cross-border e-commerce, market procurement trade, overseas warehouses and other new business formats and new models. Integrated development helps traditional foreign trade enterprises to digitally transform. At the same time, it proposes to refine the linkage export mechanism of the "City Caitong" platform within the province, to drive more small and micro enterprises to use the "City Caitong" platform to export in compliance. It is reported that, since last year, our province has established 12 provincial-level departments, which are based on six new foreign trade formats and models, including cross-border e-commerce, market procurement, comprehensive foreign trade service enterprises, bonded maintenance, offshore trade, and overseas warehouses. The special class for e-commerce development work has established a ledger of difficulties in the development of new foreign trade formats and a system of key contact enterprises in the cross-border e-commerce comprehensive pilot zone, and initially established a policy framework and working mechanism to adapt to the development of new formats and models of foreign trade.


Chen Tao, director of the Provincial Department of Commerce, said that in the next step, more efforts will be made to consolidate the construction of carrier platforms and promote the accelerated development of cross-border e-commerce; more efforts will be made to improve the layout of overseas warehouses and promote the construction of new foreign trade infrastructure; It will improve the level of serving small, medium and micro enterprises; make greater efforts to promote institutional opening up, and create a better "institutional environment" for the development of new forms of business such as new offshore trade and bonded maintenance.


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