GAC Announces Key Reforms to Streamline Cross-Border E-Commerce Exports
China's General Administration of Customs (GAC) has introduced a series of policy reforms aimed at bolstering the country's burgeoning cross-border e-commerce sector, which recorded an 11.5% year-on-year increase to 1.88 trillion yuan ($259.65 billion) in the first three quarters of 2024.
These measures, set to take effect on December 15, 2024, are designed to reduce administrative burdens, enhance supply chain efficiency.
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Highlights of the New Measures
ONE
The reforms reflect a proactive approach to addressing challenges in the rapidly evolving cross-border e-commerce landscape. The key measures include:
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Removal of Overseas Warehouse Filing Requirements
Enterprises operating cross-border e-commerce overseas warehouses will no longer need to file their business models with customs, a requirement previously mandated since 2020. This change significantly reduces administrative complexities, while exporters remain responsible for ensuring data accuracy in customs declarations.
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Simplification of Export Documentation
Cross-border e-commerce entities can now submit trade and logistics information digitally via the "Single Window" or cross-border e-commerce clearance service platforms, eliminating the need for electronic payment proof. This streamlining facilitates faster clearance and enhances operational efficiency for businesses.
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Expansion of Pre-Inspection Trials for Consolidated Shipments
Pilots across 12 key customs districts—including Shanghai, Hangzhou, and Guangzhou—will implement a "pre-inspection before shipment" model. Exporters can consolidate shipments based on real-time demand after customs inspection, offering greater flexibility and cost savings for bulk cargo handling. -
Cross-Customs District Return Supervision
A pilot program across 20 customs districts enables businesses to handle returns across districts for cross-border retail exports. This initiative addresses a long-standing challenge for exporters, particularly in the 9610 retail export model, ensuring smoother reverse logistics.
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Driving Cross-Border E-Commerce Growth
TWO
These regulatory optimizations come amid China's broader push to stabilize and expand its foreign trade. By October 2024, China's total goods trade exceeded 36 trillion yuan ($5.07 trillion), reflecting a 5.2% growth in yuan terms and a 3.7% increase in dollar terms.
Cross-border e-commerce has played a pivotal role in this growth, particularly in high-demand markets such as ASEAN, where bilateral trade surged by 10.5% year-on-year to 3.36 trillion yuan. The GAC’s new measures aim to further enhance China's competitiveness by enabling businesses to scale operations, reduce costs, and adapt to fluctuating market conditions.
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Policy Backing and Future Implications
THREE
The reforms align with the Ministry of Commerce's recent initiatives, which include supporting the development of smart logistics platforms and establishing cross-border e-commerce service hubs. These measures aim to integrate digital solutions, optimize global supply chains, and provide comprehensive support for exporters navigating complex international markets.
By the end of 2024's first half, China boasted over 1,000 cross-border e-commerce industrial parks and 1,800 overseas warehouses. These infrastructure investments underscore the sector's robust foundation and growth potential, providing a launchpad for Chinese enterprises to expand their global footprint.
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