HAIKOU /China/, Nov. 20. /TASS/. South China's Hainan province has for the first time launched a mechanism for declaring goods in cross-border e-commerce, which will allow to promptly deliver goods from suppliers in the PRC to foreign consumers. This was announced by the administration of the Jiangdong New Economic Zone (on northern part of the island), where the new and more efficient customs procedure has already started to operate.
As noted in an official statement published on WeChat, new declarations allow the export of goods bought online through a foreign warehouse, in accordance with the principle of "business to consumer" (B2C). "This means that the Jiangdong zone is the first in Hainan Free Trade Port area to provide control of shipments to foreign markets through two mechanisms. The second, B2B ("business to business"), involves direct inter-corporate interaction," commented local authorities.
The B2C trade contacts with other countries are expected to help foreign consumers receive goods ordered in China faster. According to official calculations, transportation efficiency in terms of time spent will increase by more than 70% and delivery volume will increase by more than 20%.
"In addition, costs will decrease, after-sales service guarantees will increase, and overall transportation efficiency in the e-commerce retail sector will increase," the Jiangdong Economic Zone authorities clarified. "We will continue to create favorable conditions for free trade and cross-border capital flow. "
Through such efforts, Hainan is expected to develop a more reliable supply chain in cooperation with countries participating in the Regional Comprehensive Economic Partnership and those that have joined the Comprehensive and Progressive Agreement for Trans-Pacific Partnership.
Dynamic transformation in international trade
Hainan authorities have been actively upgrading their foreign trade system with the provincial government announcing in January that by 2025 all local customs offices will cease to operate in their current mode. According to Shen Xiaoming, secretary of the Hainan Party Committee, the necessary conditions will be in place by 2023, and the authorities then plan to agree on the secondary details of the new mechanism within two years. In about three years, all residents of the island will be categorized as offshore residents with a special legal status different from all other mainland Chinese citizens.
According to official statistics, Hainan's foreign trade exceeded $ 17.54 billion in January - October, which is up 76.8% yar on year. Exports increased by 42.2% to $4.07 billion and imports increased by 90.9% to $13.47 billion. Among the key trading partners of the southernmost Chinese province are Russia, members of the Association of Southeast Asian Nations, the European Union, the United States, Vietnam and Indonesia.