To implement the State Council’s decision to further expand the cross-border e-commerce retail import pilots, approved by the State Council, on January 17, 2020, six ministries and commissions including the Ministry of Commerce, the National Development and Reform Commission, the Ministry of Finance, the General Administration of Customs, the State Taxation Administration, and the State Administration for Market Regulation jointly printed and issued the Circular on Expanding the Cross-border E-commerce Retail Import Pilots (the Ministry of Commerce, the Ministry of Finance, and the National Development and Reform Commission, [2020] No. 15). 50 cities (regions) such as Shijiazhuang and the entire island of Hainan are included as the cross-border e-commerce retail import pilots. Since the date of printing and issuing the Circular, relevant cities and regions could follow the requirements of the Circular on Improving Cross-border E-commerce Retail Import Supervision (the Ministry of Commerce, the Ministry of Finance, and the National Development and Reform Commission, [2018] No. 486) jointly printed and issued by six ministries and commissions in 2018 to launch bonded import for online shopping (Customs Supervision Model Code 1210).

Since January 1, 2019, the cross-border e-commerce retail import supervision policies have been implemented in 37 pilot cities including Beijing. Over more than a year, the Ministry of Commerce, together with relevant ministries, has timely carried out policy interpretation, closely tracked policy implementation, actively coordinated and solved new situations and problems arising in the operation, and studied and improved policies and measures. All pilot localities have earnestly assumed their primary responsibilities and smoothly launched the pilot work. Cross-border e-commerce enterprises have further standardized operations, strengthened the prevention and control of quality and safety risks, as well as the protection of the rights and interests of consumers. With the joint efforts of all sides, cross-border e-commerce retail imports achieved steady and healthy development. According to customs statistics, in 2019, China's cross-border e-commerce retail imports totaled 91.81 billion yuan, with an increase of 16.9% year on year. It has been playing a positive role in enriching domestic product supply, promoting the development of new forms and models of business, attracting consumption to flow back to China, and better meeting residents' needs.

On the basis of fully summing up and assessing the preliminary pilot work, according to the Several Opinions of the State Council on Promoting the High-level Opening up and High-Quality Development of Comprehensive Bonded Zones (the State Council [2019] No. 3), the Opinions of the General Office of the State Council on Accelerating the Development of Circulation and Promoting Commercial Consumption (the General Office of State Council [2019] No. 42), and the Reply of the State Council on Consenting to Establishing Cross-border E-commerce Comprehensive Pilot Zones in 24 Cities Including Shijiazhuang (the State Council [2019] No. 137) , the scope of pilots was further expanded this time. In terms of the selection of the pilot areas, the following factors are mainly considered. First, the development needs of the pilot free trade zones are coordinated and considered, and the areas where the pilot free trade zones meet the customs supervision conditions are included. Second, combined with the requirements for the opening up and development of the comprehensive bonded area, some national logistics hub cities with comprehensive bonded zones are included. Third, to actively support the development of cross-border e-commerce comprehensive pilot zones, the cities with newly established cross-border e-commerce comprehensive pilot zones are included. Fourth, to actively give play to the role of cross-border e-commerce in expanding consumption and supporting the opening-up and development of relevant regions, cities in which the national poverty-stricken counties meet the customs supervision conditions are included. After the expansion of pilots, the scope of cross-border e-commerce retail import pilots will be extended from 37 cities to the entire island of Hainan and 86 other cities (regions), covering 31 provinces, autonomous regions and municipalities.

Next, in accordance with the decisions and arrangements of the CPC Central Committee and the State Council, the Ministry of Commerce will continue to work with relevant departments to guide pilot areas to implement policies, establish and improve working mechanism, earnestly fulfill their primary responsibilities, and better promote the development of new forms and models of business.

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