GACC Announcement No.54, 2014 on Market Purchase Trade Supervision Measures & Mode

To regulate the market purchasing trade undertaken in Yiwu City, Zhejiang Province, the GACC hereby announces the matters concerning China Customs supervision over the market purchasing trade mode as follow:

1. The market purchasing trade mode means that a qualified operator purchases goods valued at USD 150,000 or less on one declaration form from a markets-clustered place, which is approved by state commercial authorities, and then undertakes customs clearance for export of the goods at the purchase place.

The following goods shall not be involved in the market purchasing trade:

(1) the goods banned or restricted by state in export;
(2) the goods not purchased from a state-approved markets-clustered place;
(3) the goods not confirmed by market-purchasing approval system;
(4) the goods settled by cash;
(5) the goods identified as inapplicable by trade regulatory authority

2. Local governments shall publicize state-approved market-clustered places and their merchandise malls, specialized markets and specialized streets and register them with the customs.

3. The foreign-trade operators engaging in market purchasing trade shall be registered with local commercial authorities and customs authorities.

4. The foreign-trade operators shall be responsible for the truth and legality of export goods and record of the export goods into the market purchasing approval system. The approval system-confirmed export information shall be shared with the customs through a market purchasing trade management system for the customs to supervise the export goods.

5. As regards the export goods through market purchasing trade, their declaration form's "consignor" column shall be filled with the name of the trade operator, and the "remark" column shall be filled with the purchaser information (name, nationality, ID or passport number).
Upon the declaration, the operators shall submit complete packing lists, original trade documents, purchaser ID copy in paper or electronic version.

6. Where the commodity list attached to one declaration form contains more than 10 commodities, the declaration may be simplified in the following manners:

(1) Regarding the compliant commodities, they may be consolidated as per chapters in China Import & Export Tariffs;
(2) Each chapter uses the HS Code of the value-biggest commodity as the consolidated HS Code, the value and quantity also consolidated accordingly.

The simplified declaration may not be applicable to the commodities under any of the following circumstances:

(1) Being subject to export inspection certificate;
(2) Being subject to export duties;
(3) Being otherwise regulated by the customs

7. The export goods through market purchasing trade shall go through export formalities within customs supervision venues; where any suspected smuggling or violation is found, the venue operators shall initiatively report to the customs.

8. As regards the exports by transfer across customs, the market purchasing trade operators shall undertake the customs-transfer formalities at purchase places and the transfer-cancel formalities at exit places.

9. As regards the exports by transfer across customs, the transportation shall be undertaken by the carriers that are registered with the customs; the customs at exit places shall be responsible for in-transit supervision over the market purchasing traded goods.

10. The customs at purchase places herein refer to the customs in charge of local approved merchandize malls, specialized markets and merchandize streets that constitute local markets-clustered zones.

11. Added customs supervision code "1039" for "market purchasing trade" is restricted to the goods purchased at the markets-clustered zone of Yiwu City (comprising Yiwu International Petty Commodities Mall, various specialized markets and merchandize streets).

This Announcement shall enter into force after the acceptance of the market purchasing trade approval system and comprehensive management system and after the issue of a catalog of export goods inapplicable to market purchasing trade. Hangzhou Customs shall be responsible for formulating the implementation rules of these customs supervision measures.

Six months after the formal implementation of the market purchasing (1039) supervision mode, the implementation regions shall stop using the "tourist shopping" (0139) supervision mode.

The export goods through market purchasing trade shall be subject to customs statistics.



The General Administration of Customs of China (GACC)

July 1, 2014