Zhanjiang has become a pilot city for cross-border e-commerce retail imports, according to a notice issued on March 18 by six agencies, including the Ministry of Commerce and the National Development and Reform Commission.

According to the notice, the piloting of cross-border e-commerce retail imports will be expanded to all cities and regions that host pilot free trade zones (FTZs), comprehensive cross-border e-commerce pilot zones, comprehensive bonded zones, import trade promotion innovation demonstration zones, or bonded logistics centers.

Once verified for regulatory requirements, related cities and regions will be approved to conduct the "online shopping bonded import model" (customs supervision code 1210).

Under the 1210 business model, goods are shipped to special supervision areas or logistics centers by sea, and then delivered to domestic consumers after they place an order.

Compared with ordinary goods import, it has a great tax revenue advantages. It is free of customs duties within the annual transaction limit of individuals, and the value-added and consumption taxes on imports are temporarily levied at 70 percent of the statutory tax payable.

Zhanjiang has the right conditions to develop its 1210 business. In May 2020, the city received approval from the State Council to establish a comprehensive pilot zone for cross-border e-commerce.

The cross-border e-commerce "9610" export business was launched in the city in August 2020, and the "9710" cross-border e-commerce business-to-business (B2B) export business was started in September 2020. The "1239" cross-border e-commerce online shopping bonded import business began in March.

In addition, the Zhanjiang Bonded Logistics Center (Type B) has been equipped with an information system, a special inspection site, and supervisory facilities like X-ray machines and video monitoring. It also features divided functional areas like a warehouse and tally area, a packaging area, an inspection waiting area, an inspection area and a distribution area that are in accordance with the requirements of customs supervision.