Reply of the State Council on the Approval to Setup Cross-Border E-Commerce Comprehensive Pilot Zones in 46 Cities Including Xiongan New District (Mainland China)

Joyce Wen

On April 27, 2020, the State Council issued its Reply on the Approval to Setup Cross-Border E-Commerce Comprehensive Pilot Zones in 46 Cities Including Xiongan New District (the “Reply”).  Building off the 59 established cross-border e-commerce comprehensive pilot zones, the Reply sets up 46 additional pilot zones to give greater play to the unique advantages of cross-border e-commerce and help overcome difficulties in foreign trade through new business models.

The new cross-border e-commerce comprehensive pilot zones established under the Reply consist of 46 cities and regions, including Xiongan New District, Datong, Manzhouli, Yingkou, Panjin, Jilin, Heihe, Changzhou, Lianyungang, Huaian, Yancheng, Suqian, Huzhou, Jiaxing, Quzhou, Taizhou, Lishui, Anqing, Zhangzhou, Putian, Longyan, Jiujiang, Dongying, Weifang, Linyi, Nanyang, Yichang, Xiangtan, Chenzhou, Meizhou, Huizhou, Zhongshan, Jiangmen, Zhanjiang, Maoming, Zhaoqing, Chongzuo, Sanya, Deyang, Mianyang, Zunyi, Dehong Dai and Jingpo Autonomous Prefecture, Yanan, Tianshui, Xining and Urumqi.

The Reply stated that the development of these zones shall follow the principles of encouraging innovation, tolerance and prudence.  It shall adhere to problem orientation, strengthen coordination and cooperation, focus on exploring innovation in the technical standards, business processes, regulatory models and information-based development in relation to business-to-business (B2B) models in e-commerce, and devise more support initiatives to foster a good environment, which will better promote and regulate the development and growth of cross-border e-commerce industry.

The Reply made it clear that the cross-border e-commerce statistics system needs further improvement.  In addition, the exemption of value-added taxes and consumption taxes on cross-border e-commerce retail goods exported from the zones, the collection of assessed enterprise income tax and other similar support policies shall be implemented.  There will also need to be further research as to whether to include eligible cities in which these pilot zones are located under the retail e-commerce import pilot to support the construction and sharing of overseas warehouses among enterprises.