China’s State Council approves 24 new Cross-Border E-Commerce Zones

China’s State Council issued, on 24 December 2019, an announcement of the State Taxation Administration [2019] No. 36 approving the establishment of 24 pilot cross-border e-commerce zones.

China had previously designated a total of 35 cities for cross-border e-commerce. The new additions will extend the pilot programme to most of China’s largest cities – Shijiazhuang, Taiyuan, Chifeng, Fushun, Hunchun, Suifenhe, Xuzhou, Nantong, Wenzhou, Shaoxing, Wuhu, Fuzhou, Quanzhou, Ganzhou, Jinan, Yantai, Luoyang, Huangshi, Yueyang, Shantong, Foshan, Luzhou, Haidong and Yinchuan.

According to the approval, these new pilot zones should replicate and promote successful practices adopted by the existing three batches of e-commerce pilot zones, and further achieve the following:

• Introduce exemptions on value-added tax and consumption tax for retail and exported goods;
• Actively explore business opportunities and innovate;Promote industrial transformation and its upgrading;
• Brand building;
• Promote international trade liberalisation;
• Facilitation and industry innovation;
• Promote the healthy development of cross-border e-commerce throughout the country;
• Explore new experiences and new practices; and
• Promote a high-quality trade development.

The document was a preliminary announcement setting out general plans for how the trial zones would be constructed and replicated across the country, with guidance for the respective provincial governments government to follow.