Page 9 - THE SOUTH CHINA BUSINESS JOURNAL
P. 9
RCEP is also projected to boost CBEC between goods through this mode reached RMB 360 million
China, East Asia, and South East Asia. Chapter 12 of (US$55.1 million), which reduced the operation
the agreement specifically outlines clauses related cost of collection and sorting worth RMB 30 million
to e-commerce. The regulations on e-commerce, (US$4.56 million) for enterprises.
including the facilitation of paperless trade, Secondly, Guangzhou pioneered the “air-rail
e-authentication, e-signatures, and the personal link” mode in CBEC export. The export goods are
information protection for e-commerce users and transferred from Guangzhou Baiyun International
online consumers, will provide a more conducive Airport to Dalang Railway Station and sent to
trade environment for CBEC. Europe via China-Europe Express, which can
The RCEP is expected to have a far-reaching impact shorten the logistics time by seven days (around 30
on regional trade facilitation and international percent) and reduce the cost of port pick-up and
economic integration over the next decades. operation fees compared with sea freight.
Why Guangzhou? Third, Guangzhou innovated the “pre-check”
To help the local business community benefit from function of individual quota of CBEC. Currently,
RCEP when it enters into force, many cities in China the maximum value of each CBEC transaction
have been working actively with various business is up to RMB 5,000 (US$765.5), and the annual
associations and chambers to organize outreach total CBEC purchase for each person is up to RMB
sessions and webinars. However, we asked why is 26,000 (US$3980.6). Within the limit, the purchase
Guangzhou the first city to come out with special enjoys preferential tax treatments. Beyond the
policies in seizing the e-commerce opportunities limits, the purchase might be taxed in full as general
under RCEP? imports. The pre-check function helped enterprises
Guangzhou, the capital city of Guangdong province, avoid goods return due to insufficient quota of the
is an important political, economic, industrial, and subscriber and reduced the transportation cost of
cultural center in the South China region. North enterprises. This function was highly recognized by
of Hong Kong, Macau, and the South China Sea, Amazon, Tmall International, JD Global, and other
Guangzhou’s location in the Pearl River Delta has e-commerce enterprises.
long secured the city’s position as the southern Fourth, Guangzhou built China’s largest local
gate of mainland China. As the origin of the ancient public service platform specifically for CBEC. This
Chinese Maritime Silk Road, it was the oldest platform includes 26 functional modules covering
foreign trading port in mainland China and the only export return facilitation, “tax-free without tickets”
one that has never been closed. enterprises application, verification collection of
Guangzhou also enjoys Guangdong Province’s corporate income tax, etc. By far, this platform has
industrial cluster advantages — Guangdong has a serviced 2,738 enterprises with daily transactions
complete range of industries, including electronic over 800,000 orders. The total customers it
information, electrical machinery, petrochemical, serviced has passed 300 million.
textile and clothing, food and beverage, building Fifth, Guangzhou keeps promoting “CBEC+
materials and other industries with obvious live streaming” to facilitate the high-quality
advantages nationwide. development of the foreign trade.
Moreover, since it was approved as a With the Several Measures designed to further
Comprehensive Pilot Area for CBEC in 2016, ease cross-border e-commerce operations within
Guangzhou has led the promotion of CBEC. the RCEP trading arrangement, Guangzhou can be
Firstly, Guangzhou created the “co-sourcing” mode expected to play a leading role in the sector.
for CEBC export return. It supports enterprises to
move overseas warehouses back to Nansha Bonded
Port Area, store the returned goods as bonded
goods to solve the problem of “difficulty in returning
goods” of CBEC. In 2020, the total value of returned
SOUTH CHINA BUSINESS JOURNAL 6
China, East Asia, and South East Asia. Chapter 12 of (US$55.1 million), which reduced the operation
the agreement specifically outlines clauses related cost of collection and sorting worth RMB 30 million
to e-commerce. The regulations on e-commerce, (US$4.56 million) for enterprises.
including the facilitation of paperless trade, Secondly, Guangzhou pioneered the “air-rail
e-authentication, e-signatures, and the personal link” mode in CBEC export. The export goods are
information protection for e-commerce users and transferred from Guangzhou Baiyun International
online consumers, will provide a more conducive Airport to Dalang Railway Station and sent to
trade environment for CBEC. Europe via China-Europe Express, which can
The RCEP is expected to have a far-reaching impact shorten the logistics time by seven days (around 30
on regional trade facilitation and international percent) and reduce the cost of port pick-up and
economic integration over the next decades. operation fees compared with sea freight.
Why Guangzhou? Third, Guangzhou innovated the “pre-check”
To help the local business community benefit from function of individual quota of CBEC. Currently,
RCEP when it enters into force, many cities in China the maximum value of each CBEC transaction
have been working actively with various business is up to RMB 5,000 (US$765.5), and the annual
associations and chambers to organize outreach total CBEC purchase for each person is up to RMB
sessions and webinars. However, we asked why is 26,000 (US$3980.6). Within the limit, the purchase
Guangzhou the first city to come out with special enjoys preferential tax treatments. Beyond the
policies in seizing the e-commerce opportunities limits, the purchase might be taxed in full as general
under RCEP? imports. The pre-check function helped enterprises
Guangzhou, the capital city of Guangdong province, avoid goods return due to insufficient quota of the
is an important political, economic, industrial, and subscriber and reduced the transportation cost of
cultural center in the South China region. North enterprises. This function was highly recognized by
of Hong Kong, Macau, and the South China Sea, Amazon, Tmall International, JD Global, and other
Guangzhou’s location in the Pearl River Delta has e-commerce enterprises.
long secured the city’s position as the southern Fourth, Guangzhou built China’s largest local
gate of mainland China. As the origin of the ancient public service platform specifically for CBEC. This
Chinese Maritime Silk Road, it was the oldest platform includes 26 functional modules covering
foreign trading port in mainland China and the only export return facilitation, “tax-free without tickets”
one that has never been closed. enterprises application, verification collection of
Guangzhou also enjoys Guangdong Province’s corporate income tax, etc. By far, this platform has
industrial cluster advantages — Guangdong has a serviced 2,738 enterprises with daily transactions
complete range of industries, including electronic over 800,000 orders. The total customers it
information, electrical machinery, petrochemical, serviced has passed 300 million.
textile and clothing, food and beverage, building Fifth, Guangzhou keeps promoting “CBEC+
materials and other industries with obvious live streaming” to facilitate the high-quality
advantages nationwide. development of the foreign trade.
Moreover, since it was approved as a With the Several Measures designed to further
Comprehensive Pilot Area for CBEC in 2016, ease cross-border e-commerce operations within
Guangzhou has led the promotion of CBEC. the RCEP trading arrangement, Guangzhou can be
Firstly, Guangzhou created the “co-sourcing” mode expected to play a leading role in the sector.
for CEBC export return. It supports enterprises to
move overseas warehouses back to Nansha Bonded
Port Area, store the returned goods as bonded
goods to solve the problem of “difficulty in returning
goods” of CBEC. In 2020, the total value of returned
SOUTH CHINA BUSINESS JOURNAL 6
