According to data released by the Changsha Customs on August 17, the volume and price of market procurement trade in Hunan Province have risen this year. In the first seven months, a total of 8,365 exported orders worth 4.47 billion yuan were made through market procurement trade, an increase of 25.3% and 110.7% year-on-year respectively. Among them, exports to African countries expanded nearly 132 times to 1.06 billion yuan, driving the overall trade growth.

Market procurement trade refers to a type of export trade mode that goods purchased in the designated market cluster go through quick customs clearance. It is suitable for the export of small commodities, and small batches, multiple batches and various types of goods. According to statistics, the main export markets of Hunan's market procurement are EU, Africa and other places. The main export products are furniture, lamps, hardware products, and sporting goods. A total of 2,391 suppliers, foreign trade companies and other related enterprises participated in the market procurement business, an increase of 13%.

On August 15, Changsha Haokuo International Trade Co., Ltd. submitted a declaration to the Changsha Customs for the export of sofas, fans and other goods with a value of 660,000 yuan. They were successfully cleared by the Changsha Customs and sent to Kenya. Zhu Huaping, general manager of the company, said that in the first seven months, the company exported more than 32 million yuan of goods to Kenya, Nigeria and other African countries through market procurement, doubling year on year.

According to the Changsha Customs, there are two reasons for the rapid growth of exports through market procurement in Hunan Province. First, Hunan has launched a pilot project for the integration of market procurement and export customs clearance since September 2021. After the enterprise submits a declaration to the local customs authority, the goods do not need to be transported to Changsha, but can be directly delivered to the nearest port. This effectively reduces the logistics cost. In the first seven months of this year, a total of 4,296 bills of clearance worth 2.7 billion yuan were handled through the integrated mode, accounting for 51.3% and 60.4% of the total respectively. Second, in this April, with the approval of the General Administration of Customs, the export of market-purchased pre-packaged food was piloted in Hunan, expanding the export scope of Gaoqiao Grand Market in market procurement.

Hunan is launching a pilot program of "overseas warehouse + market procurement + risk compensation". The province has leveraged the policy of market procurement trade in Gaoqiao Grand Market, set up overseas warehouses in wholesale gathering areas of African countries, and promoted Hunan-made products to African countries.

This article is from the Hunan Provincial Government www.enghunan.gov.cn.

Translator: Xiao Juan

Chinese source: hunan.gov.cn