Home of Goods What are the impacts on cross-border e-commerce retail imports after the comprehensive lifting of epidemic control measures?

What is the impact of lifting epidemic control measures on cross-border e-commerce retail imports?

In 2022, which is the third year of the global fight against the COVID-19 pandemic, the situation of the pandemic at home and abroad is changing rapidly. Based on comprehensive judgments such as the gradually decreasing pathogenicity of the Omicron variant, the Joint Prevention and Control Mechanism of the State Council released the “Notice on Further Optimizing the Scientific and Accurate Prevention and Control of COVID-19 and Doing a Good Job in Prevention and Control Work” and the “New Ten Measures” for the optimization of epidemic prevention and control policies starting from the second half of 2022. The epidemic control policies are gradually being relaxed, which is positive for the import cross-border e-commerce industry. The future development prospects of cross-border e-commerce imports are also very promising.

Starting from the second half of 2022, epidemic control measures are gradually being relaxed.

On November 10, 2022, according to the “Notice on Further Optimizing the Scientific and Accurate Prevention and Control of COVID-19 and Doing a Good Job in Prevention and Control Work” released by the Joint Prevention and Control Mechanism of the State Council, measures such as canceling the flight suspension mechanism for inbound flights, not expanding the scope of nucleic acid testing, reducing the number of personnel under control, and resuming production and work are mentioned to protect people’s lives and health to the greatest extent and minimize the impact of the epidemic on economic and social development.

Then, on December 7, 2022, the Joint Prevention and Control Mechanism of the State Council issued the “New Ten Measures” for further optimizing and implementing the prevention and control of COVID-19. It is required to accurately implement the new ten measures for epidemic prevention without adding layers of measures. Except for special places, negative nucleic acid test certificates, health codes, and travel codes will no longer be checked, and landing inspections will no longer be carried out, minimizing the impact of the epidemic on economic and social development. Epidemic prevention and control measures are gradually being relaxed, and the normalcy of people’s daily lives, consumption, and travel is gradually returning, stimulating the recovery and development of industries such as import cross-border e-commerce.

Expansion of Cross-border E-commerce Comprehensive Pilot Zones, National Import Cross-border E-commerce Policy Favorable

On November 24, the Chinese government website released the “Reply of the State Council on Agreeing to Establish Comprehensive Pilot Zones for Cross-border E-commerce in 33 Cities and Regions including Langfang”. This will further improve the statistical system for cross-border e-commerce and implement support policies for exempting value-added tax and consumption tax for cross-border e-commerce retail export goods in the comprehensive pilot zones according to regulations.

The country is constantly expanding the number of cross-border e-commerce comprehensive pilot zones. According to the “China Comprehensive Bonded Zone Directory” of China Customs Magazine, from 2015 to the end of November 2022, China has established 200 cross-border e-commerce comprehensive pilot zones, among which Guangdong Province has reached 18 comprehensive bonded zones and bonded logistics centers (type B), including 11 comprehensive bonded zones and 7 bonded logistics centers (type B).

Boosting Market Confidence Greatly, Bonded Imports of Cross-border E-commerce Reach a New High

Looking at the new direction of China’s economic work in 2023 from the Central Political Bureau Meeting, we will adhere to the general tone of seeking progress while maintaining stability, promote overall improvement and reasonable growth in quality and quantity of economic operation, comprehensively deepen reform and opening-up, greatly boost market confidence, promote high-level opening-up to the outside world, attract and make greater use of foreign investment, and focus on expanding domestic demand. Cross-border e-commerce imports are a key policy focus.

According to customs statistics, from January to November 2022, China’s imports amounted to 2.49 trillion US dollars, an increase of 2%; among them, China’s imports and exports through bonded logistics amounted to 4.77 trillion yuan, an increase of 8.4%. Among them, exports were 1.84 trillion yuan, an increase of 12.3%; imports were 2.93 trillion yuan, an increase of 6.1%. With the recovery of the Chinese economy, the upgrading of domestic consumption, and the significant effects of the domestic circulation, the growth rate of cross-border e-commerce imports will increase again.

What is the impact of the epidemic on imported cross-border e-commerce?

1. Boosting consumer confidence: due to three years of epidemic control, the country’s economic growth has been slow, residents’ income has decreased, and consumer confidence has declined. Everyone is looking forward to the epidemic ending soon. The relaxation of epidemic prevention policies has restored the confidence of many people, and the scale of cross-border e-commerce import consumption market will reach a new high.

2. Logistics delivery time and cost

When epidemic control was strict, international logistics was suspended, and domestic express delivery was unable to ship or receive goods due to the epidemic, which had a great impact on the supply chain’s time and cost. This hindered the purchasing desire of cross-border e-commerce import consumers. After the epidemic control was relaxed, international logistics and domestic express delivery resumed normal operations, and the cost of cross-border e-commerce import merchants decreased, resulting in faster delivery of goods to consumers.

3. Cross-border e-commerce model

During the epidemic period, the scattered purchase and sales cross-border model was limited by the shortcomings of international parcel customs clearance inspection. The cross-border e-commerce bonded import model has reliable inventory and performance capabilities, highlighting its advantages, and has become the first choice for consumers to purchase imported goods.

What is the development prospect of cross-border e-commerce import?

1. The policy environment for the cross-border e-commerce industry is favorable, and the industry scale will continue to expand

The policy environment for the cross-border e-commerce industry is favorable, the country is increasing its opening up efforts, strengthening exchanges with overseas countries, and vigorously promoting the development of cross-border e-commerce. The convenience of policies has also accelerated customs clearance speed and guaranteed the smooth customs clearance of cross-border imported goods, which will greatly promote the development of the cross-border e-commerce industry.

2. Internet technology will bring innovation to the cross-border e-commerce industry.

The current pain points faced by cross-border e-commerce in logistics, payment, and product quality control can be solved by traceability, tamper-proofing, timestamp technology, peer-to-peer transmission technology, and smart contract technology. These technologies will help to solve the problem of cross-border logistics monitoring, cross-border payment difficulties, and cross-border e-commerce product quality traceability difficulties, and promote the development of cross-border e-commerce.

3. The full-channel model of imported cross-border e-commerce.

More and more imported cross-border e-commerce are opening offline experience stores, developing channels from online to offline, and opening up a “online + offline” full-channel model. The full-channel model can combine online product information with offline user experience, shorten the distance between users, increase user interaction frequency, promote user purchases, and enhance brand awareness. It is another key point for the development of imported cross-border e-commerce.

4. The capital market is investing more and more in the entire ecosystem of the cross-border e-commerce industry. From the international logistics, imported cross-border e-commerce platforms, marketing and promotion, bonded warehousing and other ecological chains, the industry’s monetization methods are becoming more and more diverse. This will inevitably further promote the development of the cross-border e-commerce import industry.

Now that the epidemic is gradually lifting, under the advantages of the country’s increasing openness to the outside world, favorable policies for imported cross-border e-commerce, and new business forms of imported cross-border e-commerce, the development prospects of the imported cross-border e-commerce industry in 2023 are very broad. Cross-border e-commerce bonded imports will become the trillion-dollar track, and 2023 will usher in the strongest tailwind.

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Huo Zhi Jia – is a comprehensive international logistics company that provides cross-border transportation, customs clearance, inspection, warehousing, and logistics services. We specialize in providing cross-border e-commerce warehousing, bonded warehousing, bonded warehouses, e-commerce warehousing, bonded logistics, third-party warehousing, cross-border e-commerce BBC, import customs clearance, import clearance, import inspection, bonded imports, tax-included import clearance, and import clearance agency.

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