Market Procurement Trade is a unique foreign trade method in China. It refers to purchasing goods within nationally recognized market clusters (such as the Yiwu Small Commodity Market), where qualified operators complete export customs clearance procedures at the customs of the procurement location and enjoy a value-added tax exemption policy. It mainly applies to exports of goods with a single shipment value not exceeding USD 150,000, featuring multiple varieties and small batches. Usage scenarios: small and medium-sized enterprises and individual businesses export small commodities through market procurement trade, which simplifies declaration and provides efficient customs clearance. Precautions: procurement must be within pilot markets, operators must be registered, goods must comply with the negative list, and must not involve infringement or counterfeit or inferior products. Differences from other terms: general trade requires full customs declaration and tax refund, while market procurement trade is exempt from value-added tax and does not provide tax refund; compared with cross-border e-commerce B2B exports, market procurement trade focuses more on offline market procurement and has no online transaction requirement.
📝 Examples
1. A merchant in Yiwu exported a batch of daily necessities worth USD 80,000 to Africa through market procurement trade and completed customs clearance at Yiwu Customs. (Note: This demonstrates a typical application of market procurement trade, with a single shipment value below USD 150,000, procured and cleared in a pilot market.)
2. Because market procurement trade is exempt from value-added tax, the enterprise does not need to apply for an export tax refund, reducing the tax cost of exporting small commodities. (Note: This highlights the tax advantage of market procurement trade, namely VAT exemption and no tax refund, making it suitable for small-batch exports.)
💡 Foreign Trade Tips
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