A look at China’s border trade policy

A village sits at the boundary between the jurisdictions of China and Russia in Inner Mongolia autonomous region. [Photo/VCG]

The Chinese government has always given development in international border areas top priority. Many preferential policies have been put forward to expand the scale of opening-up in those areas. According to analysis of border trade policies by the General Administration of Customs of People’s Republic of China (GACC), China’s border trade can be divided into two forms: border trade among residents living in border areas, and minor cross-border trade.

Trade among border residents refers to the flow of goods in a designated zone within 20 kilometers of the boundary line approved by the government. The trading amount and quantity are prescribed within a scale.

Border residents must have a valid trading certificate. The certificate cannot be transferred or leased out. Items traded in the designated zone should be declared to Customs. 

According to the regulations, trading items worth less than 8,000 yuan ($1,167) per person per day are exempt from duties and taxes.

Tips: The duty-free preferential policy is only applicable to articles for daily use (excluding natural rubber, wood, pesticides, fertilizers and crop seeds). Items such as tobacco, wine, cosmetics, rice and mechanical and electrical products are not on the list.

Minor cross-border trade means trading activities carried out among firms in border areas through national-designated ports. The firms should be granted the rights of border trade by the government after the approval of the Ministry of Foreign Trade and Economic Cooperation.