1039 Market Procurement Trade Export Guide

Customs supervision mode code 1039, full name "Market Procurement Trade", is a facilitated trade mode designed specifically for "multi-category, multi-batch, small-volume" foreign trade transactions in specialized markets. It was first piloted in Yiwu, Zhejiang in 2013, and after customs added it as a supervision mode in 2014, it was gradually promoted to pilot markets nationwide.

Market procurement trade combines procurement and cargo consolidation in specialized markets with customs clearance and tax facilitation policies, and is an important channel for small commodity exports. This article explains in detail its applicable conditions, business processes, and policy points.

I. Applicable Conditions for 1039 Market Procurement Trade

Exporting under mode 1039 requires meeting the following conditions at the same time:

• Procurement within pilot markets: Goods must be procured within the cluster area of a pilot market for market procurement trade recognized by the state;
• Within single declaration value limit: The value of goods on a single customs declaration form shall not exceed USD 150,000 (inclusive);
• Handled by compliant entities: Export customs clearance procedures shall be handled by a registered market procurement trade operator (suppliers, buyers, foreign trade companies, and other entities must be registered on the market procurement trade networked information platform);
• Customs clearance at designated ports: Generally handled through designated ports located where the pilot market is located.

Note that goods prohibited or restricted from export by the state are not eligible for the market procurement trade mode.

II. Core Policy Advantages of 1039

The policy design of market procurement trade revolves around "fast customs clearance, simplified taxation, and convenient foreign exchange collection":

• Classification-based customs clearance: Goods can be declared under simplified classification by major commodity category (using "chapter" as the unit), without the need for detailed SKU-by-SKU classification, greatly reducing the declaration complexity of multi-category small commodities;
• Exemption without refund: Export goods under market procurement trade are subject to VAT exemption policies as prescribed ("exemption without refund"), meaning they can be exported VAT-free without input invoices, and accordingly no export tax refund is processed;
• Convenient foreign exchange collection and settlement: Eligible market procurement trade entities are allowed to collect and settle foreign exchange in their own names. Foreign trade companies, sole proprietorships, and other entities may all collect foreign exchange according to regulations, solving the compliance issue of foreign exchange collection for small and medium-sized merchants.

These arrangements specifically address the practical difficulties in small commodity operations of "no invoices for procurement, complex variety, and dispersed entities."

III. 1039 Customs Declaration Business Process

The typical operating process of market procurement trade is as follows:

1. Entity registration: Suppliers, buyers, and entrusted market procurement trade foreign trade companies complete registration on the local market procurement trade networked information platform;
2. Procurement and cargo consolidation in the market: Overseas buyers (or their agents) procure goods in the pilot market, and procurement information is entered into the networked platform to form transaction and packing information;
3. Booking and container loading: The foreign trade company arranges LCL or FCL cargo consolidation, booking, and trucking;
4. Networked declaration: Generate customs declaration data on the networked information platform, and entrust a customs broker to declare the export customs declaration form to customs (supervision mode 1039);
5. Inspection and release: Customs reviews documents and, if necessary, inspects the goods before release, and the goods are loaded and shipped;
6. Foreign exchange collection and settlement: The foreign trade company collects foreign exchange payment according to regulations and processes settlement, completing the trade closed loop.

Because declaration information is entered in advance during the market procurement and cargo consolidation stages, the actual customs clearance process is highly efficient, and mature markets can achieve routine rapid release.

IV. What Materials Are Required for 1039 Customs Declaration

V. Which Enterprises and Goods Are Suitable for 1039

• Small commodities such as daily necessities, handicrafts, accessories, hardware, and toys procured in pilot markets such as Yiwu;
• Goods shipped in LCL with multiple varieties and batches, for which it is difficult to obtain input invoices category by category;
• Businesses of small and medium-sized foreign trade merchants and sole proprietorships that export through compliant channels and collect foreign exchange normally.

In operations, it is recommended to choose a registered and well-operated market procurement trade foreign trade company to act as agent for cargo consolidation and declaration, ensuring that procurement, packing, and foreign exchange collection data are traceable and complete on the networked platform.

VI. Differences Between 1039 and General Trade 0110

Conclusion

1039 market procurement trade provides a complete channel for small commodity exports from specialized markets, including classification-based customs clearance, tax-free export, and convenient foreign exchange collection. Understanding the prerequisites such as pilot markets, registered entities, and single declaration limits will enable you to make good use of this facilitation mode.

Bofeng Logistics can provide one-stop services including ocean freight, air freight, customs declaration and inspection, trucking, and warehousing for foreign trade enterprises in the Pearl River Delta. For details, see Customs Declaration and Inspection Services and International Freight Forwarding. You can also refer to Overview of Supervision Modes 9610/9810/0110/1039.

Business consultation: Phone / WhatsApp 130-7567-8958, Email: info@zhbfwl.com.