China Suspends 'Market Procurement Trade' Covid-19 Exports
Liao Shumin
DATE:  May 11 2020
/ SOURCE:  Yicai
China Suspends 'Market Procurement Trade' Covid-19 Exports China Suspends 'Market Procurement Trade' Covid-19 Exports

(Yicai Global) May 11 -- China imposed a nationwide ban yesterday on exports of testing kits for SARS-CoV-2, medical masks, medial protective clothing, ventilators and infrared thermometers purchased via the so-called 'market procurement trade' mechanism.

This mode, which features quick Customs clearance, convenience and value-added tax exemption, is one in which eligible business operators buy goods with a single declaration value of up to USD150,000 in market cluster areas recognized by commerce authorities and other agencies and undergo export goods' clearance procedures at the point of purchase.

The General Administration of Customs recently published many instances of exports of substandard epidemic prevention material and products. It exposed 16 firms whose exports of epidemic prevention material are substandard on May 9. As many as 1.86 million-plus unqualifying face masks may be involved.

Exports of these types of medical supplies are still permitted via 'general trade,' though exporting them via the ‘market procurement trade' is now banned, the commerce bureau of the massive small commodity market of Yiwu has advised. Yiwu, a prefecture-level city in eastern Zhejiang province, was the first place in China to pilot this trade model. The country expanded the trial to trading centers in Fujian, Hunan, Guangdong and Sichuan in 2018.

Medical device product registration certificates approved by drug regulators must be furnished based on China's qualification standard, and producers must appear on the China Chamber of Commerce’s Import and Export of Medicines and Health Products-published list of manufacturing firms that have secured overseas standard attestation or registration if these exports are based on an overseas standard, with submission of the declaration of medical materials needed in both cases.

Yiwu, population 1.2 million, is famous for its small commodity trade and vibrant market -- the world’ largest -- and as a regional tourist destination. The city has direct rail links for its exports that stretch as far as London.

Editor: Ben Armour

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Keywords:   PPE,China,Export,Covid-19