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Cross-border E-commerce has become a "new business card" for Ningbo Port
2018-11-18Text Size: A A A

With the coming of "Double Eleven", Ningbo Free Trade Zone, Cixi Export Processing Zone, Meishan Bonded Port Area and Lishe Bonded Logistics Center are brightly lit in the early hours of the morning. The mega-cross-border supervision warehouse is full of cross-border goods from all over the world. Tens of thousands of staff are sorting, packing, labelling, and scanning in an orderly manner. Thousands of pickups have been waiting outside the warehouse.

According to Ningbo Port Anti-smuggling Office (Ningbo Cross-border E-Commerce Comprehensive Pilot Office), during 2018 "Double Eleven" shopping festival, cross-border E-commerce imports showed a blowout growth. From 0:00 to 4:00 on November 11, Ningbo Customs received a total of 7.73 million E-commerce import orders, amounting to 1.448 billion yuan, a year-on-year increase of 24% and 30% respectively, ranking first again in the country. According to customs data, Ningbo “Double Eleven” orders accounts for a quarter of the country’s total orders.

 

Seize every minute for "Double Eleven"

As the main battlefield at the end of the year, the orders of Ningbo Bonded Zone during “Double Eleven” reached 5,468,200, with a total value of 1.069 billion yuan, accounting for 74% of the city. The orders were mainly from Tmall International, Netease Koala, Jingdong, Xiaohongshu and other first and second-tier large-scale E-commerce platforms. The business scale has nearly doubled compared with 2017, and the number of workers during the whole activity has increased to 12,000.

In response to the variety of activities, large quantities, mixed specifications, and concentrated time in the zone, Ningbo Bonded Zone Management Committee organized several regional work coordination meetings as early as October to guarantee emergency measures such as road traffic, social security, safe production, and commodities supervision and food hygiene have been in place during the event. These measures have become a strong support for this year-end exam.

The performance of the “Rising Star” Hangzhou Bay New Zone in 2018 is   as good as before. The daily declaration volume was 2.04 million, and the value of the goods was 330 million yuan, accounting for 23% of the city. The New Zone Management Committee has already established a support service group, and units like business, public security, food supervision, traffic police, fire protection, and power supply were all mobilized to ensure the success of the "Double Eleven" activities.

In order to prepare for the "Double Eleven", Ningbo Customs has added front-line inspectors, checking the monitoring, inspecting the warehouse, and unpacking inspection. Customs in the bonded area increased the temporary warehouse by 42,000 square meters and added 45 release lines to improve the warehouse storage capacity and operation efficiency. Meishan Customs streamlined the application for the cross-border transportation vehicle registration of logistics enterprises on the “Double Eleven” day, fully meeting the cargo demand.

In the early stage of “Double Eleven”, Ningbo Customs visited E-commerce enterprises and logistics companies several times, and grasped the information of the expected business volume, commodity type, warehousing logistics and customs clearance requirements in advance, and formulated detailed implementation plans. Behind the "Double Eleven" digital myth, customs, as an indispensable regulatory link, is supporting this global shopping spree with the "white plus black" model.

In fact, far more than during the “Double Eleven” period, the overall transaction volume and transaction volume of cross-border imports in the city have always stayed ahead since it jumped to the top in the country in 2018. As of November 11, the city has realized a total of 76.07 million E-commerce import orders, with a value of 13 billion yuan, all of which have more than doubled year-on-year. It has become the first city in the country to break through the 10 billion yuan mark. European cosmetics, Australian health products, dairy products from Central and Eastern Europe, and electronic products from the United States have entered thousands of households through cross-border imports. Consumers can buy all over the world in Ningbo without leaving their homes now.

 

Buy from the world and sell to the world.

The superior port, the developed collection and distribution system and the affluent consumer groups in the Yangtze River Delta region are the sunshine, rain and soil for cultivating the cross-border import industry in Ningbo. Since August 2012, Ningbo has become one of the first five pilot cities for cross-border trade E-commerce services in China. The city port office has taken the lead in cultivating a "Ningbo mode" of cross-border E-commerce online shopping based on bonded import featuring “government-led, platform services, E-commerce operations, and departmental supervision”.

After 6 years’ development, Ningbo's comprehensive pilot area has a total cross-border import warehouse of 800,000 square meters, which is far ahead in the country. The number of commodity records exceeds 430,000, and the cumulative number of consumers is 42.56 million, covering 32 provinces across the country. Netease Koala, Xiaohongshu, Tmall International, Jingdong Global Purchase and other domestic cross-border import leading enterprises have all settled in Ningbo, and also cultivated a large number of representative local cross-border import companies such as Taotaoyang, Zhengzheng E-commerce, Shimaotong and cross-border purchase. Ningbo Comprehensive Pilot Zone strives to build a cross-border import leading city with the largest scale of development, the largest number of agglomerated enterprises, the most homogeneous commodity categories and the best infrastructure.

If the development of cross-border imports solves the problem of “buy” and significantly improves consumers’ quality of life, then the rapid development of cross-border E-commerce exports solves the problem of “selling” and promotes the upgrading of a large number of traditional enterprises.

After more than 30 years’ accumulation, the good enterprises, good crafts and good products that have been cultivated out of the "golden age" of foreign trade have already been integrated into and penetrated into foreign markets, but the bottleneck of profit, brand, innovation and market has always restricted the development and upgrading of "Ningbo’s manufacturing". In January 2016, Ningbo was approved to establish a national-level cross-border E-commerce comprehensive pilot zone. The municipal port office decisively turned to the export-oriented development strategy of import and export, relying on Ningbo’s “port, industry and opening policy” to promote strong growth in cross-border exports.

After nearly three years’ development, traditional enterprises have gradually abandoned traditional export ways such as OEM and low-cost advantages, and have made great strides toward new foreign trade and new manufacturing enterprises with brands, designs and technical content.

A number of traditional enterprises such as TAG Heuer, Loctek, MH, CNI, Fotile, Bull, and Grand Home actively reconstructed the production chain, supply chain, and logistics chain to improve quality and efficiency. A large number of enterprises in the clothing, home furnishing, household appliances, stationery, and outdoor products industries have used cross-border E-commerce platforms to grow into large-scale sellers with annual sales of over 10 million US dollars or even hundreds of millions of dollars. Oriented to the “One Belt, One Road” emerging market, they have built their own factories, or by docking upstream suppliers, have helped large number of factories with their transformation. According to estimates, Ningbo Comprehensive Pilot Zone enterprises have 25,000 registered accounts on international cross-border E-commerce platforms such as Amazon, Paypal, Alibaba and Wish, and opened more than 15,000 stores, creating 18,400 direct jobs and 63,600 indirect jobs. 

With the rapid development of digital trade, a new trade mode, and the cross-border E-commerce industry chain and ecological chain formed by the three streams of information flow, goods flow and capital flow, a large number of new service resource elements of cross-border E-commerce such as E-commerce platforms, intelligent logistics, digital payment, technology development and third-party service organizations accelerate their gathering and promote the continuous improvement of the cross-border E-commerce ecosystem.

 

One core, three platforms, and five supportive systems  

On the road to boosting the development of cross-border E-commerce, the Municipal Port Office has always played the role of “building a platform to promote transformation”, by using good use of the cross-border E-commerce Comprehensive Pilot Zone to provide good service for enterprises.

To this end, the Municipal Port Office started by introducing the strong and competitive enterprises. They have successively attracted major projects of cross-border E-commerce leading enterprises such as NetEase, Alibaba and Rookie Logistics to settle in Ningbo, and promoted the city government to sign strategic cooperation agreements with international giants such as Amazon and Ebay. At the same time, by industrial planning, policy support, environmental construction, and coordination, they tried to break through the bottleneck constraints through "one core, three platforms, five systems" to guide and encourage more companies to take the "Internet +" information channel to increase sales, expand profits, improve quality, create brands, and accelerate the promotion of Ningbo's cross-border E-commerce industry clusters and regional agglomerations.

In the face of new formats and new models, the Municipal Port Office adheres to the key of system innovation, and has successively formulated and promoted the implementation of 58 lists of institutional innovations in Ningbo Comprehensive Pilot Zone, combined with the reform of the “distribution service” of the regulatory authorities. Through improving efficiency,lifting restrictions and innovating model, they introduced more than 20 cross-border e-commerce facilitation measures according to local conditions. Through the international customs activities such as the World Customs Conference and the China-Central and Eastern European Countries Customs Cooperation Forum, they actively promoted cross-border E-commerce international cooperation and participate in the formulation of new rules.

Online service platforms, offline industrial parks, and cross-border warehousing logistics have become the three key carriers for promoting cross-border E-commerce development. The Municipal Port Office has established the nation's leading online comprehensive service platform for cross-border Ecommerce, broke regulatory information barriers, and provided enterprises with more than 150 services in 10 aspects, including commodity filing, business declaration and qualification inquiry. The three-way confluence, centralized inspection, and joint release have formed five major cross-border E-commerce industrial clusters such as Haishu Garment and Home Textiles, Yinzhou Hardware Tools, Yuyao Appliances, Cixi Appliances, and Ninghai Furniture.

Besides, the municipal port office has built a comprehensive cross-border E-commerce logistics ecological chain of sea, land, air and post: DHL, FedEx, SF and other industry giants have settled here; Netease invested 1 billion to build a global cross-border parent warehouse with 270,000 square meters; Alibaba has built a series of "Tiangong" warehouses with 100,000 square meters; the inbound and outbound cumulative volume of Ningbo International Mail Exchange Bureau exceeded 30 million, single-day peak exceeding 100,000.

Behind the rapid growth of cross-border E-commerce, there are strong support from five major systems, including policy guarantee, government-enterprise linkage, overseas service, business environment and talent think tank, to create a complete ecosystem of cross-border E-commerce and solve the worries of enterprises. The municipal port office cooperated with relevant departments to promote the traditional enterprises to actively break through the transition threshold through the support policies for small and micro enterprises, such as double-creation funds and cross-border e-commerce special funds, and promote the establishment of Ningbo Cross-border E-commerce Association and Overseas Warehouse Logistics Association. Zhejiang Wanli College established the first cross-border E-commerce college; Zhejiang Vocational College of Industry and Commerce established the first cross-border E-commerce and education alliance. They not only attracted the attention of the industry, but also embarked on a new way of “school, government and enterprise” tripartite to build a cross-border talent system.


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