In Shanghai Yangshan Free Trade Port Area, the Customs-controlled warehouse for cross-border e-commerce has been busy with goods processing for a few months. On the assembly line, boxes of import goods were successively packed and dispatched to domestic consumers. At present, the cross-border e-commerce volume is on fast rise in this Port Area. This January alone, Yangshan Customs House released about 43,000 inbound consignments for cross-border e-commerce, worth nearly CNY10 million, an increase of 5.7 times month-on-month.

Reportedly, famous cross-border e-commerce firms in China such as JD.com, Fruit Day, KJT.com, and SIPG Mall are all present in Yangshan and mainly operate mother-baby products, fruits, household chemicals, foods and healthcare products.

On 25 December 2015, JD.com opened its cross-border logistic center in the Free Trade Port Area. Until now, in only two months, it has dispatched 72,000 consignments, worth CNY15 million or so.

“The reason why JD.com sets its largest warehouse in Shanghai is not only the huge consumption potential in east China but also favorable customs measures in Shanghai. This Customs District provides onsite personnel for guidance and 24-hour services all year around, saving a large amount of time and cost for us and providing better consumer experiences to cross-border online shopping, so as to facilitate our cross-border operations.” said Cai Ronghong, CEO of Shanghai YuanZhou Supply Chain Management Company Ltd.

The bonded entry mode of cross-border e-commerce makes it easy for domestic consumers to directly buy commodities from overseas. E-commerce firms can bring overseas commodities into Customs-controlled warehouses in a bonded way and dispatch goods from the controlled area when getting orders from buyers, thus lower logistic costs and faster clearance bring double advantages in commodity prices and distribution speed.

The good momentum has also attracted more other e-commerce firms to pay field visits and consult in Yangshan Free Trade Port Area, including YHD.com, Feiniu.com, Amazon.com, Suning.com, Xiaohongshu.com and Yangland.com, some of which intend to join soon.

Goods sorting and packing line in the Customs-controlled warehouse