“1039” is a customs export code, and its full name is market procurement trade mode. It refers to a trade mode in which goods are purchased in a recognized market agglomeration area and the export customs clearance procedures are handled by qualified operators. The maximum value limit of a single customs declaration for the market procurement trade mode is US$150,000, equivalent to about RMB 1 million.
This mode can be understood as a seller who does not have import and export qualifications entrusting qualified operators to purchase goods and declare them for export in the 1039 mode. Individuals can also entrust qualified operators to purchase goods for export and sales. There is no value-added tax, no input invoice is required, and of course there is no tax refund. Only personal business income tax needs to be paid. In addition, customs clearance is convenient and RMB settlement is supported. It is suitable for sellers who cannot obtain input purchase invoices, do not have export customs declaration qualifications, and have difficulty in foreign exchange settlement.
The difference between 1039 and general trade is that general trade is carried out according to ordinary foreign trade procedures, while the 1039 market procurement trade mode refers to a trade mode in which goods are purchased in a recognized market agglomeration area and the export customs clearance procedures are handled by qualified operators. The maximum value limit of a single customs declaration for market procurement trade is US$150,000. Market procurement trade export commodities shall be declared at the customs of the place of purchase. For market procurement trade export commodities that are transported in transit, the customs at the exit shall be responsible for the supervision of transit transportation.
If you want to engage in 1039 market procurement trade, you need to register as a market procurement trade operator with the business administration department of the city (district) where the market cluster is located, and register the consignee and consignor of import and export goods at the customs in accordance with relevant customs regulations. Foreign trade operators need to be responsible for the authenticity and legality of the goods they declare.
Not all commodities can go through the 1039 mode. Commodities that are prohibited or restricted from export by the state, or commodities that have not been identified by the market procurement commodity identification system, cannot go through the 1039 export mode, for example:
① Catalog of prohibited export goods
② Catalog of goods subject to export license management
③ Catalog of dual-use items and technology export license management
④ Catalog of imported and exported wild animal and plant species
⑤ Catalog of psychotropic drugs
⑥ Catalog of narcotic drugs
⑦ Catalog of imported and exported pesticides
⑧ Catalog of stimulants
⑨ Catalog of gold and its products for import and export management
⑩ Catalog of toxic chemicals strictly restricted from import and export in China
?New coronavirus testing reagents, medical masks, medical protective clothing, ventilators, infrared thermometers and non-medical masks (suspended)
For specific policies, you can check the General Administration of Customs Announcement No. 221 of 2019.