Help enterprises solve the problem of domestic sales and promote the effective penetration of domestic and foreign trade

The Ministry of Commerce introduces the relevant information of the Implementation Opinions on Supporting Export Products to Domestic Sales-
Help enterprises solve the problem of domestic sales and promote the effective penetration of domestic and foreign trade

On June 30th, the Ministry of Commerce held a special online conference to introduce the implementation opinions on supporting export products to domestic sales recently issued by the General Office of the State Council. Yang Guoliang, deputy director of the Foreign Trade Department of the Ministry of Commerce, said that in the short term, supporting export products to domestic sales is an emergency measure to help foreign trade enterprises solve the problem of domestic sales and promote the basic stability of foreign trade. In the long run, supporting the export products to domestic sales is also a long-term way to promote the effective integration of domestic and foreign trade, make full use of the domestic and international dual cycle, and cultivate new advantages in participating in international cooperation and competition.

According to a survey conducted by the Ministry of Commerce, foreign trade enterprises also face some difficulties in transferring to domestic sales, mainly because some products have different standards at home and abroad. For example, the size of clothing exported to Europe and America is different from the domestic standard, and the style is also different from the domestic market demand. The export of some export products to domestic market often involves brand and trademark issues and needs to be authorized by the foreign party. Some foreign trade enterprises produce according to orders for a long time, lack domestic marketing experience and specialized teams, and their brand awareness is not high.

Yang Guoliang stressed that there should be great growth potential for exporting products to domestic market. From the perspective of domestic consumption, the national epidemic prevention and control war has achieved significant strategic results, and the domestic market demand has been accelerated. From the perspective of investment, the promotion of new infrastructure, new urbanization and major projects in various places has brought new opportunities. From the perspective of consumption upgrading, some foreign trade enterprises are shifting from traditional mass production to personalized customization, and new consumption modes such as online sales and live delivery are developing rapidly, which has opened up sales channels for foreign trade enterprises directly facing consumer groups.

Li Danghui, deputy director of the Consumption Promotion Department of the Ministry of Commerce, said that the transfer of high-quality export products to domestic sales is not just a substitute relationship for the domestic market, but will further enrich the supply of the domestic market, increase consumers’ choices, accurately meet demand, and promote consumption upgrading.

It is understood that since the beginning of this year, China’s consumer market has been warming up month by month, the consumption of basic daily necessities has continued to grow, upgraded commodities have been more active, and the retail sales of housing and transportation commodities have been improved. This shows that under the normalization of epidemic prevention and control, the demand and pursuit of a better life of ordinary people are still growing, reflecting the great development potential and strong resilience of China’s consumer market.

At the same time, the Li Party will emphasize that the long-term common rules in the international market will also help to improve and enhance the domestic business environment, "which will help us fully release the advantages of super-large market scale and domestic demand potential, promote the formation of a large domestic cycle, and promote the mutual promotion of domestic and international double cycles".

In order to further relax the restrictions on domestic sales of processing trade enterprises, the "Implementation Opinions" proposed to further relax the time limit for domestic sales taxation, and adjust it from monthly declaration to quarterly declaration at the longest, which saved the cost of enterprises. Lin Shaobin, deputy director of the Enterprise Management and Inspection Department of the General Administration of Customs, said that this will greatly improve the overall efficiency of enterprises in handling domestic sales and play a positive role in exploring the domestic market. The data shows that in 2019, the domestic sales value of processing trade in China was about 338.3 billion yuan, up 8.4% year-on-year.

In addition, the Ministry of Commerce will hold a nationwide consumption promotion activity in the second half of this year, and use the advantages of pedestrian streets and key business districts in brand agglomeration, channel integration and market popularity to broaden the domestic sales channels of marketable export products. Help foreign trade enterprises to further connect with domestic large-scale commercial and trade circulation enterprises and e-commerce platform enterprises, and support all localities to include export-to-domestic products in the scope of consumption promotion activities. (Reporter Feng Qiyu)