For years, small commodity exporters in Yiwu relied on gray-market channels. That changed with Customs Code 1039 — the Market Procurement Trade model — providing a compliant, simplified pathway for small exporters.
What Is Market Procurement Trade?
Market Procurement Trade (Code 1039) is designed for goods purchased within designated market clusters. Benefits: duty-free export without VAT invoices, simplified customs classification, and legal FX settlement to individual accounts. Currently 31 pilot zones support this model across China.
Who Should Use It?
Ideal for small commodities, multi-variety, multi-batch exports — Yiwu accessories, Guangzhou apparel, Linyi hardware. NOT suitable for bulk commodities or products with high VAT refund rates, since 1039 uses VAT exemption without rebate.
How to Get Started
Register as a foreign trade merchant in a pilot zone, complete online filing, purchase goods inside the market area, file simplified declarations, and receive payments directly to your personal bank account.
FAQ
Can I mix 1039 with general trade declarations?
No. Each shipment uses only one customs code. Split mixed goods into separate declarations.
Do I need to register a company?
Individual business license is sufficient, registered in a pilot zone.