Pingtan, an island city in Fujian, the closest place on the Chinese mainland to the island of Taiwan implemented the 5034 regulatory model for logistic goods. The 5034 model, a customs supervision framework, is a streamlined procedure that practices more flexibility for imports. With the new model, imported goods can be stored in the bonded warehouse or be repackaged and distributed for online sales nationwide.

According to Yang Jitao, head of Pingtan Cross-Straits International Supply Chain Management Co., Ltd., 5034 opens up a new paradigm for international traders while reducing labor and logistic costs. It also unlocks new opportunities for growth and expansion in the mainland market by opening up multiple sales channels for a single product.

Yang illustrated this by citing how a mainland merchant who relied on traditional trade in the past, leveraged 5034 in Pingtan to channel his products through cost-effective cross-border e-commerce platforms and increased market exposure.

Yang also emphasized Pingtan's strategic location for cross-Straits trade and the company's plans to fully utilize this geographical proximity to Taiwan and the incentives it provides to rev up the development of cross-border e-commerce. By combining with the new retail model of live streaming e-commerce, Pingtan aims to become a distribution center for cross-Straits goods.

Spotted a mistake or want to add something? All rights reserved. Do not reproduce our content without permission–you can contact us directly on our Twitter mailbox. Follow @pingtanchina (Twitter)