China's Cross-Border E-Commerce (CBEC) market is the world's largest, with retail imports exceeding ¥2 trillion RMB annually. For foreign brands, CBEC offers a fast track to Chinese consumers without setting up a local entity. This guide covers the pilot cities, platforms, logistics modes, and tax rules you need to know.
What Is CBEC?
CBEC (跨境电商) allows foreign brands to sell products directly to Chinese consumers through designated e-commerce platforms, with simplified customs clearance, preferential tax rates, and bonded warehouse logistics. It's the fastest way to enter China's consumer market.
CBEC Pilot Cities (37+ as of 2025)
China has designated 37+ CBEC pilot cities where cross-border e-commerce operations can be established. Each pilot city has at least one comprehensive bonded zone for CBEC operations:
| Tier | Pilot Cities | Key Advantage |
|---|---|---|
| Tier 1 (Major) | Shanghai, Beijing, Shenzhen, Guangzhou, Hangzhou, Tianjin | Largest consumer markets + best logistics |
| Tier 2 (Regional) | Ningbo, Zhengzhou, Chongqing, Chengdu, Qingdao, Suzhou, Dalian, Xiamen | Strong port/logistics + lower operating costs |
| Tier 3 (Emerging) | Yiwu, Nanning, Kunming, Urumqi, Horgos, Shantou, Quanzhou | Border trade + specialty markets |
The full list includes 37+ cities, with new cities added regularly. Each city offers slightly different incentives and logistics capabilities.
CBEC Platform Comparison
| Platform | Parent | Best For | Key Requirements | Fees |
|---|---|---|---|---|
| Tmall Global | Alibaba | Established brands seeking premium positioning | Overseas company registration, brand authorization, ¥50K-¥150K deposit | 5% commission + ¥30K-¥60K annual fee |
| JD International | JD.com | Brands emphasizing authenticity and fast logistics | Overseas company, brand authorization, ¥10K-¥100K deposit | 3-8% commission |
| Pinduoduo Cross-border | PDD | Value-oriented brands targeting price-sensitive consumers | Overseas company, brand authorization | Lower fees, group-buying model |
| Kaola (NetEase) | Alibaba (acquired) | Health supplements, beauty, maternal products | Overseas company, product compliance | Commission-based |
| Douyin/TikTok Shop | ByteDance | Brands leveraging live-streaming and short video | Overseas company, brand authorization | Commission + advertising |
CBEC Logistics Modes
There are two primary CBEC logistics modes, identified by their customs declaration codes:
Mode 1210: Bonded Warehouse (保税备货)
- How it works: Products are bulk-imported to a bonded zone in a CBEC pilot city, stored in a bonded warehouse, then shipped individually when consumers place orders.
- Pros: Faster delivery (1-3 days), lower per-unit logistics cost, better consumer experience.
- Cons: Requires inventory investment upfront, products must be on the positive list, bonded warehouse fees.
- Best for: High-volume products with predictable demand.
Mode 9610: Direct Mail (直邮)
- How it works: Products are shipped individually from an overseas warehouse directly to the Chinese consumer.
- Pros: No inventory investment, broader product range, no bonded warehouse needed.
- Cons: Slower delivery (7-15 days), higher per-unit logistics cost, customs delay risk.
- Best for: Low-volume products, new market testing, products not on the positive list.
CBEC Positive List
The CBEC Positive List (跨境电子商务零售进口商品清单) specifies which product categories can be sold via CBEC retail import. The list has been expanded multiple times and now covers ~1,400+ categories:
- Cosmetics & skincare - largest CBEC category
- Health supplements & food - major growth category
- Maternal & baby products - consistently high demand
- Consumer electronics - phones, accessories, smart devices
- Apparel & footwear - fashion brands
- Home appliances - small appliances, smart home
- Pet supplies - fastest-growing category
Products NOT on the list cannot be sold via CBEC and require traditional import channels (with a Chinese entity + full customs clearance).
CBEC Tax Rates
| Item | Rate | Notes |
|---|---|---|
| CBEC comprehensive tax | VAT (13%) + consumption tax (if applicable) × 70% | Significantly lower than traditional import tax |
| Tax exemption per transaction | ¥5,000 | Single order under ¥5,000 is tax-free |
| Annual exemption per person | ¥26,000 | Cumulative annual limit per consumer (by ID) |
| Above exemption | Full CBEC comprehensive tax | Plus possible customs duty |
| Consumption tax | Varies by product (cosmetics 15%, luxury goods 20%+) | Only for products on the consumption tax list |
How to Start Selling via CBEC
- Verify product eligibility: Check if your products are on the CBEC positive list.
- Choose a platform: Tmall Global for premium brands, JD International for logistics, Pinduoduo for value.
- Prepare documents: Overseas business license, brand authorization/trademark, product compliance certificates (FDA, CE, etc.).
- Choose logistics mode: 1210 (bonded) for high volume, 9610 (direct mail) for testing.
- Select a pilot city: Shanghai/Hangzhou/Ningbo for best infrastructure; other cities for lower costs.
- Partner with a CBEC service provider: They handle customs registration, platform setup, and logistics. Many platforms have recommended service partners.
- Register with customs: File with GACC (General Administration of Customs) through the platform or service provider.
- Launch: List products, set pricing (remember CBEC tax), and start selling.
Payment Compliance: Alipay & WeChat Cross-Border
To accept payments from Chinese consumers via Alipay/WeChat Pay, foreign merchants must:
- Register with Alipay Cross-Border or WeChat Pay Cross-Border (no Chinese entity required).
- Provide overseas business registration, settlement bank account, and product compliance documents.
- Funds settle in foreign currency (USD, EUR, etc.) to your overseas bank account - no RMB settlement needed.
- Transaction fees: typically 2-3% (varies by platform and settlement currency).
2026 CBEC Trends
- Live-streaming e-commerce: Douyin (TikTok China) and Kuaishou are becoming major CBEC sales channels via live-streaming.
- Bonded warehouse expansion: More pilot cities = more bonded zones, lowering logistics costs.
- Positive list expansion: More categories added regularly (medical devices, pet food, spirits).
- RMB settlement pilot: Some CBEC transactions now allow RMB settlement directly (previously foreign currency only).