Alibaba Group and the municipal government of Yiwu, Zhejiang Province in China, have announced plans to develop a Digitized Comprehensive Bonded Zone under the eWTP (electronic World Trade Platform) framework, making cross-border e-commerce more accessible to small and medium-sized enterprises (SMEs) at the world’s largest wholesale market.
A core part of the new initiatives is a joint venture between Alibaba Group and Yiwu-based China Commodities City Group to develop the eWTP cross-border trade service platform of Yiwu. This one-stop platform will offer SMEs digitized trade services, including customs clearance, foreign exchange settlement and tax procedures. It will be the third trade service platform established at an eWTP Hub, following the launch of trade platforms in Hangzhou, China and Liège, Belgium, the company said.
“With its advantages as a product and SME hub as well as its existing trade infrastructure, Yiwu is the definition of strategic planning for enabling businesses to navigate the digital age. Alibaba will work together with Yiwu to further facilitate the city’s transformation into a digitized small commodities trading hub and digitized port as a step toward the collective goal of complete digitization of global trade,” said Daniel Zhang, Chairman and Chief Executive Officer of Alibaba Group.
To this end, Alibaba Group and the municipal government of Yiwu have also announced the establishment of the eWTP Yiwu Digital Customs Clearance Port. The digital customs clearance system will enable overseas merchants exporting products to China in smaller quantities via international parcel delivery to complete and clear customs processes online, getting parcels to customers in a more-timely fashion.
According to Alibaba.com, Alibaba’s platform for global business-to-business trade, its Yiwu-based supplier members have attracted business opportunities from close to three million active buyers over the past 12 months, generating 82% more online transactions on a year-on-year basis.
Under the eWTP framework, Yiwu businesses have access to their counterparts in various other eWTP hubs, allowing them to explore even more cross-border opportunities.
“We believe a digitized trading world where all core aspects of commerce are digitized is under formation. From merchants to products, from order settlement to logistics, and from a container to a receipt, everything is going to be inseparable from digital technology. With our shared customer base and shared markets, Yiwu and Alibaba will jointly usher in innovations in trade rules, technology and trade models to serve our customers and markets better and create better lives for consumers,” added Zhang.
Initiated by Alibaba Group founder Jack Ma, the eWTP is a private-sector-led, multi-stakeholder initiative that facilitates public-private dialogue and collaboration to share best practices, incubate new trade rules and foster a more-integrated policy and business environment to help develop inclusive trade and the digital economy. To date, Alibaba Group has joined forces with the governments of Belgium, Malaysia, Rwanda, and Ethiopia as well as Hangzhou and Yiwu in China to establish six eWTP hubs around the world.
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