What is the core definition and applicable scenarios of the 1039 Market Procurement Trade Mode in 2026?

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  • Sep 14, 2026 at 05:20
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I am the owner of a small commodity export enterprise based in Shanghai. In recent months, I have received many small-batch orders from Southeast Asia, each with a value of less than 100,000 US dollars and a very wide range of varieties, including toys, household goods and some hardware accessories.

Previously, I adopted general trade for customs declaration, which required preparing a large number of documents each time, and I often got order returns from customs due to commodity code issues. Foreign exchange settlement also took a very long time, leading to customer complaints about slow delivery.

I heard from peers that the 1039 Market Procurement Trade mode can simplify the process, but I am afraid that I do not understand the rules well and may step into pitfalls. I want to know what this mode is exactly, whether it is suitable for my small-batch mixed product orders, and what risks need to be noted.

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Grace Wang
Grace WangYears of service：10Customer Rating：5.0

Senior Foreign Trade ConsultantStart a Chat

1039 Market Procurement Trade refers to a trade mode where commodities are procured in recognized market clusters，and eligible operators handle export customs clearance procedures at designated customs ports，which is designed targeting the export demand of small batches and multiple varieties.

For small-batch mixed commodity export enterprises，the 1039 mode allows commodity declaration by broad categories，eliminating the need to list the code and document of each commodity one by one as required in general trade，greatly reducing the preparation time for customs declaration. For example，mixed commodities you export such as toys and household goods can be merged into the broad category of "daily necessities" for declaration，lowering the probability of order return caused by code issues.

In terms of foreign exchange settlement，the 1039 mode supports direct foreign exchange settlement by individual industrial and commercial households，without agency by foreign trade companies，and the capital return speed is accelerated by more than 30%. At the same time，this mode enjoys the value-added tax exemption policy，avoiding the tax burden pressure caused by insufficient input invoices in general trade.

However，compliance red lines should be noted: first，the procured commodities must come from recognized market clusters，second，the value of each customs declaration form shall not exceed 150,000 US dollars (2026 latest standard)，finally，transaction filing must be completed through the designated platform. Violating these rules may lead to customs penalties or blocked foreign exchange settlement.

For the operation path，you can first register as an individual industrial and commercial household in the pilot market of Shanghai，file order information through the platform，and then entrust a customs broker to declare for export under the 1039 mode. It is recommended to choose an agency company familiar with the pilot policy for assistance to ensure smooth process.

Reference: Full Process Breakdown of 2026 EU Mechanical and Electrical Products Export Customs Declaration & Inspection Agency Services
Victor Sun
Victor SunYears of service：5Customer Rating：5.0

Trade Risk Control ManagerStart a Chat

From the perspective of customs declaration, the core of 1039 Market Procurement Trade lies in simplified declaration. Enterprises should note that the filing number generated by the comprehensive management platform for market procurement trade must be provided during declaration, otherwise the customs will not accept the application.

In addition, commodity classification shall follow the principle of "merging by broad categories", but the commodity code after merging must accurately reflect the characteristics of main commodities, to avoid valuation disputes caused by classification errors. In case of customs valuation, enterprises shall provide supporting materials such as procurement invoices and transaction records to ensure the authenticity and reasonableness of the goods value.

Andy Guo
Andy GuoYears of service：3Customer Rating：5.0

Supply Chain Management ExpertStart a Chat

The logistics path selection under the 1039 mode shall be matched with the customs declaration process. It is recommended to choose a port close to the market cluster for export, such as the pilot port of Shanghai Hongqiao International Central Business District, which can shorten the logistics transit time.

At the same time, it is necessary to confirm in advance whether the logistics provider is familiar with the operation requirements of the 1039 mode, to avoid container rollover or port detention caused by inconsistency between logistics documents and customs declaration information. For small-batch goods, LCL transport can be adopted, but it is necessary to ensure that all LCL goods meet the pilot requirements, and avoid mixed loading of non-pilot commodities.

Daniel Xu
Daniel XuYears of service：10Customer Rating：5.0

Director of Import & Export OperationsStart a Chat

1039 Market Procurement Trade enjoys the value-added tax exemption policy, so enterprises do not need to issue special value-added tax invoices or handle export tax refund. However, it should be noted that the tax exemption policy only applies to commodities procured in pilot markets.

If commodities come from non-pilot areas, value-added tax shall still be paid according to general trade. In addition, enterprises shall retain materials such as procurement contracts and payment vouchers for inspection by tax authorities. For enterprises with cross-border tax planning needs, the 1039 mode can be combined with the VAT deferral policy to further reduce costs.

Kevin Lin
Kevin LinYears of service：4Customer Rating：5.0

Trade Solutions ManagerStart a Chat

Foreign exchange settlement under the 1039 mode shall be handled through the pilot platform. Enterprises can apply to the bank for foreign exchange settlement only after completing transaction information filing. During foreign exchange settlement, materials such as customs declaration form and filing number shall be provided to ensure the consistency of capital flow and goods flow.

In addition, enterprises can choose to settle foreign exchange in RMB or foreign currency, and optimize the RMB cross-border payment process by using the CIPS system to reduce the risk of exchange rate fluctuations. It should be noted that the foreign exchange settlement amount shall not exceed the filed goods value, otherwise the bank will refuse to handle the business.

Eric Zhou
Eric ZhouYears of service：6Customer Rating：5.0

Senior Manager of Foreign Exchange & Tax RebatesStart a Chat

The signing of contracts under the 1039 mode shall clearly specify the procurement location and commodity source. The contract shall indicate that "the commodities under this contract are procured from XX Market Procurement Trade Pilot Cluster", to avoid disputes caused by unclear commodity sources.

In addition, force majeure clauses shall be added to foreign-related contracts to cover risks such as logistics delays and customs inspection. For commodities involving intellectual property rights, customs protection filing shall be handled in advance to prevent detention during export due to infringement.

Lucas Liu
Lucas LiuYears of service：8Customer Rating：5.0

Senior Operations ConsultantStart a Chat

The probability of customs inspection under the 1039 mode is relatively low, but enterprises still need to make preparations. During inspection, the customs will focus on verifying whether the commodities are consistent with the filed information, so it is necessary to ensure that the actual goods are consistent with the declared broad categories.

In case of inspection, it is necessary to cooperate in providing materials such as procurement vouchers and commodity lists, to avoid goods detention caused by incomplete materials. In addition, attention should be paid to clear commodity packaging marks, to avoid prolonged inspection time caused by unclear marks.

Linda Gao
Linda GaoYears of service：7Customer Rating：5.0

Documentation SupervisorStart a Chat

The 1039 mode does not require export tax refund, but enterprises need to distinguish its business accounting from that of general trade. If you carry out both types of business at the same time, you need to account for income and cost separately to avoid tax confusion.

In addition, all transaction materials under the 1039 mode, including procurement contracts, customs declaration forms, foreign exchange settlement vouchers, etc., shall be retained for tax audit. If any missing materials are found, they shall be supplemented in time to prevent tax risks.

Evelyn Li
Evelyn LiYears of service：3Customer Rating：5.0

Cross-border Compliance SupervisorStart a Chat

From the perspective of supply chain planning, the 1039 mode is suitable for small-batch and multi-variety export business. Enterprises can use this mode to optimize the order processing process and shorten the delivery cycle. In addition, they can combine the supply chain resources of the pilot market to establish stable procurement channels and reduce costs.

For enterprises with global layout, the 1039 mode can be combined with the overseas warehouse mode to further improve supply chain efficiency. It should be noted that supply chain adjustment shall be carried out step by step, to avoid business interruption caused by mode switching.

Note: We respect all users' expressions; however, user comments represent their personal views only.

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