The program of free trade in Shanghai will focus on the free flow of the three major elements of goods, funds and personnel. The free trade port hopes for a breakthrough in terms of foreign exchange administration, tax incentives, foreigners’ receipt of China’s green card and settlement of foreign workers. In addition, Freeport will strive to achieve the overall regulatory strategy of “domestic clearance” in order to develop offshore trade and offshore finance. At present, the program is seeking guidance from various departments for improvement.
What are the specific program details? Here’s the key points:
In the free flow of goods, all enterprises filing and registering in free ports, import and export of goods in the free port without the Customs, Inspection and Quarantine departments to carry out inspections and audits, only the key types of key cargo inspection system.
The free flow of funds, the main contents include improving the management of foreign exchange management, tax preferential policies to adjust and improve the free trade zone account system to speed up the development of RMB offshore business. With specific details, Freeport will strive to achieve the free flow of “incremental” foreign exchange. In addition, Freeport will also strive to substantially reduce the income tax rate of registered enterprises in the port.
With regard to the free flow of qualified personnel, foreign talents employed by enterprises in Hong Kong will target the issuance of a green card in China. Therefore, there may be more preferential measures for setting up of foreign talents working in Hong Kong enterprises in Shanghai.
Chen Bo, a professor at Huazhong University of Science and Technology and executive director of the Free Trade Zone Research Center, said that the relevant policies on the circulation of people are more likely to make breakthroughs and the contents of foreign exchange administration still need to be confirmed.
As for the overall design of the program, the concept of “customs clearance inside and outside the territory” has become the top priority. Correspondingly, “letting go of the first line, safe and efficient control of the second line, and freedom in the area” are the two major areas.
October 20, Shanghai Entry-Exit Inspection and Quarantine Bureau Secretary Pujiang, Party Secretary Xie Qiuhui published an article that Shanghai Free Trade Port Area will be in accordance with the “Negative List + non-non-non-intervention,” the overall principle of creating a higher standard of single window, One-stop customs clearance and centralized supervision mode, the implementation of government regulation innovation.
Xie Qiuhui said on the “let it go”, to explore unconditional access to the front line, the registration record, exemption zone exemption; the introduction of market mechanisms, the implementation of third-party acquisition of letters and even more parties to adopt the letter; the use of qualified assumptions, non-intrusive monitoring idea. In the “manageability”, the application of risk management theory and technology, based on big data analysis to determine the negative list and key regulatory targets, accurately and efficiently hold the bottom line.
The goal of the free trade port construction is not limited to the trade itself. The tentative plan of the program was to trade-led industries. The relevant leaders said that “huge additional value brought by huge trade volume should be left behind”.
What does this mean? That is, we may not make profits in trade, but trade-related industries must make money.
Where is the huge trade? Professor Chen Bo said that the core lies in offshore trade. The core of offshore trade lies in the territory of “customs control”, what does it mean? In the past, foreign goods shipped to Shanghai, regardless of the final sale to Japan or the United States, are to declare and pay taxes, then possible, you shipped to the Freeport Inside, as long as the business does not sell to China, all duty-free, do not need to declare, the cost of business will be greatly reduced.
Why should the goods shipped to Shanghai first? Chen Bo explained that the shipping trade in order to eliminate costs are often large transport, bulk transport caused by the mismatch of time, that is transported over time, do not know who their potential sellers, there may be other countries, if one The fact that the ports are merely storage and tax declaration requires an increase in the cost of the business and therefore the demand for offshore trade.
Bai Ming, deputy director of the Institute of International Trade and Economic Cooperation under the Ministry of Commerce of the International Institute of Market Research, believes that the difference between a free port and a free trade area is mainly reflected in allowing offshore trade and further opening up the high-end service industry based on offshore trade. Offshore finance and other related business.
China was originally one of the largest potential markets in the world. Before the commodities it sold to China could be stored in Singapore or South Korea or Taiwan, once China allows off-shore trade, it may soon have come to Shanghai .
Why is Hong Kong’s free port development so dramatic that since the 1990s, the share of Hong Kong’s offshore trade in total foreign trade has risen from 19% in 1988 to 65% now, the position of Hong Kong’s Asia Pacific International Trade Center has been steadily consolidated.
According to international experience, with the development of offshore trade, there will be opportunities in areas such as transportation and storage of bulk raw materials, distribution centers and offshore finance.
Chen Bo said: “The first thing we bring is the increase in the volume of shipping goods, which was followed by onshore trade and entrepot trade. It has now added a large bulk of offshore trade and attracted the potential trade from other countries. The second is the need for a large number of warehousing, logistics and warehousing industries will be driven; the third is the distribution and transportation; the fourth is offshore financial services, offshore trade needs to be directly traded in the primary market, the need for trading platform, futures, Shore trade, developing financial services and establishing a financial service center in Shanghai is also appropriate. ”
The development of these industries will also bring business opportunities to the relevant listed companies. A listed public company executive said the company is optimistic about the opportunities brought by the bulk raw materials transportation. “Bulk raw materials are characterized by large volume and high value, and they are also less sensitive to the price of freight.” According to the company’s business manager, With the business development of bulk raw material transportation, the derivative business of warehousing and supply chain finance will also expand rapidly. In order to develop related businesses, the company plans to build a warehouse of about 200 mu in Yangshan Port.
Another listed company executives interviewed by China Securities Journal introduced the company operating in Yangshan Port, a multinational distribution center, but is currently mainly responsible for the allocation of the domestic market, with the free port policy, the company has the opportunity Get more business in the distribution center.