The General Administration of Customs of China said it had developed an itinerary plan for the reform on the optimization and integration of Customs Special Control Areas. In the months ahead, the General Administration of Customs, the government agency that leads the reform, will focus on the following reform programs: a)Special Customs Control Areas Integration; b) Customs facilitative measures for the China(Shanghai) Pilot Free Trade Zone(PFTZ) expansion and duplication; c) new business types development promotion(for example, maintenance services and exhibition) and d) new carrying forward model for bonded goods transited among Customs special control areas popularization.

Since the opening of Shanghai Waigaoqiao Bonded Area in 1990, China has authorized 6 types of Customs Special Control Areas to cater for the needs of different stages of the reform and opening-up program, which include:

--Bonded Area in 1990, which was put into use as a supplementary measure for the state strategy of opening up 14 cities located in costal areas and proved later to be an important support for the investment attraction, equipment import and management experience learning;

--Export Processing Zone in 2000 for the state strategy of export expansion;

--Bonded Logistics Park in 2003 for the promotion of interaction between bonded areas and ports;

--Bonded Port in 2005 for the establishment of the international shipping center;

--Cross-boundary Industrial Park in 2005 for the state strategy of enhancing exchanges with neighboring countries; and

--Comprehensive Bonded Area in 2006 for the optimization of export processing zone.

By far, China has approved 147 Customs special control areas, among which 30 were transformed and 1 was made to discontinue its operation in the integration program. The remaining 116 which are still in operation have created jobs for over 2 million people.

20 subjects have been listed in the reform plan on the optimization and integration of Customs special control areas, with 15 of them as the priorities in recent execution efforts.

On integration, endeavors will be made to strictly control the approval of new Customs special control areas, to put into practice the exit strategy and to support the qualified Customs special control areas (for example, the qualified export processing zones) to be transformed into comprehensive boned areas. It is said that the General Administration of Customs had kicked off the examining and assessment process for the transformation of 8 export processing zones into comprehensive boned areas in the year.

On optimization, a whole array of measures will be taken, which include: a) evaluating the pilot program on selective taxation in PFTZ; b) accelerating the opening of a priority zone that encourages the development of different businesses in the Customs special control areas; c) supporting the exhibition and display of boned goods; d)assisting enterprises located in Customs special control areas in exploring both the domestic and international markets; e)approving the provision of high-tech, high value-added and pollution-free maintenance services by enterprises located in Customs special control areas; and f) encouraging cross-border e-commerce in Customs special control areas. Pilot programs on cross-border e-commerce have been trialed by the General Administration of Customs in the Customs special control areas in Hangzhou and Shanghai. Sharp increase in online sales has been recorded since the test, for example, the sales topped about RMB 30 million for 3 months merely in the test in Hangzhou Export Processing Zone.

Mr. YU Guangzhou, Minister of the General Administration of Customs, said that the Decision on “major issues concerning comprehensively deepening reforms” approved in the 3rd Plenary Session of 18th CPC Central Committee stipulated that measures shall be taken to optimize and integrate Customs special control areas. Following the principles outlined by the CPC Central Committee, the General Administration of Customs had translated the idea of integration into practice through effective delegation of task and accountability identification. As the specific tasks for the year 2014 and reform roadmap for sometime to come have already been set, the more important thing to do at present is to start the execution with bold steps, said Minister Yu.

Minister Yu said all the reform measures taken would help trim, fertilize and water the “big tree” of Customs special control areas. They would become the new force behind and provide nutrition for the healthy development of the Customs special control areas.