Support for Hengqin New Area Opening-up and Development to Promote Guangdong's Economic Integration with Hong Kong and Macao SARs
[Wang Hua]: So are there any differences between Hengqin New Area and the China (Shanghai) Pilot Free Trade Zone (Shanghai FTZ) and the Pingtan Comprehensive Pilot Zone? 03/21/2014 10:08:06
[Xiong Zhenguo]: There are indeed some similarities between the supervision policies of Hengqin New Area, Shanghai FTZ and Pingtan Comprehensive Pilot Zone. However, their development orientations are different. For example, in the terms of function positioning, Hengqin New Area is the new carrier of close cooperation among Guangdong Province, Hong Kong SAR and Macao SAR, while Shanghai FTZ is a test field of free trade. In terms of industrial development, Shanghai FTZ focuses on finance, trade and services, while Hengqin New Area stresses on boosting tourism, recreation and modern services. 03/21/2014 10:08:34
[Xiong Zhenguo]: In addition, the biggest difference between Hengqin and other special Customs-controlled areas is: at present no people are allowed to live in special Custom-controlled areas, and everything related to inbound and outbound goods are required to be declared to the Customs, that is, all goods, means of transport and the luggage and articles carried by passengers entering or exiting the special Customs-controlled areas are under Customs supervision. However, by the mode of “relaxed supervision over the first line, effective control over the second line, separation between goods and people and classified management”, in Hengqin we implement preferential policies such as bond, duty exemption and tax refund after entry and selective tax levy for goods related to production. At the second line, we set up green channel and red channel, and except for goods that are bonded and applicable to duty exemption and refund as they enter Hengqin, other goods, vehicles and persons are allowed to enter or exit from Hengqin via the green channel. 03/21/2014 10:09:08
[Wang Hua]: It’s obvious that places with residents are hard to be supervised, so how can you ensure that the supervision is in place and won’t affect the normal life of residents? 03/21/2014 10:09:55
[Xiong Zhenguo]: We propose the management mode of “relaxed supervision over the first line, effective control over the second line, separation between goods and people and classified management”, aiming to conduct strict and effective control without disturbing the normal life of residents to the maximum extent. 03/21/2014 10:10:29
[Xiong Zhenguo]: To put it simple, by “relaxed supervision over the first line and effective control over the second line”, the “first line” has the function of a port to implement registration management for bonded or duty-free goods from outside China that enter or exit the New Area and the declaration management for other goods; and the “second line” has the function of a special Customs-controlled area to supervise goods under Customs supervision that enter or exit from the Area. 03/21/2014 10:10:38
[Xiong Zhenguo]: By “separation between people and goods and classified management”, we implement declaration channel-based, differentiated management for goods, people and vehicles that enter or exit from the Area. Management should be carried out effectively and as necessary. Meanwhile, according to the principle of facilitating the development of Hengqin and the entry and exit of people, goods and vehicles as well as inspection and supervision, and considering the special terrain conditions of Hengqin Island, we adopted the method of combining e-fences and patrolling, and developed a new customized mode of around-Island monitoring for Hengqin New Area, so as to realize effective supervision and efficient operation. 03/21/2014 10:11:27
[Wang Hua]: How is the differentiated management implemented specifically? I think it’s a common concern among friends coming to and from Hengqin. Will they have to make declaration or receive inspection when passing through the “first line” and the “second line”? 03/21/2014 10:12:02
[Xiong Zhenguo]: As to the questions, we invite Mr. Wu, Director of Hengqin Customs House to give an answer. 03/21/2014 10:12:13
[Wu Yirong]: OK, my pleasure. We conduct differentiated management for goods entering and exiting Hengqin through the first line and the second line by the declaration mode. For example, the registration system is implemented to inbound goods that enjoy the bonded and duty exemption policy, and the declaration system is implemented to other inbound goods (the former first-line declaration management). However, the Customs reserves the inspection right for goods, vehicles and luggage and articles carried by people that are not required to complete customs procedures when they enter or exit the New Area through the second line. 03/21/2014 10:12:49