Online Interview
Topic: Support for Hengqin New Area Opening-up and Development to Promote Guangdong's Economic Integration with Hong Kong and Macao SARs
Time:10:00 AM (Wed) March 26, 2014
Special Guests:Guests: Xiong Zhenguo, Deputy Director General of Gongbei Customs District; Wu Yirong, Director of Hengqin Customs House, Gongbei Customs District; Zhou Xiaolei, Deputy Director of the Processing-Trade Supervision Division, Gongbei Customs District;
Online Interview Photos
Support for Hengqin New Area Opening-up and Development to Promote Guangdong's Economic Integration with Hong Kong and Macao SARs
[Wang Hua]: What you mentioned is a bit like the negative list of Shanghai FTZ. For goods in the list, one must pay the taxes, and for those not in the list, duty exemption or bond is granted? 03/21/2014 10:20:53
[Zhou Xiaolei]: Yes. In addition to “duty exemption” and “bond”, Hengqin also implements “tax refund”. In other words, production-related goods enjoy the export tax refund when they enter the New Area from outside. And the selective tax levy means, for exit or intra-Hengqin sales of goods produced or processed within the New Area, enterprises can make tax declaration by taking the goods as finished products or materials after conversion. 03/21/2014 10:21:38
[Wang Hua]: Can you give an example? 03/21/2014 10:21:46
[Zhou Xiaolei]: Selective tax levy in fact means to grant enterprises the right to select and pay duties and taxes. Enterprises can pay tax according to the lower one. For example, the tariff rate for the finished LCD monitor is 0, while the tariff rate for the LCD panel as parts is 5%. Then enterprises can select tax payment for finished product. Another example: the tariff rate is 0 for logs imported for producing wooden cases, boxes and others, while the tariff rate for wooden cases and boxes is 7.5%. So enterprises can select tax payment based on materials. 03/21/2014 10:22:34
[Zhou Xiaolei]: It should be noted that according to the state regulations, enterprises cannot select the tax price of the value-added tax and consumption tax and they must pay such taxes for goods according to their declaration status. 03/21/2014 10:23:10
[Wang Hua]: Thanks for your explanation, Mr. Zhou. Well, Mr. Xiong, will those preferential policies be implemented after operation? 03/21/2014 10:23:59
[Xiong Zhenguo]: Yes. The Customs have stated very clearly about the supervisions approaches in Hengqin New Area: Hengqin should establish round-island patrol, monitoring facilities and Customs information management platform that comply with the Customs’ requirement. In the “first-line” and “second-line” customs-controlled areas and supervision premises within Hengqin, there should be facilities, devices and sites complying with the customs supervision requirement; and only after passing the inspection and acceptance by the GACC, Hengqin Customs can conduct the relevant business. In other words, those preferential policies will be implemented after the operation of Hengqin Customs. You may refer to “GACC Decree No. 209”on the GACC website for relevant regulations. 03/21/2014 10:24:55
[Wang Hua]: We are very concerned about the time to start business operation? Is there any timetable now? 03/21/2014 10:25:40
[Xiong Zhenguo]: At present, the infrastructure construction for the line-based management and the operation in Hengqin New Area are nearing completion. The construction of the second-line passage with a total area of 110,000m2 has been fully completed. The basic functions of the custom aiding management system have been developed and improved gradually. The monitoring system and round-island monitoring center radiating 53 km are in service. The renovation and expansion of the first-line port steps up. It can be said that all preparation for the acceptance of the infrastructure relate to the operation in Hengqin New Area have been basically completed. 03/21/2014 10:26:19
[Xiong Zhenguo]: It is understood that National Development and Reform Commission of the People’s Republic of China has organized relevant departments to reach a preliminary agreement on the acceptance for infrastructure related to the operation in Hengqin New Area that based on the pre-acceptance led by Guangdong Provincial Government, GACC organizes departments concerned to conduct a joint acceptance of the infrastructure related to the operation. Now Zhuhai Municipal Government and Hengqin New Area have submitted an official application for the pre-acceptance to relevant state departments through Guangdong Provincial Government. Gongbei Customs will cooperate actively in related efforts for an earlier start of the operation in Hengqin New Area, and strive to implement relevant policies and measures as soon as possible. 03/21/2014 10:26:52