What’s New about the 14 Innovative Measures Issued by Shanghai Customs to Shanghai Pilot Free Trade Zone?
[Shu Qinfang]: By taking the latter four measures, the Customs means to expand the functions of the FTZ. In other words, enterprises are allowed to undertake four businesses within the FTZ, namely, bonded exhibition and trading, repair at home and abroad, bonded delivery of futures goods, and financial leasing.
[Wang Hua]: Those 7 measures have been in practice for some time. What about the effect? Can you tell us the latest progress? 06/04/2014 13:43:05
[Shu Qinfang]: Since the launch of the first 7 measures, in addition to the original pilot enterprises, some other enterprises were also attracted and participated in the pilot project. For instance, there were originally 47 pilot enterprises for “entering the FTZ before customs declaration procedures”. After promotion, some big enterprises like 3M Company were also drawn in. 06/04/2014 13:43:18
[Shu Qinfang]: 3M manufactures a large variety of products, for example, products for every day use, industrial products and safety products. Their daily import and export declaration features multiple product names, various models and huge quantities. They often apply to the Customs for amendment due to classification errors or shortage or overload, which affects the efficiency of customs clearance. By “entering the FTZ before customs declaration procedures”, they can declare directly as per actual conditions after the goods are delivered to the warehouse and the inventory is made. They don’t need to worry about classification errors or shortage and overload. Customs clearance is thus much easier. 06/04/2014 13:44:09
[Shu Qinfang]: As to another measure, “self-managed transport within the FTZ”, we can take Shanghai Shine-link International Logistics Co., Ltd as an example. The company is one of the first pilot enterprises for the measure. Its transport route is from Waigaoqiao Bonded Area to Yangshan Free Trade Port. After adopting the measure, they can save the waiting time by 30 minutes in average for each vehicle, and also save a lot on logistic fee. For the distance between Waigaoqiao and Yangshan, an enterprise can save RMB 50/vehicle for 2t trucks and RMB 100/vehicle for 5t trucks. 06/04/2014 13:44:48
[Qiu Haiying]: In terms of functional development, enterprises also express great interest. In the Pudong Airport Bonded Area, Boeing Company started to provide repair-at-home-and-abroad services this year, and has so far repaired 16 aircrafts, valued at USD 189 million. In May, Boeing Company had about 7,464 parts verified and written-off by using the purchase-order verification and write-off, for the first time. In addition, 9 more financial leasing enterprises were newly registered in this Zone in May, including China Power Industry (CPI) and (Shanghai) Financial Leasing Co., Ltd. In the first 20 days, 8 leased aircrafts are supervised in total, with a value up to USD 736 million. 06/04/2014 13:45:25
[Shu Qinfang]: Yes. As a whole, after the promotion of the first 7 measures, enterprises have been demonstrating great desire for joining in the program. As the benefits generated by those measures begin to show, plus our ongoing efforts in the popularization, we believe more enterprises will take part in the construction of the FTZ. 06/04/2014 13:46:28
[Wang Hua]: Yes, so far as I know, the introduction of those measures have captured great attention of the enterprises and had huge social repercussions. Ms. Shu, since the second batch of 7 measures will also be implemented soon, can you tell us something about them? 06/04/2014 13:47:17
[Shu Qinfang]: All right. The second batch of 7 measures all aim at facilitating customs clearance, including consolidated declaration for multiple consignments, simplification of supporting documents for clearance, reduction and unification of data elements in registration lists, selective tax levy for domestic sale, centralization of tax payment, networked monitoring of bonded-goods logistics, and smart control at checkpoint for automatic verification and release. 06/04/2014 13:48:09