New methods applied to promote foreign trade increase by Chinese Authorities

On 16th September, 2012, the State Council released “Suggestions on the Promotion of a Stable Growth in Foreign Trade”, in which two points are highlighted as following:

(a)Speed up the relevant processes, reduce the relevant fees. For example, extend the scope of territorial declaration and port clearance under effective supervision; waive the printing costs for paper of verification of export earnings, import payments and the drawback copy of export declaration; waive the custom supervision cost.

(b)Optimize the structure of trade, mainly including encourage the imports of advanced technological equipments, key parts and components and daily necessities that are closely related to people’s everyday life; encourage the local governments, industry committees and entities to hold exhibitions in the emerging market and carry out promotion activities; encourage the entities to set up the international marketing network; expand the export of technology, capital intensive mechanical and electrical products, high technology high value-added products and energy conservation and environmental protection products; lead the processing trade to move from coastal cities to inland cities, and centralize to the special custom supervised area.

In accordance with this regulation, “Measures on Promotion of a Stable Growth in Foreign Trade by General Administration of Customs”(No. 45, 2012 by General Administration of Customs), and “Notice of the State Administration of Taxation on Suggestions on the Promotion of a Stable Growth in Foreign Trade”(No.432 [2012] of the State Administration of Taxation) have stipulated the detailed provisions in terms of customs and taxation. Prospect is that the relevant departments such as the State Administration of Foreign Exchange will release the relevant regulation details very soon.