Offshore trade pilot area to be established at the Yangpu economic development zone

China’s national offshore trade pilot area is to be established at the Yangpu economic development zone in Hainan province.

The Hainan Yangpu economic development zone will establish a national offshore trade pilot area with a view to improving entry and exit management systems, according to the zone’s management committee.

The area will promote pilot trade liberalisation and investment facilitation policies in areas such as trade, finance and local currency settlement.

A public service platform for offshore trade will also be built to gradually improve the regulatory system for trade, logistics, capital and information to build a domestic and international supply center and cross-border logistics channel.

(An offshore trading company is an affiliate or subsidiary company set up in a foreign country with relatively low taxes, which imports products produced by the parent company and exports them to other countries. The establishment of offshore trading companies can help a corporation to avoid tariffs and duties targeted at destination markets, by routing trade goods through a region with less restrictive trading policies.)

To further facilitate international trade, a “single-window” service will be implemented in Yangpu bonded port area as a trial to promote data collaboration, simplify and standardise processes and collect logistical and monitoring information for inter-recognition. The port clearance time will be reduced substantially to meet international standards.

In terms of international shipping, the application scope of coastal piggyback and on-board transportation of domestic and foreign trade products will be expanded to reduce logistics costs. Qualified oil companies will be supported in supplying bonded oil for international shipping.

(“Coastal piggybacking” refers to foreign vessels engaged in foreign trade between China’s coastal ports in the domestic section of container transport of heavy boxes)

In terms of international energy trading, refined oil export quotas will be relaxed for energy exchange dealers, who are encouraged to apply for non-state-owned crude oil import qualifications.

Yangpu will promote the construction of a new shipping hub for international land and sea trade this year, adding more than one foreign trade route from Yangpu to Southeast Asia. This is expected to attract Southeast Asian goods to transit via the Yangpu port.

Source: China.org.cn