Shanghai Government stated the implementation suggestions on the high-quality promotion of Comprehensive Bonded Zones on January 6^th, 2021 in order to enhance the fundamental function of Comprehensive Bonded Zones to build an open economy with higher quality. Details as follows:

1. Promotion for the industrial upgrade of Comprehensive Bonded Zones

• Upgrade the function position. Clearly states the function position of each Comprehensive Bonded Zone within the city, enhance the industrial cooperation, help and promote the regional economic development.
• Support the construction of Comprehensive Bonded Zones. Sufficiently use the existing fund channels of the government, push the introduction of significant project, reconstruction of storage resources, construction of significant functional platform and pilot of big innovation within the Comprehensive Bonded Zones.
• Strengthen the land protection. Keep the scale and character of lands within the Comprehensive Bonded Zones stable, for those projects of industrial lands with 50 years of need within the Comprehensive Bonded Zones they shall prevail under the same condition for supports.
• Revitalizing of storage resources. Encourage the Comprehensive Bonded Zones to explore the market mechanism as the deep development and utilization of storage resources construction project, for those enterprises which introduce high-quality industrial project it could be given some corresponding supports.
• Strengthen indicating protection as energy consumption. District governments shall provide supports for energy consumption indication and main pollution amount indication within the district, for those significant project with high-quality but there would be big amounts of energy consumption and pollution and the situation would be hard to balanced, it shall bring on to the Shanghai Government for further support.
• Work on comprehensive regional evaluation, especially for the fields of environment, water resources and geologic hazard.
• Support enterprises for research and innovation as bonded researching digital accounting books. Further innovate and develop new model of material to facilitate customs clearance regulations based on the modern information technologies and methods.
• Develop for global maintenance business. Actively try to put more productions into the bonded maintenance production list and duly adjust the prohibited import old mechanics and equipments list.
• Support enterprise within the Comprehensive Bonded Zones to become AEO. Put more cultivations and trainings for AEO identification for the regional enterprises, and speed up the identification process for newly application of AEO.

2. Show the strategy connection function of the unification for domestic and oversea trades

• Upgrade the pilot policy for VAT general payer. Administration authority shall actively support those enterprises in need to apply for the pilot for VAT general payer, and the period of pilot policy shall be determined according to the actual business change of the enterprise.
• Support enterprises to open domestic market, or open the domestic and oversea trade business in the same time, and provide intellectual property law consulting services as brand licensing for enterprises with domestic sales of commodities originally produced for exports.
• Support those enterprises to build the global distribution center. Use more informationization and intelligence to improve the efficiency and convenience of supervision under the circumstance that the risk stays under control.
• Support the innovative development of the Yangshan Special Comprehensive Bonded Zones to promote the interconnected development of finance, trade and manufacturing. Accelerate the development of offshore trade, international bulk commodity trading, financial leasing, cross-border e-commerce, and high-end bonded display and trading of consumer goods with the help of financial support policies such as the integration of local and foreign currencies.
• Promote the joint development of the Comprehensive Bonded Zones in the Yangtze river delta. Further promote the implementation of the facilitation measures for the transfer of bonded goods across the regions, actively explore and promote the integration of the logistics supervision, inspection standards and bonded supervision, and promote the coordinated development of bonded goods.

3. Enhance the protection measures for the development of Comprehensive Bonded Zones

• Provide more financial support. Encourage the cooperation between policy-based financial institution, insurance, bonding company and the management authority of the Comprehensive Bonded Zones, develop targeted financial products, innovate financial support methods, and further serve the needs of the healthy development of enterprises in the Comprehensive Bonded Zones.
• Optimize the business environment. Support the Comprehensive Bonded Zones to further reduce enterprise costs, optimize comprehensive supervision, and improve surrounding transportation and necessary living facilities.
• Strengthen the performance evaluation to improve the scale, quality and efficiency, improve the utilization rate of land development, enhance the radiation service level and accelerate industrial business innovation.
• Promote and popularize the experience. Let the Pilot Free Trade Zones to take the lead in promoting their innovative experiences in high-end manufacturing, R&D, design, logistics distribution, testing, maintenance, sales and services, and the lead in replicating their measures in investment, open trade, facilitation, financial services, tax administration and comprehensive supervision in the Comprehensive Bonded Zones.

Relevant policies could be referred to for Waigaoqiao Bonded Zone according to its actual situation.

This Implementation Suggestion would be effective from the date of January 15^th, 2021.

If you want to read the complete article, you can refer to the below link (in Chinese only): http://www.shanghaiinvest.com/cn/viewfile.php?id=15873

If you have any question, please contact me. 

Mr. Mike Chang (Partner)

TEL: 0086-21-68868321

Email: mikechang@shanghaiinvest.com