New Business Forms and Patterns are the significant trends for international trading nowadays. The State Council issued this Suggestion Plan in order to deepen the “Decentralization-Control-Service” reform and also push the innovations of the system, management, service, form and pattern within the domain of foreign trade. Four areas are highlighted in this Suggestion Plan.

Ⅰ   Application for new technologies and tools

• Promote the application of digital intelligent technologies such as digital exhibition, social e-commerce, product crowd funding and big data marketing, and establish a new marketing system with online and offline integration and also domestic and foreign connection.
• Guide enterprises to make good use of the value-added tax and consumption tax exemption policies for cross-border e-commerce retail exports and the measures for the verification and collection of income tax by 2025.
• By 2025, promote the construction of comprehensive cross-border e-commerce pilot zones and form a development pattern with its own characteristics.
• About 100 overseas warehouse enterprises with outstanding performance would be cultivated by 2025.
• By 2025, a new foreign trade logistics network with global and coordinated development relying on overseas warehouses would be established.

Ⅱ  Transformation and upgrade for traditional foreign trade

• Support traditional foreign trade enterprises to use advanced technologies as cloud computing, artificial intelligence and virtual reality to form a new foreign trade industrial chain and supply chain system.
• By 2025, cultivate about 10 integrated domestic and foreign trade markets with an export of more than RMB 100 billion Yuan, and also build a number of well-known brands.
• Improve the facilitation of market procurement and trade to achieve the traceable source, controllable risk and due responsibility. Continually implement the pilot policies of simplifying customs declaration and the exemption from VAT for goods exported by market procurement trade.

Ⅲ  Specific development for foreign trade services

• Further implement and improve the "double punishments" mechanism of the customs.
• Improve the development of bonded maintenance business and dynamically adjust the list for maintenance products.
• Steadily promote the development of offshore trade and encourage banks to explore the business authenticity audit.
• Share the innovation in the fields as marketing, payment, delivery, logistics, quality control, and form a number of foreign trade subdivision service platform enterprises with strong international influence by 2025.

Ⅳ  Protection system for policies

• Innovate supervision methods according to the needs of the development of foreign trade forms, and strengthen supervision over tax evasion, fake and shoddy products, and false transactions.
• Implement fiscal and tax policies and let those special funds and guiding funds to support the new forms and patterns.
• Increase financial support and deepen the cooperation between government, bank and enterprise.
• Support more qualified banks and payment institutions to provide settlement services for enterprises in new business forms and patterns of foreign trade.

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Mr. Mike Chang (Partner)

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Email: mikechang@shanghaiinvest.com