The Action Plan for Accelerating Economic Recovery and Revitalization of Shanghai Q&A Featured

Tuesday, 07 June 2022 09:45

Dongjin summarizes the main points of Multiple measures would be taken to stabilize foreign investment and foreign trade:


1,Support foreign-funded enterprises to resume production and operation:

Q: We would like to declare the special fund for encouraging the development of regional headquarters of multinational companies in Shanghai in 2022, when will the application begin? How do I apply?

A: According to the requirements of documents such as the "Shanghai Municipal Measures for Encouraging the Development of Special Funds for the Development of Regional Headquarters of Multinational Corporations" and the "Supplementary Notice of Shanghai Municipality on Encouraging the Use and Management of Special Funds for the Development of Regional Headquarters of Multinational Corporations", eligible regional headquarters and global R&D centers of multinational companies can enjoy financial support. 

In 2022, the declaration of special funds for encouraging the development of regional headquarters of multinational companies in Shanghai has been started in advance, and enterprises can apply to the commerce department of the district where they are registered. After each district's declaration, third-party review, on-site inspection, review by the review meeting, credit information review, and other such procedures, the review opinions of the special funds of the headquarters for the current year are determined, and the two levels of finance in the urban area are to be allocated in proportion to the apportionment ratio.


2,Q: What measures does Shanghai take to serve and support multinational companies to set up regional headquarters and foreign-funded R&D centers in Shanghai?

A: In 2022, through policy training and various investment promotion activities, Shanghai will continue to attract multinational companies to set up headquarters and foreign R&D centers in Shanghai. By the end of April 2022, a total of 846 regional headquarters of multinational companies and 512 foreign-funded R&D centers have been established. We will optimize the services of foreign-funded enterprises, create a world-class business environment, and support multinational companies to set up headquarters and foreign-funded R&D centers in Shanghai with greater support. The first is to hold two ceremonies every year for the regional headquarters and R&D centers of multinational companies to boost the confidence of multinational companies in the development of shanghai; the second is to start the declaration of special funds for the development of regional headquarters of multinational companies in Shanghai in advance in 2022, revise the "Shanghai Regulations on Encouraging Multinational Companies to Set Up Regional Headquarters", and strengthen the policy of attracting multinational companies to set up headquarters and foreign-funded R&D centers in Shanghai; the third is to establish a service mechanism for key foreign-funded enterprises to resume work and production. Through the linkage of the two levels of urban areas, we will effectively solve the difficulties and problems encountered by foreign-funded enterprises and stabilize the development expectations of foreign-funded enterprises.


Earnestly help foreign trade enterprises to bail out:

3,Q: In the early stage, due to the epidemic situation, we incurred cargo storage fees and demurrage charges in the port, can we reduce them?

A: Since the current round of the epidemic, Shanghai has actively encouraged and guided port and shipping enterprises to reduce and waive related costs such as cargo storage fees and demurrage fees, helping upstream and downstream customers to tide over the difficulties. At present, port and shipping enterprises have successively introduced different preferential measures such as reduction and reduction of storage fees, demurrage fees, change fees, booking and cancellation fees, etc., and have released information on exemptions and exemptions through their respective platforms. In order to increase market transparency and improve the effectiveness of measures, the Shanghai Shipping Exchange has summarized and announced the preferential measures for fee reductions and fee reductions for port and liner enterprises to facilitate enterprise inquiries and handling.


Shanghai Shipping Exchange Announcement Link:

Case of Deposit Reduction and Exemption: LINK to SIPG's Announcement:

Case of demurrage fee reduction and reduction, related logistics operation fee: COSCO SHIPPING announcement link: id=50000000000 000231


4,Q: Where an enterprise declares the export business of tax rebate and obtains export credit insurance compensation because it is unable to collect foreign exchange, it shall treat the export credit insurance compensation as a receipt of foreign exchange and apply for export tax rebate. How do companies apply?

A: This policy will take effect from June 21, 2022. 

For enterprises that purchase export credit insurance in response to the impact of the epidemic and other factors, and receive insurance compensation when they are unable to collect foreign exchange, the policy of not receiving foreign exchange cannot be refunded will be adjusted to treat insurance compensation as if it were received in foreign exchange, and tax refund will be processed. This will further increase the tax refunds available to taxpayers. 

In actual operation, export enterprises shall handle it according to the normal export tax rebate business, and retain the "Table of Receipt of Foreign Exchange of Export Goods" and the evidentiary materials for future reference, which can be regarded as receiving foreign exchange. The evidentiary materials include relevant export credit insurance contracts, insurance claim documents, claims receipts, and other information.


5,Q: We are a foreign trade small and medium-sized enterprises, a prominent problem at present is the shortage of funds, what policy financial support can be obtained?

A: Shanghai will increase the support of export credit insurance, expand the coverage of small and medium-sized enterprises, optimize the conditions for underwriting claims, open an online loss reporting and claim channel in the "single window" of Shanghai international trade, and establish a premium deferral mechanism and a fast compensation mechanism. 

Support the Shanghai Branch of the Export-Import Bank of China to set up a special credit line for import and export business, establish a fast-track review channel, actively use policy-based preferential interest rate loans or strive for other preferential interest rate policies from the head office to reduce the financing costs of enterprises.


6,Q: Small and medium-sized enterprises that meet the conditions of specialization and special newness shall implement a phased fee reduction of not less than 10% on the basis of the original export credit insurance rate, and increase the support for insurance policy financing. What is the specific time period for the phased fee reduction? What are the specific measures to increase policy financing support?

A: Implement a phased fee reduction of not less than 15% (inclusive) for specialized new small and micro enterprises; implement a phased fee reduction of not less than 10% for specialized new medium-sized enterprises. For enterprises that meet the above conditions, complete the fee reduction for all eligible new and renewed policies by December 31, 2022. 

At the same time, increase policy financing support from four aspects: 

First, increase support for credit insurance financing "white list" enterprises, and constantly update the credit insurance financing "white list", so that more high-quality enterprises can enjoy the policy financing credit enhancement support that does not occupy the enterprise credit and only occupies the credit insurance credit. 

The second is to accelerate the upgrading of credit insurance inclusive financing products, screen out qualified enterprises through big data on the credit status of enterprises, upgrade the "guarantee + credit insurance + bank" financing model, and guide banks to take the initiative to grant credit to enterprises in combination with the "white list" of small and micro foreign trade enterprises. 

The third is to launch new products such as "tax guarantee financing" in combination with the new policy, and through the cooperation with banks to carry out "tax guarantee financing", the export tax rebate and export credit insurance policy will be effectively integrated, based on the average level of export tax rebates in the past period of enterprises, with the help of credit insurance policy financing credit enhancement role, increase credit products and models for enterprises. 

The fourth is to increase bank cooperation, expand the coverage of policy financing and credit enhancement, continuously increase cooperative banks, and promote banks to optimize the credit insurance policy of credit insurance policy financing and credit enhancement cooperation.


7,Q: Although the obstruction of inter-provincial logistics has eased, the cost is still at a high level, how to help foreign trade enterprises reduce transportation costs as soon as possible?

A: We continue to promote the smooth work of inter-provincial logistics from three aspects: 

First, give play to the role of the national version of the key material transport vehicle pass, strengthen coordination with major ports and foreign trade channels across the country, steadily improve the efficiency of port operations and customs clearance, and strive to ensure the smooth flow of freight goods. 

The second is to continue to do a good job in dispatching important hubs together with transportation, customs, maritime and other departments to ensure the efficient operation of important hubs. 

The third is to implement the support policies such as the phased deferral of the payment of "five insurances and one gold" and taxes in the transportation industry, and the issuance of subsidies for aiding enterprises and stabilizing posts, strengthen policy publicity, do a good job of coordination and docking, and make every effort to ensure that various support policies and measures are timely and efficiently directed to the majority of market players.


8,Q: The Shanghai branch of the Export-Import Bank of China has set up a special credit line for import and export business, how can foreign trade enterprises apply for preferential interest rate loans?

A: All domestic enterprises registered with the administrative department for industry and commerce and have independent legal personality or public institution legal persons with loan qualifications may apply for loans from the Shanghai Branch of the Export-Import Bank of China. In terms of exports, a special credit line of 30 billion Yuan was set up in the first phase, which mainly supports enterprises to export mechanical and electrical products, complete sets and high-tech products, ships, agricultural products, cultural products and other approved products and services. In terms of imports, a special credit line of 20 billion Yuan was set up in the first phase, which mainly supports enterprises to import goods, services and technologies needed to ensure the development of the national economy. For enterprises applying for loans, the Shanghai Branch of the Export-Import Bank of China will provide comprehensive financial services such as export seller credit, import credit, trade financing, letters of credit and settlement and sale of foreign exchange according to the needs of the enterprises. Enterprises shall, in accordance with the requirements of the Export-Import Bank of China Shanghai Branch, provide relevant materials including loan applications, business licenses, audited financial reports, import and export data, foreign trade orders and so on.


Efforts should be made to stabilize the expectations and confidence of foreign-funded foreign trade enterprises:

9,Q: In the past two years till now, due to the prevention and control of the epidemic, the overseas headquarters of our enterprise and the Chinese area have been inconvenient to communicate with personnel, affecting the promotion of local business, are there any convenience measures?

A: Shanghai facilitates the handling of invitation letters and entry and exit formalities for foreign employees and their families of foreign-funded enterprises stationed in Shanghai, global executives and professional and technical personnel who carry out important business activities, and important overseas customers of foreign trade enterprises. 

Shanghai Customs also provides the above-mentioned personnel with advance machine inspection services for inbound checked baggage, and completes the machine inspection of their checked baggage while handling health quarantine, reducing the customs clearance time of the above-mentioned personnel.


10,Q: I am doing foreign trade, in recent months due to the epidemic reasons some orders can not be performed in time, facing the risk of default, what to do?

A: The Shanghai Council for the Promotion of International Trade will issue free force majeure factual documents related to the new crown pneumonia epidemic for eligible and needy enterprises affected by the epidemic. The Shanghai International Arbitration Center and other relevant dispute resolution institutions provide legal advice and assistance for foreign trade enterprises to safeguard their rights, and reduce, refund and postpone the payment of eligible arbitration fees.


11,Q: In the early stage, because of poor logistics, some of our orders cannot be performed normally, and then we must speed up exports, what facilitation measures are there in terms of customs clearance?

A: Shanghai assists foreign trade enterprises to fulfill orders, implement customs clearance facilitation measures, adopt a mode in which consignees and consignees are exempt from on-site inspection, support enterprises to handle customs clearance business online, establish a green channel for customs clearance of key materials of key enterprises, and improve the efficiency of customs clearance and withdrawal of goods. 

First, the inspection operation is carried out in a "no-meeting" manner. After receiving the notice of inspection of goods, enterprises can choose "do not accompany the inspection" or "entrust the operator of the supervised work site to accompany the inspection", which is exempt from sending personnel to accompany them. 

If the consignee and consignor choose the method of "not accompanying the inspection", the customs shall carry out the inspection in accordance with the requirements of the direct inspection. If the consignee and consignee choose the method of "entrusting the operator of the supervised place to accompany the inspection", during the customs inspection, the operator of the supervised place shall move the goods in accordance with the requirements of the customs, open and reseal the packaging of the goods, and assist in completing the inspection. After the inspection is completed, the operator of the supervised place signs and confirms the inspection record sheet. The operator of the supervised premises shall not charge additional fees for accompanying inspections. 

The second is to encourage enterprises to declare online through the 'single window' and 'Internet + Customs' platform for international trade at the Shanghai port, and can also apply the 'Internet + Customs' customs district characteristic government service platform to upload various materials, make appointments for unaccompanied inspections, carry out 'active disclosure', and make appointments for factory inspections. 

The third is to expand the "green channel" of the whole industrial chain such as integrated circuits, biomedicine, and automobile manufacturing, and the scope of customs clearance facilitation measures is expanded from key enterprises to the upstream and downstream of the industrial chain supply chain, covering commodities from manufactured products to raw materials, intermediates and related manufacturing equipment.


Mike Chang Partner

Contact Us

Mr. Mike Chang



+86.21.6886 8321


+86.21.6886 8021

Connect Us