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A new area of the free trade zone is here! International transportation is highly open, expanding coastal belts and international ship registration!China logistics

Aug 09 2019

China (Shanghai) Pilot Free Trade Zone
Overall plan of Lingang New Area

     The establishment of the Lingang New Area of ​​China (Shanghai) Pilot Free Trade Zone (hereinafter referred to as the new area) is a major strategic deployment of the Party Central Committee with Comrade Xi Jinping as the core to make overall and scientific decisions. An important measure with an open and clear attitude and proactively leading the healthy development of economic globalization. This plan is formulated in order to thoroughly implement the spirit of General Secretary Xi Jinping's important speech during the first China International Import Expo, and to promote all-round high-level opening in a deeper, wider field, and with greater efforts.China logistics

I. General requirements

    (1) Guiding ideology. Guided by Xi Jinping's thoughts on socialism with Chinese characteristics in the new era, fully implement the spirit of the 19th National Congress of the Communist Party of China and the 2nd and 3rd Plenary Sessions of the 19th CPC Central Committee, adhere to the concept of new development, adhere to high-quality development, and promote quality change, efficiency change and momentum Change, benchmarking the internationally recognized freely competitive free trade zone, choose key areas where national strategic needs, high international market demand, and high openness requirements are not yet available in other regions, and implement a strong international market Competitive open policies and systems, increase the risk pressure test of an open economy, and realize the convenience of new areas and overseas investment and operation, free in and out of goods, convenient capital flows, highly open transportation, free practice of personnel, and fast and convenient information communication, to create more Special economic functional areas with international market influence and competitiveness, proactively serve and integrate into major national strategies, and better serve the overall strategic layout of opening up.

    (2) Development goals. By 2025, a more mature investment and trade liberalization and facilitation system will be established, a group of more open-ended functional platforms will be gathered, and a number of world-class companies will be gathered. Regional creativity and competitiveness will be significantly enhanced. The volume jumped sharply. By 2035, a special economic function zone with strong international market influence and competitiveness will be established to form a more mature and stereotyped institutional achievement, create the core function of global high-end resource element allocation, and become an important carrier for China's deep integration into economic globalization.

    (3) Planning scope. New areas will be set up in the area south of Dazhi River in Shanghai, east of Jinhui Port, and on the south side of Xiaoyangshan Island and Pudong International Airport. In accordance with the principle of "overall planning and step-by-step implementation," Nanhui New City, Lingang Equipment Industrial Zone, Xiaoyangshan Island, and Pudong Airport on the south side will be activated first, covering an area of ​​119.5 square kilometers.

The development and utilization of the new area must comply with laws and regulations on land, non-resident island use and ecological environment, urban and rural planning, and meet the relevant requirements for economical and intensive use of resources; support the processing of reasonably necessary sea in accordance with relevant national regulations and procedures.

Establishing an Institutional System Focused on the Liberalization of Investment and Trade

      On the basis of applying the various open and innovative measures of the Pilot Free Trade Zone, the new zone will support the promotion of investment and trade liberalization and facilitation by focusing on freedom of investment, trade, capital, transportation, and employment.

    (4) Facilitating investment and management for fair competition. Drawing on the common practices of free trade zones in the world, implementing a foreign investment security review system, increasing opening up in key areas such as telecommunications, insurance, securities, scientific research and technical services, education, health, and relaxing restrictions on registered capital and investment methods, Promote fair competition among various market entities. Explore the trial registration and confirmation system for commercial entities, respect the civil rights of market entities, and conduct formal review of documents submitted by applicants. In-depth implementation of the "separation of licenses and licenses" reform. Support new areas to strengthen the construction of international commercial dispute trial organizations. Allow overseas well-known arbitration and dispute resolution institutions to be registered with the judicial administrative department of the Shanghai Municipal People's Government and reported to the judicial administrative department of the State Council for the record, establish business institutions in the new area, and conduct arbitration business on civil and commercial disputes in the fields of international commercial affairs, maritime affairs, investment , In accordance with the law, to support and guarantee the application and implementation of temporary measures such as property preservation, evidence preservation, and behavior preservation by Chinese and foreign parties before and during arbitration.

    (5) Implementing high standards of trade liberalization. Set up a physical fence area in the new zone, and establish a Yangshan special comprehensive free trade zone as an important carrier to benchmark the internationally recognized and most competitive free trade zone. Based on the comprehensive implementation of the comprehensive free trade zone policy, unnecessary trade supervision will be cancelled. , Licensing, and procedural requirements to implement higher levels of trade liberalization and facilitation policies and systems. For goods arriving or departing from the physical fence area overseas, explore the implementation of a supervision model that focuses on safety supervision and reflects higher levels of trade liberalization and facilitation, improve the efficiency of port supervision services, and strengthen the function of an international transit hub. Support new areas to develop key industries with international competitiveness, and actively explore appropriate customs supervision systems in accordance with the business characteristics of enterprises. The relevant supervision policy system shall be formulated separately by the General Administration of Customs. Promote the liberalization of service trade, accelerate the development of capital and technology-intensive service trade such as cultural services, technology products, information communications, and health care, innovate cross-border e-commerce service models, and encourage cross-border e-commerce companies to establish international distribution platforms in new areas. According to the reform process of oil and gas system and the needs of the industry, we will study to grant qualifications for crude oil import to qualified enterprises in the new area.

    (6) Implement a cross-border financial management system to facilitate collection and payment of funds. Under the premise of controllable risks, in accordance with laws and regulations, and drawing on internationally accepted financial regulatory rules, we will further streamline the process of cross-border RMB business for high-quality enterprises and promote the facilitation of cross-border financial services. Research and carry out a pilot program of the integration of free trade accounts with local and foreign currencies, and explore free capital inflows and outflows and free exchange in new areas. Support enterprises in the new area to carry out cross-border financial activities in accordance with laws and regulations in accordance with international prevailing rules, and support financial institutions to provide cross-border bond issuance for enterprises and non-residents in the new area on the premise of legal compliance, risk controllability, and commercial sustainability. Cross-border financial services such as cross-border investment mergers and acquisitions and centralized operation of cross-border funds. The funds raised by enterprises in the new area from overseas, the funds raised by qualified financial institutions from overseas, and the income from the provision of cross-border services can be used independently for operating investment activities in the new area and abroad. Support qualified financial institutions to carry out cross-border securities investment and cross-border insurance asset management businesses. In accordance with the principles of national overall planning, service entities, controllable risks, and step-by-step advancement, the capital account convertibility has been steadily promoted. First try the measures to open the financial industry to the outside world, actively implement measures such as easing the proportion of foreign investment in financial institutions, and expanding the business scope of foreign financial institutions, and support qualified foreign investors to establish various types of financial institutions in accordance with the law to ensure equality between Chinese and foreign financial institutions Business. Authorized by the national financial management department to use scientific and technological means to improve financial service levels and supervision capabilities, establish a unified and efficient financial management system and mechanism, and effectively prevent financial risks.

    (7) Implement highly open international transport management. Improve and expand the functions of global hub ports, strengthen exploration in areas such as coastal belting, international ship registration, and opening of international air traffic rights, and improve the ability to gather and allocate international routes and cargo resources. Gradually release the statutory survey of ships. Under the premise of ensuring effective supervision and controllable risks, those domestically manufactured vessels registered in "China Yangshan Port" for international transportation shall be deemed as exports and export tax refunded. Further improve the tax refund related policies at the port of departure, optimize the supervision process, expand the effect of the implementation of the policy of coastal piggybacking of Chinese-funded flag carriers, and study the principle of reciprocity to allow foreign international vessels to carry out foreign trade container coastal piggybacking business with Yangshan Port as an international transit port . Promote Pudong International Airport and the countries and regions along the “Belt and Road” to expand airway arrangements, including fifth freedom rights, and attract relevant national and regional airlines to open stopping routes. Support Pudong International Airport to explore aviation transit and consolidation business. With Yangshan Deepwater Port, Pudong International Airport and Luchaogang Railway Container Center Station as carriers, it promotes the sharing of shipping, air and rail transportation information, and improves the operating efficiency of multimodal transport.

    (8) Implement free and convenient personnel management. Relax the restrictions on the employment of high-end talents in the modern service industry, and implement more open and convenient policies and measures in the areas of entry and exit of personnel and permanent residence of foreign talents. Establish a work permit system and a talent visa system for foreigners in the new area. Qualified professionals in the fields of finance, architecture, planning, and design with overseas professional qualifications are allowed to provide services in the new area after filing. Their overseas experience can be regarded as domestic experience. In addition to national sovereignty and security, foreigners are allowed to apply to participate in China's relevant professional qualification examinations in new areas. Explore the development and strengthening of technical cooperation in forensic toxicology forensic identification and environmental damage forensic identification. To provide more convenient visas and residence permits for foreigners who are engaged in business, exchanges, visits and other economic and trade activities in the new area. Formulate and improve policies and management methods for overseas talent introduction, and grant high-level overseas talents such as scientific research and innovation talents and teams to apply for work permits and permanent or long-term residence procedures as "green channels". Explore the implementation of the quota system for foreign personnel to provide more convenient services for foreign talents urgently needed by registered enterprises in the new area.

    (9) Implement the cross-border safe and orderly flow of international Internet data. Building complete international communication facilities, accelerating the construction of next-generation information infrastructure such as 5G, IPv6, cloud computing, Internet of Things, and Internet of Vehicles, improving broadband access capabilities, network service quality, and application levels in new areas, and building a safe and convenient international Internet Data dedicated channel. Support the new area to focus on key areas such as integrated circuits, artificial intelligence, biomedicine, headquarters economy, etc., and conduct pilot security assessments of data cross-border flows, establish data protection capability certification, data circulation backup reviews, cross-border data circulation, and transaction risk assessment. Safety management mechanism. Carry out pilots of international cooperation rules, increase protection of patents, copyrights, business secrets and other rights and data, and actively participate in leading global digital economic exchanges and cooperation.

    (10) Implement a tax system and policies with international competitiveness. Special tax policies shall be implemented for goods entering into the physical fence area overseas, and for goods transactions and services between enterprises in the physical fence area. Expand the scope of application of the new area service export value-added tax policy, and study the new area tax policy that is suitable for overseas investment and offshore business development. Eligible enterprises in key areas such as integrated circuits, artificial intelligence, biomedicine, and civil aviation, which are qualified in the new area, are engaged in the production and research and development of key links, and the enterprise income tax will be levied at a reduced rate of 15% within 5 years from the date of establishment. Investigate and implement the subsidy policy for personal income tax differentials for overseas talents. Exploring tax policy arrangements for pilot free trade accounts without causing tax base erosion and profit transfer.

Establishing a comprehensive risk management system

        With risk prevention and control as the bottom line, and based on classified supervision, coordinated supervision, and intelligent supervision, comprehensively improve the level of risk prevention and safety supervision.

    (11) Strengthen supervision in key areas. Establish an integrated information management service platform covering new area management agencies, industry authorities, enterprises in the area and related operating entities. Focus on investment, trade, finance, internet, ecological environment, cultural security, personnel entry and exit, anti-terrorism and anti-splitting, public ethics and other key areas, and further improve management measures such as foreign investment security review, antitrust review, industry management, user certification, behavior auditing, etc. To strengthen the application of information technology in risk research and judgment and prevention and control, establish a joint prevention and control mechanism, and implement strict supervision, precise supervision and effective supervision. Establish a precise risk monitoring mechanism in special areas such as quarantine, origin, intellectual property, international conventions, cross-border funds, etc., to realize real-time risk monitoring and dynamic early warning management of the entire process.

     (12) Strengthen credit management. We will improve the basic rules and standards for credit evaluation, implement the appropriateness management of operators, and follow the principle of "compliance with laws and regulations", and take credit ratings as an important basis for enterprises to enjoy preferential policies and institutional convenience. Establish a proactive disclosure system, and implement a system for the disclosure of untrustworthy lists, market bans and exits. The business registration cancellation system shall be improved. For those who have obtained registration by improper means such as fraud or bribery, the registration authority may cancel the registration according to law.

      (13) Strengthen border security. Establish high-level intelligent supervision infrastructure to realize mutual recognition and sharing of supervision information. Keep the "first-line" national security and "second-line" economic and social security. Strengthen inbound safety management and implement a “two-stage access” supervision model for inbound goods in new areas. If there are major emergencies or risks that are difficult to control after release such as nuclear and biochemical detonation, drugs, etc., major epidemic situations, high-risk commodity safety, and laws and administrative regulations that have clear requirements, the implementation of "permission permit" supervision shall be implemented in accordance with the law. For non-high-risk commodity inspection, risk-controllable quarantine and other risks, “qualified market entry” supervision can be implemented according to law.

Construction of an open industrial system with international market competitiveness

        Give play to the advantages of an open system, promote the integration of international business, cross-border financial services, cutting-edge technology research and development, and cross-border service trade and other functions, and strengthen the function of an open economy. Accelerate the transformation and upgrading of existing enterprises and raise the overall industrial energy level in the region.

       (14) Establishing cutting-edge industrial clusters with key core technologies as breakthroughs. Establish a comprehensive integrated circuit industrial base, optimize the entire bonded bonded supervision model of imported materials, support multinational companies to set up offshore R & D and manufacturing centers, and promote the development of key areas such as core chips, special processes, key equipment and basic materials. Construct artificial intelligence innovation and application demonstration zones, accelerate the opening of application scenarios, and promote the development of new industries and new formats such as smart cars, smart manufacturing, and smart robots. Build a civil aviation industry agglomeration area, with large passenger aircraft and civil aero engines as the core, accelerate the agglomeration of supporting industries such as basic research, technology development, product development, test and verification, and promote aviation assembly and delivery, production support, operation and maintenance, and cultural services. Industrial chain development. Establish maintenance and green remanufacturing centers for countries and regions along the “Belt and Road”, establish a green certification and rating system, support the inbound maintenance and remanufacturing of CNC machine tools, engineering equipment and other products in the comprehensive bonded zone, and promote the international high-end intelligent remanufacturing industry Competitiveness.

       (15) Developing new international trade. Establish a Asia-Pacific supply chain management center, improve the systematic support system for new types of international trade and international market investment and financing services, and attract headquarters-type institutions to gather. Develop cross-border digital trade and support the establishment of cross-border e-commerce overseas warehouses. Establish an international medical service gathering area, support cooperation with overseas institutions to develop cross-border medical insurance products, and carry out international medical insurance settlement pilots. Eligible wholly foreign-owned enterprises are allowed to conduct global art exhibitions, auctions and transactions.

(16) Construction of a high-energy global shipping hub. Support Pudong International Airport to build a world-class aviation hub, build an air cargo station with integrated functions of logistics, sorting, and supervision, and build a regional aviation headquarters base and an international hub for air express services. Promote the comprehensive implementation of intermodal transportation of international passengers and their luggage. Establish an international shipping replenishment service system, and improve the comprehensive service capabilities of ship and aviation supplies supply, maintenance, spare parts, fuel oil, etc. Support domestic and foreign-funded enterprises and institutions to provide services such as shipping financing, shipping insurance, shipping settlement, aviation materials leasing, shipping transactions and shipping arbitration, explore the development of shipping index derivatives business, and improve the function of high-end shipping services.

       (17) Expand the functions of cross-border financial services. Vigorously enhance the ability of RMB cross-border financial services and expand the depth and breadth of RMB cross-border financial services. Support the development of RMB cross-border trade financing and refinancing business. Multinational companies are encouraged to set up global or regional capital management centers. Accelerate the development of financial leasing businesses such as aircraft and ships, and encourage the development of green financial businesses such as environmental pollution liability insurance.

       (18) Promote the integration and development of industry and city. Further broaden the channels for international high-quality capital and experience to enter the public service areas such as education, medical care, culture, sports, park construction, and city management, strengthen the management of various types of infrastructure construction in new areas, and enhance the function of high-quality internationalized city services.

       (19) Strengthen the collaborative innovation development with the Yangtze River Delta. Support domestic and foreign investors to set up joint innovation special funds in new areas, cooperate on major scientific research projects, and allow related funds to be used freely in the Yangtze River Delta region. Support private equity funds initiated by domestic investors overseas to participate in the financing of innovative technology companies in new areas, and those who qualify can invest in the Yangtze River Delta. Support the expansion of advantageous industries in new areas to the Yangtze River Delta to form industrial clusters.

V. Speed ​​up implementation

         The new area is managed with reference to the special economic zones. Relevant national departments and Shanghai should strengthen the construction of the rule of law and the prevention and control of risks in accordance with the requirements of the overall plan, earnestly maintain national security and social security, and solidly promote the pilot tasks of various reforms.

       (20) Strengthen Party leadership. Strengthen the "four consciousnesses", strengthen the "four self-confidences", achieve "two safeguards", cultivate and practice the core values ​​of socialism, and keep the party's construction throughout the entire process of planning and construction of new areas, and bring the party's political advantages The organizational advantage is transformed into a strong guarantee for comprehensively deepening reform and expanding opening up in new areas.

      (21) Increase empowerment. The new area is given greater independent development, independent reform and independent innovation management authority, and the new area management agency is authorized to independently carry out innovative business close to the market on the premise of controllable risks. The reform and opening up measures in the new area, which involve the adjustment of existing laws or administrative regulations, shall be implemented in accordance with legal procedures with the unified authorization of the National People ’s Congress or the State Council.

      (22) Promote a new round of reform and opening up in the Yangtze River Delta. Regularly summarize and evaluate the system experience of the new area in investment management, trade supervision, financial opening, talent flow, transportation management, risk management and control, formulate promotion lists, define the scope of promotion and regulatory requirements, and promote the implementation in an orderly manner after reporting for approval. Strengthen the linkage between the new areas and the special customs supervision areas and economic and technological development zones to amplify the effects of radiation.

      (23) Quickly organize and implement. Relevant state departments have further delegated power to Shanghai and the central units in Shanghai, and support and guide the formulation of relevant implementation rules in accordance with the overall plan.

        Shanghai should earnestly fulfill its main responsibilities, build new areas with high standards and high quality, speed up the formation of a mature and stereotyped system and management system, and better stimulate market participants' participation in the international market. Significant matters shall be reported to the Party Central Committee and the State Council in a timely manner.

Source: Shipping Network

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