The China (Shanghai) Pilot Free Trade Zone has been officially opened on 29th Sep, 2013. It has been established based on the strategic decision by the Central Government, and is a significant measure to boost China's reform and opening up under the new circumstances. The China (Shanghai) Pilot Free Trade Zone is comprised of the four customs supervision areas, including Shanghai Waigaoqiao Bonded Zone, Waigaoqiao Bonded Logistics Zone, Yangshan Bonded Port and Shanghai Pudong Airport Free Trade Zone.
The China (Shanghai) Pilot Free Trade Zone aims to develop a framework in line with international standards to support investment and innovation activities to cultivate an internationalized business environment. The new policy are considered based on convenient investment and trading procedure, full convertibility of currencies, effective and efficient goods supervision, and investor-friendly regulatory environment.
The China (Shanghai) Pilot Free Trade Zone establishes an appropriate regulatory environment for supervision and tax. An innovative supervision model will be created to facilitate smooth transactions for all goods and services under a highly transparent administrative system within the China (Shanghai) Pilot Free Trade Zone and to promote opening up in service sectors and further development in goods trade. Meanwhile, under the premise of keeping a fair, consistent and standardized current tax system, related policies for the purpose of functional development will be improved.
Within the Pilot Free Trade Zone, there will pilot RMB capital account convertibility, interest rate liberalization, and the cross-border use of RMB. By opening the Pilot FTZ, China leadership targets increasing competitiveness with South Eastern Nations also in its Customs Regulations Framework.
Easing of rules represents a 10-year event in the course of further opening market access. Due to its established friendly conditions to overseas investors, Shanghai won the race to host the first Pilot FTZ.
Until end of Nov 2013, the Pilot FTZ already 1779 companies have registered, representing a total investment of 42,63 billion RMB / 5,2 billion EUR.
For companies importing to China, the Pilot FTZ offers opportunities to ease Customs Procedures, reducing risk and port/airport warehouse storage fees. Simplify the import supervision model to realize "Frontier Opening" and strictly enforce “Second-tier Effective and Efficient Control”. Enterprises are allowed to bring goods into the China (Shanghai) Pilot Free Trade Zone with import manifests before completing the customs declaration formalities with entry and exit record list. The Customs administration process will be optimized while the administration of "frontier" (i.e. goods flow between overseas and the zone) and "second-tier" (i.e. goods flow between the zone and other domestic areas) will be coordinated by improvement on e-information network, entry and exit record lists cross check, accounting books management, physical verification, and risk analysis. An inspection and quarantine model of "easy import and export, with strict quality and safety risk control" will be promoted.
Further information can be obtained within a one-day seminar which will provide a detailed overview of key import, export, and government licensing controls affecting companies doing business in China with a special focus on aspects affecting companies implementing global customs and trade compliance processes, taking advantage of the Shanghai Pilot Free Trade Zone.