(March 31, 2023)

SMPG GO D [2023] No. 9

Attention: all District People’s Governments, all Commissions, Offices and Bureaus (Administrations) of the Municipal People’s Government, and all relevant units:

Several Policies and Measures of Shanghai Municipality to Further Stabilize the Scale of Foreign Trade and Improve Its Quality were approved by the Municipal People’s Government and are hereby issued to you. You are required to implement them conscientiously.

Several Policies and Measures of Shanghai Municipality to Further

Stabilize the Scale of Foreign Trade and Improve Its Quality

With a view to thoroughly implementing the guiding principles established at the 20th CPC National Congress, vigorously supporting this Municipality’s effort to stabilize foreign trade and improve its quality, and consolidating and amplifying the momentum of stable and sound economic growth, several policies and measures are formulated as follows:

I. Promoting Stable Growth of Foreign Trade Scale

1.Supporting stable development of key foreign trade enterprises. A special campaign of “Four Top 100” will be carried out in a deep-going way, and a new list will be formulated of 100 export enterprises, 100 import enterprises, 100 new-business-form enterprises and 100 own-brand enterprises in foreign trade, and supportive policies on facilitation of customs clearance, foreign exchange and tax rebates shall be strengthened. For export-oriented enterprises classified as Type 1 or Type 2 in terms of export tax refund (or exemption), their time spent on normal export tax refund shall be shortened to three working days on average, and their export credit insurance indemnity shall be deemed as foreign exchange collection, which is entitled to “no-need-to-apply” privilege for application for export tax refund. Various types of enterprises are encouraged to set up commercial headquarters in Shanghai, which, upon verification, will enjoy facilitation support in their talent settlement, financing guarantee, and entry-exit administration. All districts are encouraged to support such enterprises in their starting of businesses, housing renting, etc. in accordance with laws, rules and regulations, and to reward relevant enterprises which have made outstanding contributions to regional economic development within their statutory authority. (Units responsible for implementation: the Municipal Commission of Commerce, Shanghai Branch of the China Export & Credit Insurance Corporation (Sinosure Shanghai Branch), the Municipal Tax Service, Shanghai Customs, Shanghai Branch of the State Administration of Foreign Exchange, Shanghai General Station of Immigration Inspection, and all district people’s governments)

2. Leveraging the role of key industries in imports and exports. Mechanical and electrical enterprises and high-tech product enterprises are supported to expand into a diversified market, and to put in more efforts to tap market. Qualified automobile manufacturing enterprises are supported when they apply for automobiles export licenses on a short notice. Qualified products including new energy automobiles transported by China-Europe Freight Express are exempt from hazardous cargo administration. Research shall be made to advance the construction of China-Europe Freight Express supervision areas so as to further consolidate the foundation for their operations. The pilot program on innovation in supervision for the development of the integrated circuit industry will be advanced, and more pilot enterprises are encouraged to utilize such models as in-advance declaration, two-step declaration, and taxation on aggregate proceeds, in order to speed up customs clearance. For medical device products under the “entrepot trade” model with both resources and markets abroad, there is no need to label in Chinese on their entry into customs special supervision areas or bonded logistics centers. The list of pilot enterprises for parallel import of automobiles and export of second-hand vehicle shall be dynamically adjusted. Qualified service platforms of second-hand vehicle exporting are supported in their application for registration of vehicle transfer for exportation. (Units responsible for implementation: the Municipal Commission of Commerce, the Municipal Finance Bureau, Shanghai Customs, the Municipal Medical Products Administration, the Municipal Transportation Commission, the Municipal Commission of Economy and Informatization, the Municipal Public Security Bureau, China Railway Shanghai Group Company, Pudong New Area People’s Government, and Minhang District People’s Government)

3. Reasonably scaling up imports. The national funds dedicated to the development of foreign trade shall be utilized to enhance the capacity of importing energy mineral resources required for the development of new energy technologies and important agricultural products. Qualified enterprises are encouraged to apply for import tariff quotas for such agriproducts as grain and cotton. The construction of national innovation demonstration zones for import trade promotion such as Waigaoqiao Bonded Zone and Hongqiao Business District shall be advanced, and plans for the construction of the “Shanghai Huaihai-XinTiandi” - a national innovation demonstration zone for import trade promotion - shall be formulated so as to attract internationally renowned trading enterprises to cluster in this zone. Also, “demonstration zones of imported quality products” will be constructed. The “6+365” trading service platform of Shanghai Trading Group of the China International Import Expo (CIIE) will be dynamically adjusted to amplify the spillover effect of the CIIE. (Unit responsible for implementation: the Municipal Commission of Commerce, the Municipal Development & Reform Commission, the Municipal Finance Bureau, Shanghai Hongqiao International Central Business District Administrative Committee, Huangpu District People’s Government, and China (Shanghai) Pilot Free Trade Zone Administration)

4. Optimizing financing support for foreign trade enterprises. Commercial banks are encouraged to support foreign trade enterprises facing temporary difficulties, upon the latter’s applications, with such measures as extension of the length of loan maturity, deferred interest payment, and loan renewal without repayment of the principal sum, and to waive interest penalties on enterprises that satisfy the conditions for deferred payment of interest. Also, commercial banks are encouraged to continue to cut back or cancel fees and charges on foreign trade enterprises, such as service charges on their bank accounts, and settlement charges on them. Shanghai Branch of the Export-Import Bank of China (Exim Bank) has set up a credit line of RMB 150 billion yuan dedicated to foreign trade and a credit line of RMB 200 billion yuan dedicated to imports from member countries of the Regional Comprehensive Economic Partnership Agreement (RECP). Shanghai Branch of the Export-Import Bank of China is supported to further scale up loans to foreign trade enterprises at preferential interest rates, and take advantage of policy-based financial resources to increase support for such new forms of foreign trade as cross-border e-commerce and configuration of overseas warehouses in countries along the “Belt and Road”. The model of financing and credit enhancement against insurance policy shall be upgraded, and the Shanghai International Trade “Single Window” shall be used to achieve processing of online financing applications, and to voluntarily grant credit lines to prime foreign trade enterprises on an experimental basis. (Units responsible for implementation: Shanghai Head Office of the People’s Bank of China, Shanghai Office of China Banking and Insurance Regulatory Commission, the Municipal Commission of Commerce, the Municipal Finance Bureau, the Municipal Financial Regulatory Bureau, Shanghai Branch of the Export-Import Bank of China, and Sinosure Shanghai Branch)

5. Increasing support for credit insurance. Sinosure Shanghai Branch shall expand its coverage of export credit insurance, enhance protection of orders against pre-shipment cancellation risks, and support no less than 10,000 foreign trade enterprises with an insurance coverage of no less than USD 50 billion and a credit limit fulfillment rate of no less than 90 percent per year. Besides, support shall continue to be provided to eligible micro, small and medium-sized foreign trade enterprises in their application for credit insurance. Sinosure Shanghai Branch shall also leverage its global credit insurance risk information database to provide micro, small and medium-sized foreign trade enterprises with free risk inquiry service about their overseas customers. Moreover, a “green-channel” scheme for claim settlement shall be put in place, under which, loss assessment, claim settlement and payment shall be first made before in-depth investigation and claiming reimbursement in subrogation if the case satisfies the requirements, non-crucial factors have been put aside, and the facts of the trade have been ascertained. (Units responsible for implementation: Sinosure Shanghai Branch, the Municipal Commission of Commerce, and the Municipal Finance Bureau)

6.Strengthening support for micro, small and medium-sized foreign trade enterprises. Banking institutions are encouraged to provide differentiated loan extensions for micro and small foreign trade enterprises, and to promote voluntary credit granting and models of self-service loan and repayment as needed, and online loan renewal products. Small and medium-sized foreign trade enterprises are supported to file, through “Shanghai Electronic Port”, online applications with financial institutions for credit and trade financing products related to import and export business. Sinosure Shanghai Branch continues to implement preferential charge rates of no less than 10 percent (inclusive) for qualified micro, small and medium-sized enterprises, and to implement the enterprise-benefiting policy of “enjoy but with no need to apply”. Shanghai Branch of the Export-Import Bank of China shall set up a credit line of RMB 10 billion yuan dedicated to micro and small foreign trade enterprises to support such enterprises by means of direct loans and onward-lending. (Units responsible for implementation: the Municipal Financial Regulatory Bureau, Shanghai Head Office of the People’s Bank of China, Shanghai Office of China Banking and Insurance Regulatory Commission, the Municipal Commission of Commerce, the Municipal Finance Bureau, Shanghai Branch of the Export-Import Bank of China, and Sinosure Shanghai Branch)

II. Promoting Innovative Development of Foreign Trade

7. Leveraging the innovative and leading role of China (Shanghai) Pilot Free Trade Zone. Further efforts shall be made to accelerate the expansion of Phase III of Yangshan Special Comprehensive Bonded Zone, and to explore the possibility of expanding the scope of Yangshan Special Comprehensive Bonded Zone “direct pass” ports. A supervision area on international cargo transshipment and container cargo consolidation shall be supported to be established in Lin-gang Special Area to conduct business in this regard. Trials of coastal container relay service by non-Chinese-flag international-voyage ships of overseas international container liner companies will be pushed forward, and efforts will be made to make this kind of relay service more open and inclusive. The pilot integration of domestic and foreign trade is supported to be carried out in Waigaoqiao Bonded Zone, and further efforts shall be made to develop such functions as global operation management, global trade settlement, global distribution and delivery, and global R&D and maintenance. Waigaoqiao Biomedical Industrial Park and an international medical equipment intelligent manufacturing base will be built in Waigaoqiao Bonded Zone. (Units responsible for implementation: the Municipal Development & Reform Commission, the Municipal Commission of Commerce, Shanghai Customs, the Municipal Transportation Commission, Shanghai General Station of Immigration Inspection, China (Shanghai) Pilot Free Trade Zone Administration, and Lin-gang Special Area Administration)

8. Promoting innovative development of cross-border e-commerce. The construction of comprehensive pilot zones for cross-border e-commerce will be boosted, and a number of leading enterprises involved in cross-border e-commerce platforms, logistics, payments and other links of transactions will be cultivated. Cross-border e-commerce enterprises in China (Shanghai) Pilot Free Trade Zone are encouraged to carry out retailing business of certain imported non-prescription drugs and medical devices commonly used at home. Further efforts shall be made to put in place the ocean shipping model for cross-border e-commerce B2B exports. Returns of cross-border e-commerce commodities shall be facilitated, which shall allow cross-border e-commerce enterprises to consolidate the returned imports with exports in the same general bill for exports declaration. Tax policies on cross-border e-commerce returned export commodities shall be implemented, which may exempt qualified cross-border e-commerce returned commodities from import tariffs and import-related value-added taxes and consumption taxes. The cross-border e-commerce export platforms in Shanghai will be supported in their cross-border settlement in RMB. (Units responsible for implementation: the Municipal Commission of Commerce, the Municipal Medical Products Administration, the Municipal Tax Service of State Taxation Administration, Shanghai Customs, and Shanghai Head Office of the People’s Bank of China)

9. Supporting the development of bonded repair and remanufacturing. Enterprises in the comprehensive bonded zone are supported to conduct bonded repair business, and maintenance enterprises are encouraged to extend their industrial chain and enhance their ability to undertake international maintenance business. Enterprises in China (Shanghai) Pilot Free Trade Zone are supported to carry out bonded repair business for enterprises with overseas markets and customers in accordance with the maintenance product catalog of the comprehensive bonded zone. Under the premise of information sharing and risk control by regulatory departments, qualified enterprises outside the special customs supervision area are supported to carry out bonded maintenance business with high-tech content and high value added, and in line with environmental protection requirements. Further efforts shall be made to accelerate the implementation of the pilot regulatory system where part of the remanufactured products are entitled to the same treatment as imported new products. (Units responsible for implementation: the Municipal Commission of Commerce, the Municipal Bureau of Ecology and Environment, Shanghai Customs, the Municipal Development & Reform Commission, the Municipal Taxation Bureau, China (Shanghai) Pilot Free Trade Zone Administration, Lin-gang Special Area Administration, and Hongqiao International Central Business District Administrative Committee)

10. Increasing the quality and capacity of offshore trade. The development of new modes of offshore trade is encouraged. Banking institutions are supported to handle the offshore resale business through free trade accounts if it is not possible to use one single currency for receipt and expenditure settlement and if a review of “anti-money-laundering, anti-terrorist financing and anti-tax-evasion” has been conducted. Qualified enterprises with actual demand are supported to open free trade accounts to carry out offshore economic and trade business, and the list of offshore economic and trade enterprises shall be dynamically adjusted. Further efforts shall be made to carry out the pilot reform on foreign exchange control involving high-level opening-up of cross-border trade and investment in Lin-gang Special Area. Pilot banks are encouraged to expand the scope of premier enterprises in the pilot area, and process foreign exchange business related to current accounts according to customer instructions in order to further facilitate the receipt and payment of capital by premier enterprises via current accounts. China (Shanghai) Pilot Free Trade Zone is supported to optimize and implement special incentives for offshore trade. (Units responsible for implementation: the Municipal Commission of Commerce, Shanghai Head Office of the People’s Bank of China, Shanghai Branch of the State Administration of Foreign Exchange, China (Shanghai) Pilot Free Trade Zone Administration, and Lin-gang Special Area Administration)

11. Supporting the development of bonded refueling business. Qualified enterprises are supported to apply for bonded refueling service for international voyage vessels, and to steadily expand the scale of refueling business. Efforts shall be made to promote the online bonded oil/gas refueling business for international vessels, and launch online bonded oil/gas refueling trading varieties to scale up online transactions. Under the premise of safety guarantee, bonded refueling for international voyage vessels shall be actively and steadily carried out at anchorages in Shanghai. (Units responsible for implementation: the Municipal Commission of Commerce, the Municipal Development & Reform Commission, Shanghai Petroleum and Natural Gas Exchange Company, the Municipal Transportation Commission, Shanghai Customs, Shanghai Maritime Safety Administration, Shanghai General Station of Immigration Inspection, and Lin-gang Special Area Administration)

III. Supporting the Development of Diversified Markets

12. Supporting foreign trade enterprises to participate in domestic and overseas exhibitions. The offline East China Import and Export Fair will be held, in which more enterprises will be organized to participate. Foreign trade enterprises are supported to participate in the China International Import Expo (CIIE), the China International Consumer Products Expo and other domestic international exhibitions. Enterprises are encouraged to participate in the key exhibitions on the recommended directory, for which there shall be increased support in terms of booth fees for enterprises. Shanghai will continue to hold cross-border consultation activities like “Online Global Trade Fair”, and encourage enterprises to dock with trade partners online. Efforts shall be made to enhance cooperation with overseas economic and trade promoting agencies and overseas chambers of commerce (associations), to jointly organize economic, trade and investment docking activities of various kinds, with a purpose to promote international contacts and exchange of group visits. (Units responsible for implementation: the Municipal Commission of Commerce, the Municipal Finance Bureau, Council for the Promotion of International Trade Shanghai, and relevant convention and exhibition units)

13. Supporting enterprises to make good use of the Regional Comprehensive Economic Partnership Agreement (RCEP). Efforts shall be made to improve the functions of the origin information inquiry system and the most favorable tariff rate inquiry system of the “Shanghai International Trade Single Window”. More efforts shall be put in to cultivate approved exporters and guide enterprises to make good use of the facilitation measures of enterprises’ own statements of place of origin, so as to improve the efficiency in issuing certificates of origin. Qualified enterprises are supported to apply free of charge for certificates of origin under the Regional Comprehensive Economic Partnership Agreement (RCEP). Efforts shall be made to optimize the implementation of the rules of origin, and of the minor defects tolerance mechanism in terms of certificates of origin and enterprises’ own statements of place of origin, under which enterprises are allowed to make additions and corrections within a specified period of time, and their goods may be permitted through with a guarantee. (Units responsible for implementation: the Municipal Commission of Commerce, Shanghai Customs, and Council for the Promotion of International Trade Shanghai)

14. Leveraging the leading role of overseas warehouses. A comprehensive service platform for overseas warehouses shall be established, to accelerate data collection from overseas warehouses for cross-border e-commerce, and facilitate the receipt and settlement of foreign exchange and tax refund for overseas warehouses for cross-border e-commerce exports. Traditional foreign trade enterprises, cross-border e-commerce and logistics enterprises are encouraged to actively build overseas warehouses, and accelerate the construction of public overseas warehouses. Micro, small and medium-sized enterprises are supported to “help each other in exploring overseas market” with overseas warehouses. The business model of parcel retail export will be optimized in the special area of cross-border e-commerce. (Units responsible for implementation: the Municipal Commission of Commerce, Shanghai Customs, the Municipal Taxation Bureau, and Shanghai Branch of the State Administration of Foreign Exchange)

15. Expanding cross-border use of RMB. Efforts shall be made to carry out a higher-level and facilitated settlement in RMB for trade and investment on an experimental basis. In accordance with the “substance over form” principle, banking institutions are encouraged to simplify the cross-border settlement procedures in RMB, and to qualify more prime enterprises for the policy of facilitation. Commercial banks are encouraged to meet the RMB trade financing needs of enterprises through letters of credit, forfeiting, bill purchase, discounting, factoring, import bill advance and other businesses. Trials of the consolidated bank settlement account system in both domestic and foreign currencies shall be promoted. Banking institutions are encouraged to promote the full use of RMB by enterprises integrating domestic and foreign trade by means of the credit linkage created by integrated domestic and foreign trade settlement. Priority shall be given to settlement in RMB for cross-border trade in goods, trade in services and various new forms of trade, so as to foster a number of model enterprises in cross-border trade settlement in RMB. Export credit insurance institutions shall support enterprises to settle cross-border trade in RMB by increasing the fulfillment rate of credit limit and giving priority to promoting insurance acceptance. The Shanghai Bills Exchange is supported to expand refinancing services for cross-border trade. Hedging products against foreign exchange rate risks shall be improved. Banking institutions are encouraged to add RMB to foreign exchange common American options, Asian options and their portfolios to enterprises, to diversify the variety of RMB to foreign exchange derivatives in our domestic market. (Units responsible for implementation: Shanghai Head Office of the People’s Bank of China, Shanghai Branch of the State Administration of Foreign Exchange, the Municipal Commission of Commerce, the Municipal Financial Regulatory Bureau, and Sinosure Shanghai Branch)

16. Facilitating the exchange of international trade and economic personnel. Foreigners coming to Shanghai for business negotiations and contract signing on a short and urgent notice may apply for “port visas” by submission of relevant documents issued by the competent departments or the inviting units, for which the port visa authority will provide “24-hour” visa service. Online pre-processing of port visas is accessible on the “Government Online-Offline Shanghai” platform to ensure online services in a “zero offline visit” manner. Efforts shall be made to optimize the window service for “the Belt and Road” enterprises and the mechanism of facilitated entry/exit service for “go-global” enterprises, so as to facilitate the entry and exit of the relevant enterprises’ employees. (Units responsible for implementation: the Municipal Public Security Bureau, the Municipal Commission of Commerce, Foreign Affairs Office of the Municipal People’s Government, and Shanghai General Station of Immigration Inspection)

IV. Optimizing the Business Environment for Cross-border Trade

17. Facilitating the processing of foreign trade licenses. Further efforts shall be made to make online checking of import tariff quotas and paperless customs clearance of the corresponding cargo. Guidance shall be offered to import enterprises of mechanical and electrical products to go through automatic licensing online. There shall be paperless processing for application for civilian-military “dual-use” items and technology import and export licenses, and enterprises’ application materials shall be accepted and transferred within one working day. Enterprises with sound compliance systems are supported to apply for general licenses for specific “dual-use” items so that there can be multiple batches of imports and exports within a year with just one processing of licensing. (Units responsible for implementation: the Municipal Commission of Commerce, and Shanghai Customs)

18. Enhancing the facilitation of cross-border trade. The pilot facilitated customs transit model of “confirmation on departure” will be implemented to improve the efficiency of port operations for water-water transit cargo. The pilot program of “in-advance declaration and loading upon arrival” for auto exports will be fully carried out, under which qualified export vehicles will be cleared by the customs without any intervention. The reform of unaccompanied customs inspection will be promoted, to ensure unaccompanied inspections reach a rate of more than 70 percent. Expansion shall be achieved in the business of off-site freight stations in the Yangtze River Delta region to enhance their function of cargo collection and distribution. The “one policy for one ship” service for inbound and outbound vessels shall be guaranteed, and facilitation measures such as exemption from border inspection procedures for direct transit flight crews at airports shall be advanced in order to improve the efficiency of port clearance and cargo turnover efficiency. (Units responsible for implementation: Shanghai Customs, the Municipal Transportation Commission, the Municipal Commission of Commerce, Shanghai International Port Group Company, Shanghai Airport Group Company, and Shanghai General Station of Immigration Inspection)

19. Advancing the construction of trade digitalization. A three-year action plan for the “Shanghai International Trade Single Window” platform shall be formulated to promote the construction of key projects such as the mobile platform for cargo owner enterprises and the platform for cross-border self-help customs clearance. Explorations shall be made to pilot paperless exchange of letters of guarantee between shipping companies, freight forwarders and import and export enterprises at Shanghai ports. Shipping companies and port enterprises are encouraged to carry out paperless exchange of business documents based on block-chain technology. The construction of the Hongqiao Trade Digitalization Empowerment Center shall be supported to promote the digital transformation and scenario application of trade links such as R&D and manufacturing, marketing, cross-border customs clearance, logistics and warehousing, trade financing and after-sales services, which will attract trade digital service providers to cluster in Shanghai. (Units responsible for implementation: the Municipal Commission of Commerce, the Municipal Transportation Commission, the Municipal Commission of Economy and Informatization, Shanghai Customs, Hongqiao International Central Business District Administrative Committee, Shanghai International Port Group Company, and Shanghai Airport Group Company)

20. Strengthening the protection of foreign-related intellectual property rights (IPR). Detailed rules for the review of intellectual property right transfers to foreigners and suggestions on the protection of intellectual property rights in electronic commerce shall be formulated. The overseas intellectual property rights protection and assistance mechanism shall be perfected. Efforts shall be made to develop a configuration of overseas pro bono service sites, and to advance the construction of an expert database and a typical case database in response to overseas intellectual property disputes, so as to strengthen guidance for enterprises to protect their legitimate rights and respond to disputes resolution overseas. Enterprises are supported to respond to overseas IPR case investigations and safeguard their legitimate rights and interests. Cooperation with the World Intellectual Property Organization shall be strengthened and further efforts shall be made to expand the business scope of the Shanghai Center for Arbitration and Mediation. Foreign patent agencies are promoted to set up permanent representative offices in Shanghai, which shall be supported to engage in patent services in accordance with law. (Units responsible for implementation: the Municipal Intellectual Property Administration, and the Municipal Commission of Commerce)

21.Improving legal services for foreign-related economic and trade issues. Further efforts shall be made to construct the monitoring and early warning system for Shanghai industrial security, so as to carry out resilience assessment of the industrial and supply chains in key areas. Efforts shall be made to optimize the public services of assisting trade adjustment in Shanghai, and to strengthen the construction of early warning centers on economic and trade frictions and of service platforms for small and medium-sized enterprises to deal with economic and trade frictions, so as to assist and guide enterprises in their dealing with economic and trade frictions. Overseas arbitration institutions are supported to set up business agencies in Shanghai and conduct foreign-related arbitration for civil and commercial disputes in fields including international commerce, maritime affairs, and investment. (Units responsible for implementation: the Municipal Commission of Commerce, the Municipal Bureau of Justice, and Council for the Promotion of International Trade Shanghai.)

This Document shall be effective as of April 6, 2023.