Hengqin all set to implement special customs clearance policy
04 June 2014
Currently, infrastructure construction at Hengqin New Area has basically been completed, with the building of a power plant, water plant, gas-fired power station as well as a 33.4-km integrated pipe ditch all brought to completion, making Hengqin an area with the most advanced urban planning design in the country. Where transport facilities are concerned, the East Ring Road and North Ring Road have been constructed and opened to traffic. It is projected that the second bridge at Hengqin will be completed this year while the Hong Kong-Zhuhai-Macau Bridge is expected to be open to traffic in June 2016. The extension line of the Guangzhou-Zhuhai intercity rail which commenced construction at the end of last year is also scheduled to start operation in 2016. Moreover, Hengqin plans to build a road leading directly to Zhuhai Airport.
Once Hengqin New Area enters the "closed operation" mode at its customs supervision zones, it will become the first locality in China to implement differentiated management of customs clearance at different customs supervision zones, paving the way for exploring a new management mode for Guangdong-Hong Kong-Macau cooperation. According to a local official, when Hengqin New Area officially starts "closed operation" at its customs supervision zones, it means that the policies granted by the central government to the new area with regard to customs clearance, tax reliefs, goods in bond, tax refund, selective tariff levy in customs clearance, and tax concessions, will go into full force.
Under Hengqin’s new customs clearance mode, "more relaxed control at the first line" means that import/export goods are subject to more liberal measures in terms of tax and documentation in the first line customs supervision zone. For instance, production-related goods may be treated as bonded goods and exempted from tax, while application for quota and licences is waived for goods requiring import filing. "Tighter control at the second line" means that goods subject to relaxed measures in the first line customs supervision zone will come under control in the second line customs supervision zone. For instance, bonded and tax-exempted goods entering from the first line to the second line for sale to other parts of the mainland are required to complete customs declaration procedures applicable to import goods, with tariffs levied in accordance to regulations and import quota and licences verified. This policy is similar to the negative list management mode used in free trade zones, whereby management by filing for the record is implemented and the policy of tax exemption or goods in bond is granted.
The recent launch of "closed operation" in Hengqin New Area is bound to significantly push up land prices in the district. The move is also expected to facilitate Hengqin’s application for becoming a free trade zone.
- Mainland China
- Mainland China