home
 >  >
News conference of the Comprehensive Reforms Pilot Work of International Business in Yiwu
2013-08-01 10:04:11

Topic: News conference of the comprehensive reforms pilot work of international business in Yiwu

Release time: 10:00 AM, July 31st (Wednesday)

Distinguished guests: Zheng Yumin, Head of the Office of the Comprehensive Reforms Pilot Work of International Business in Yiru, Party Group Member of the Provincial Government

  Leaders of Zhejiang Provincial Development and Reforms Commission, Department of Commerce of Zhejiang Province, Department of Transport of Zhejiang Province, and Zhejiang Provincial Department of Finance

  He Meihua, Vice Mayor of Jinhua City, Mayor of Yiwu City

Introduction: The news conference of the comprehensive reforms pilot work of international business in Yiwu was held at 10:00 am on July 31st (Wednesday) at Zhejiang Provincial Press Conference Room (Conference Center of Zhijiang Hotel, 3rd Floor). Zheng Yumin, Head of the Office of the Comprehensive Reforms Pilot Work of International Business in Yiru, Party Group Member of the Provincial Government, Leaders of Zhejiang Provincial Development and Reforms Commission, Department of Commerce of Zhejiang Province, Department of Transport of Zhejiang Province, and Zhejiang Provincial Department of Finance, and He Meihua, Vice Mayor of Jinhua City, Mayor of Yiwu City, will attend the conference to issue information and answer questions from the press.

Link address: http://www.zj.gov.cn/col/col30791/index.html

Press release:

Introduction to the Comprehensive Reforms Pilot Work of International Business in Yiwu

Since the State Council approved the general scheme of the comprehensive reforms pilot work of international business in Yiru on March 4th, 2011, we took the reforms pilot as the point of breakthrough of promoting the scientific developments in Yiwu. We composed the first three-year plan which was systematically implemented to promote the overall development by reforming the critical fields, and initial achievements have been made.

First, great progress achieved in the reforms of international business system

  1.The establishment of market purchasing trades. Centering on the commercial features of “diverse types, multiple batches, small lot size, mixed stuffing, and diverse subjects” in the international business of small commodities in Yiwu, in March 2012, the “Pilot Scheme of New Trades of Market Purchasing in Yiwu” was composed and reported to the State Council. Under the joint efforts of the state, the province, and the governments and developments at the city level, on April 18th, 2013, Ministry of Commerce, National Development and Reforms Commission, Ministry of Finance, General Administration of Customs, State Administration of Taxation, State Administration for Industry and Commerce, General Administration of Quality Supervision, and State Administration of Foreign Exchange jointly issued a document to approve the formal establishment of pilot market purchasing trades in Yiwu.

  2.Several policies issued to facilitate business. In order to support and promote the comprehensive reforms pilot work in international business, centering on the establishment of new international trade system, several policies at the national, provincial and municipal level have been issued to facilitate trades. The policies at national level mainly include the following. First, the General Administration of Customs approved the reforms pilot of paper-free customs clearance in Yiwu. Second, General Administration of Quality Supervision reformed the entry-exist inspection and quarantine system in the place of purchase. Third, Ministry and Finance and State Administration of Taxation issued the Notice of the Policies of the Value Added Tax of Exported Commodities and Consumption Duties, stipulating the exemption policy of value-added tax is applicable in exported commodities reported as tourist purchases. Fourth, Ministry of Commerce issued the “Notice of Entrusting 28 Local Commercial Departments as the Registration Units for Foreign Trade Operators”, making Yiwu as the first county (city) in China to possess registration power for foreign trade operators. Fifth, Ministry of Commerce issued the Notice of Related Issues of the Registration of the Foreign Trade Operators in Foreign-invested Partnership Companies”, further clarifying the issues about the operation of foreign-invested partnership companies. Sixth, the Central Bank approved “the Measures on the Pilot of Personal Cross-border RMB Business”, making Yiwu as the first pilot city in China to start personal cross-border RMB business. Seventh, State Administration of Foreign Exchange issued “the Notice of Related Issues of the Management of Foreign Currencies in Foreign-invested Partnership Companies”, stipulating that, after acquiring the foreign business right, the foreign-invested partnership companies can open a foreign exchange settlement account. Eighth, Ministry of Foreign Affairs granted Yiwu as the first city at the county-level in China to have the right to examine and approve the invitation for foreigners to visit China.

  Given the series of reforms and policies issued by different ministries and departments, we studied the policies carefully, and at the same time explored the practices. Since the August 2014, significant achievements have been made by implementing some of the facilitating policies of the market purchasing business for the foreign trade companies registered in Yiwu. In the first six months this year, the total export-import volume in Yiwu reached 9.6 billion Yuan, with a year-on-year increase of 375.8%. The accumulated exports reached 9.43 billion US dollars, with a year-on-year increase of 408.2%. In particular, the export volume in market purchase accounted for 7.34 billion US dollars, taking 77.8% of the total export volume.

Second, speedy development of the three major platforms

  1.The demonstrative platform for trades has been expanded. We made good deployment of “the visible and the invisible” and “the domestic and the international”, strengthened the real markets and the exhibition economy, greatly developed the e-commerce, and actively explored the import market and the overseas market. The pace of market transformation and upgrading is quickening. Up to this point, the Phase 1 of Stage 1 project of the international production materials market covering a construction area of 750,000 square meters has been completed, and will be put into use in the October this year. The Yiwu Exhibition Hall of Import Commodities now included more than 50,000 overseas commodities from more than 90 countries and regions. The construction of the exhibition and sales hall for African commodities and that for ASEAN commodities has been completed. The project of Mosco-Yiwu international business center and the project of China Yiwu (Tanzania) economic and trade cooperative zone are also in progress. E-commerce is booming rapidly, with an average daily amount of domestic express delivery of 550,000 pieces, and that of cross-border express delivery of 200,000 pieces. The total amount of express deliveries in Yiwu is now ranked as the sixth among the major and medium-sized cities around China. The scale of four nation-level conferences, i.e., Yiwu International Commodities Fair, Yiwu Cultural Products Expo, China International Tourism Expo, and China Yiwu International Forestry Products Expo, keeps expanding.

  2.Integrate and cluster the industrial development platforms. We focused on the construction of the Yiwu commercial service cluster. Yiwu Economic Development Zone has been upgraded into a national economic development zone, and Yiwu Industrial Park is applying to become a national demonstrative base of new industrialization. We also set up Yiwu Headquarters Economic Zone and commercial business zone to promote circulation, and to enhance the healthy interaction and development of manufacturers. 13 nation-class industrial bases have been clustered, incubating more than 27,000 industrial enterprises in various fields, and fostering a group of national or even world –class industry-champions in ornaments and accessories, socks, and zip fasteners. The developmental framework of “small commodities, big industrials, small enterprises, big clusters” has been formed.

  3.Speed up the construction of the transport and logistic platforms. We took initiatives to connect with Shanghai, to strengthen the connection with Ningbo-Zhoushan both at land and in sea, and to build an international land port which radiate across the nation and connect with the globe. Up to the point, Yiwu has been recognized by UNESCAP as an international land port, and its aviation port has been listed in the port development scheme in the Twelfth Five-year Plan. Eight transport and logistic projects, including the Supervision Center of Small Commodities Exports, have been listed in the general plan of national highway transport hubs. We are speedily construct a series of major platform projects, including the inland Yiwu Port with its annual capacity of 1,100,000 TEUs, Yiwu aviation port with its annual passenger handling capacity of 1.8 million people, and the National Logistic Center of Small Commodities.

Third, the simultaneous promotion of supporting reforms.

  1.Deepen the system reforms to extend the management authority. In order to support and assist the reforms pilot work in Yiwu, in June and September, 2012, Zhejiang CPC Provincial Committee and the provincial government transferred respectively 357 and 406 authorities of supervision and management in provincial departments. This year, a new round of reforms of the administrative examination and approval system was launched in Yiwu, and the pilots of business registration, the pre-entry group examination and approval, and the speedy examination and approval of setting the trade subjects are all in progress. We also implemented the “three systems” for investment projects to shorten the length of examination and approval effectively. It is hoped to make Yiwu into an area with the least examination and approval links, the highest work efficiency, the lowest government cost, and the best investing environment.

  2.Innovate in foreign management and service system. We strived to promote the capacity in international trade and foreign management and service, and to establish a public service system with high efficiency, convenience, vigor and order. The Yiwu Branch of Exit-Entry Administration Bureau of Zhejiang Public Security Department and Yiwu Branch of Customs and Anti-Smuggling Bureau were set up. The banking institutions were also upgraded. Yiwu Office of the China International Economy and Trades Arbitration Commission was set up. The visa-issuing office of Yiwu Branch of China Council for the Promotion of International Trade was also set up. An international trade service center was set covering 108 foreign services in seven departments ranging from public security, business to foreign affairs, which can offer one-stop service to foreign businessmen. The daily amount of cases exceeds 500.

  3.Promote specialized reforms of lands and finance. In order to strengthen land and financial supports, in November last year, Ministry of Land and Resources approved “Specialized Reform Plan of Land Management System of Yiwu International Trades Comprehensive Reforms”. We have composed the implementation plan and a three-year action scheme, laying a solid foundation for setting up a regular evaluative and dynamic modification system of land use and planning, and a collaborative and complementary system of regional resource use. The “Specialized Financial Scheme of Yiwu Comprehensive Pilot Reform of International Trades” was also approved by People’s Bank and other national departments and commissions, and the document issuing is currently under way.

Fourth, the establishment of working mechanisms

  1.Establish the pilot promotion mechanism for the link from above to bottom. The cooperation at the ministerial and provincial level becomes closer. The leaders in the provincial CPC committee and provincial government lead in person a work group to State Development and Reform Commission to study the pilot work, and leader in charge frequent visit the responsible ministries and departments. More than 30 ministries and departments, including State Development and Reform Commission, General Administration of Customs, General Administration of Quality Supervision, and State Administration of Taxation, sent survey delegation to Yiwu to supervise the pilot work. General Administration of Customs and General Administration of Quality Supervision both signed cooperative memorandum of the pilot work in Yiwu. The link at the provincial and city levels are also promoted. Fifteen province-level departments, including Department of Commerce of Zhejiang Province, and Zhejiang Provincial Administration for Industry and Commerce, have issued policies related to Yiwu pilot work. The first group of 50 officers selected by the Organization Department of CPC Zhejiang Provincial Committee went to Yiwu to take temporary positions. Bank of China Hangzhou Center Branch and other 11 financial institutes signed cooperative agreements with Yiwu. The Provincial People’s Congress also made special decisions on guaranteeing and promoting the pilot work in Yiwu.

  2.Set up a mechanism to allocate pilot tasks with explicit responsibility requirements. In January 2012, the General Office of the State Council issued a work-allocating scheme of the major pilot works, allocating 41 major tasks to 30 national ministries and departments. After two years’ exploration, 10 out of the 41 major tasks have been largely completed, and initial achievements have been gained for other 23 tasks. According to the scheme made by the General Office of the State Council, the provincial government issued a three-year implementation plan and year-by-year plan of major tasks. Among the 70 major tasks laid down in the three-year implementation plan, 60 tasks have been completed, accounting for 86% of the total amount.  

Fifth, the effects of reforms emerged.

With the deepening of the reform pilot, significant achievements emerged. In the first half of this year, the gross regional domestic product reached 39.57 billion Yuan, with a year-on-year increase of 10.2%. The fix assets investment reached 17.77 billion Yuan, fulfilling 42.5% of the progress objectives of the whole year. The exports continued its fast pace of development. The total export-import volume in the first half of this year reached 9.6 billion US dollars, with a year-on-year increase of 375.8%. The accumulated exports reached 9.43 billion US dollars, with a year-on-year increase of 408.2%. In particular, the exports of market purchasing amounted to 7.34 billion US dollars, accounting for 77.8% of the total exports. The general trade exports reached 1.99 billion US dollars, with a year-on-year increase of 11.9%. The market activities became more vigorous. Until July 24th, the number of foreign economic subjects reached 5208, with a year-on-year increase of 15.53%. In particular, there are 1,741 foreign-invested partnership enterprises, taking up 90% of the total number in Zhejiang province, and 80% of the total number in China. The market regulation was also improved. In the first half of the year, there were 44 notices that involved market purchasing exports in Yiwu, with a year-on-year decrease of 48.24%. In particular, the notices involving toys fell by 76.9% with a significant drop. The customs network supervision covered 33,000 merchants. The innovative capacity has been strengthened. In the first half of the year, there were 4,475 cases of patent application in Yiwu, with a year-on-year increase of 24.5%. The number of authorized cases was 2,165, with a year-on-year increase of 10.1%.

Introduction to the Market Purchasing Trade in Yiwu Pilot

  1.Background of the piloting of market purchasing trade

Foreign trade in China has undergone a few significant changes in its development. Before the reform and opening up, the export-import trade in China was monopolized by only a handful national state-owned specialized foreign trade companies. Most other enterprises had no direct access to the international market. After the reform and opening up, the scope of foreign trade subjects was expanded, and the operational framework of foreign trades by various trade companies and provincial foreign trade companies was formed. After China’s entry in WTO, the foreign trade rights were further expanded from a few provincial companies and major trade companies to a new multi-level and multi-channel system in which different forms of ownership participated and competed with each other. However, in all the above forms of operation, the traditional model of point-to-point trade through sample checking and ordering still prevailed.

        After the entry into the new millennium, Yiwu has become a typical specialized market with its clustering advantage of commodity diversity and information transparency, the market purchasing trade was thus formed and developed. This trade form significantly lowers the trade cost, enhances the trade efficiency, and provides more comprehensive catalogues for clients to choose. Compared to the traditional trade forms, this is a new form of foreign trade of a higher level. Up to this point, more than 200,000 medium-small-mini-sized enterprises from all over the country reply on Yiwu market to participate in international trades, which created more than 10 million employments. Market purchasing trade provides a wide platform of international business and trades which is shared by medium-small-mini-sized enterprises, builds a convenient channel of connecting the international market, and enhances the international competitiveness of the small commodities made in China.

  2.Characteristics of market purchasing trade

Market purchasing reform is a form of foreign trade naturally formed in the process of the internationalization of specialized markets. Unlike traditional foreign trade, it mainly involves the specialized markets in the coastal and inland border areas such as Zhejiang, Guangdong, Fujian, Beijing and Xinjiang. In particular, Yiwu market is most typical with the following characteristics.

  (1)The participants in market purchasing trade are diverse and flexible. Up to this point, a large number of agents participated in market purchasing trade in Yiwu market, among which are market merchants, domestic and foreign buyers, and various enterprises that offer supporting services for market purchasing trade, such as foreign trade companies, freight forwarding companies, customs brokers and warehouse logistic companies. The agencies range from domestic private businessmen, foreign natural persons, domestic enterprises or offices, foreign-owned enterprises, foreign-invested partnership companies, to resident representative offices of foreign enterprises.

  (2)The trade cost is low. Up to this point there are more than 1.7 million products of 33,217 sub-categories of 4,202 categories of 16 broad types, covering almost all the industrial consumer goods. As the trade space and the commodities are highly clustered, the buyers can enjoy a relatively lower search cost, information cost and contracting cost, so they can purchase commodities of different types in large amounts within a short period of time.

  (3)With regard to the trade form, market purchasing trade integrates both domestic and foreign trade. First, it is similar to domestic trade in terms of business negotiation, delivery and settlement of the payment. Second, it is also similar to common foreign exports in that foreign buyers usually entrust foreign trade companies to export the products according to their requirements, and, on behalf of them, the foreign trade companies go through the procedures of exporting purchased commodities.

  (4)With regard to shipment, bulking and grouping of containers is common for market purchasing trade. Foreign buyers usually make purchases of multiple categories and batches in small batch size. In order to lower the cost, it is a common practice for several buyers exporting to the same destination port to bulk their containers, while a single buyer usually group different commodities in the containers. As a result, a single container may actually contain a few, dozens or even hundreds of commodities from different manufacturers, retailers and buyers.

  3.Policy reforms and breakthroughs with regard to market purchasing trade form

In March 2011, The State Council issued the “A Reply Concerning the General Scheme of the Comprehensive Reform Pilot of Yiwu International Trades” (Letter of the State Council, No. 22, 2011), approving to develop a pilot of international trade comprehensive reform in Yiwu, requesting the deepening of reforms in the key fields and critical links of international trades. In January 2012, the General Office of the State Council issued the Work-allocating Scheme to Promote the Major Works in the Comprehensive Reform Pilot of Yiwu International Trades” (Letter of the State Council, No. 15, 2012), putting “market purchasing trade” as the first and a key task among the works of the entire reform pilot. Led by Ministry of Commerce, with the joint effort of National Development and Reforms Commission, Ministry of Finance, General Administration of Customs, State Administration of Taxation, State Administration for Industry and Commerce, General Administration of Quality Supervision, and State Administration of Foreign Exchange, the new trade form of “market purchasing” was carefully studied and specified, the definition, application scope and management of the new trade form was also clarified, approved and implemented.  

        After almost two-years’ efforts, the eight ministries and departments jointly issued “the Letter of Piloting Market Purchasing Trade in Yiwu, Zhejiang by Ministry of Commerce, National Development and Reforms Commission, Ministry of Finance, General Administration of Customs, State Administration of Taxation, State Administration for Industry and Commerce, General Administration of Quality Supervision, and State Administration of Foreign Exchange”, approving the piloting of market purchasing trade in Yiwu since April 18th, 2013.

       The reforms and breakthroughs in current policies of market purchasing trade are as follows.

        First, foreign-invested partnership companies are allowed to register for foreign trades and to open current account foreign exchange accounts.  

        Second, the commodities of market purchasing trades can enjoy the exemption of added-value taxation. The operators of market purchasing trades can visit the local national tax departments in the market clustering region to go through the procedures of tax exemption.

       Third, the customs supervision is expanded to cover market purchasing trade.

        Fourth, based on the principle of “controlling the quality, tracing to the sources, holding the responsibilities”, the customs and the departments of inspection & quarantine should provide more convenient measures of customs clearance. The custom clearance should be fastened while the control should be maintained.

        Fifth, settlements in RMB are allowed for market purchasing trades. The speed of payment to the account is increased, and foreign exchange rate loss is saved.   

        Sixth, the maximum value of each lot declared at the customs is 150,000 US dollars, which is 50,000 US dollars higher than the standard set for tourist purchase trades.

  4.The significance of piloting market purchasing trades

The piloting of market purchasing trades is the key and an important breakthrough in the comprehensive reforms of international trades in Yiwu. It is of great significance to speed up the transformation of foreign trades in China, and to promote the integration of domestic and foreign trades, and to enhance the level of opening up.

  (1)The piloting of market purchasing trades is an important measure to implement the scientific outlook on development, and to speed up the transformation of foreign trades. We can give a full play to the fundamental role of market in resource allocation, and to the unique role of Yi market of small commodities in global division of labor, and we should optimize the subject structure, commodity structure and trade forms in international trades. It helps to explore the new mechanism of the connection between trades and industries, and the integrated development of industries. It also helps to promote the transformation and upgrading of medium-small-mini sized enterprises, to lift the strategic status of Yiwu in international trades, and to lift the value of “Made in China” in the value chain of the consumer industry. Yiwu is intended to become a demonstrative zone of foreign trade transformation, an important base of industrial transformation and upgrading, and a world-class center of small commodities in the world.

  (2)The piloting of market purchasing trades is an important means to drive logistic modernization and promote the integrated development of domestic and foreign trade. The piloting of market purchasing trades makes use of modern logistic technology to establish a shared market platform, which can drive the professional markets to evolve from simple commodity suppliers to suppliers of comprehensive service functions, promote the integrated development of visible and invisible markets, and to improve the level of modernization of the market and logistics. It helps to establish a unified and coordinated supervising mechanism of domestic and foreign trades, to optimize the integrative system of domestic and foreign trades, and to promote the building of the commercial credit system. It is hoped to form a coordinated healthy environment for the development of domestic and foreign trades, and to speed up the integrated development of domestic and foreign trades.

  (3)The piloting of market purchasing trades is an important way to facilitate trades, promote opening up, and to enhance the international competitiveness. The piloting of market purchasing trades helps to optimize the design of supervising systems, to greatly facilitate trades, to make innovations in international trade management and service system, to reduce the cost of business operation, to increase the efficiency of international trades, to cultivate a open, efficient and effective environment for international trade development, and to form a new advantage of participating in international economic cooperation and competition in the context of economic globalization.

  5.The achievements of the piloting of market purchasing trades.

The piloting of market purchasing trades sets the principles of “staying under control, fast in custom clearance, and traceable to the sources”, and targets at “the landing of foreign companies in other places” as its breakthrough. Since the start of piloting, significant achievements have been acquired.

              Foreign trade grows in spite of a recession and makes contributions to the foreign trade exports of Zhejiang. The market purchasing trade has become a new growth pole of the foreign trades in Yiwu. From September 2012 to June 2013, the month-on-month increase rate of the exports in Yiwu excelled 150% for ten consecutive months. The accumulated export volume reached 15.77 billion US dollars, with a year-on-year increase rate of 400%. In particular, the exports realized in market purchasing trade accounted for 78%. The exports in Yiwu has come a major driving force for the total export growth in Zhejiang province. The piloting of market purchasing trade contributed to 66% of the total export growth in Zhejiang, and the number for the first six months this year was 63.1%.

       Trade standardization has been promoted. The piloting of market purchasing trade changed the past circumstances when the agents of foreign trade and logistic companies from other places dominated the market and posed difficulty to effective supervision. Now the local foreign trade subjects became the major force in market commodity exports in Yiwu. Such a “returning” of the foreign trade subjects in market helps to further establish and perfect a market supervision mechanism, to facilitate the standardization of foreign companies, and to make foreign trade statistics closer to the real business situation.

  Trades have been facilitated. Up to this point, the policies concerning custom clearance, taxation and currency management have been put into effect, which significantly facilitated market purchasing trade, and actively contributed to China’s reforms of foreign trade management system.

Yiwu Listed as an International Land Port City by UNESCAP

The 69th Annual Conference of UNESCAP was held in Bangkok, Thailand from April 25th to May 1st. The members approved by vote “Government Land Port Agreement”. Ministry of Transportation, Ministry of Foreign Affairs, and the General Administration of Customs participated in the work of its examination and approval. Seventeen cities in China, including Yiwu, were on the list. Most of the 17 cities were important cross-border cities in the mid-west area, and Yiwu was the only enlisted inland city in East China as well as in Zhejiang.

 

[Print] [Close]
 
Produced By 大汉网络 大汉版通发布系统