SMPG GO G [2021] No. 25

Attention: all Districts People's Governments, and all Commissions, Offices and Bureaus (Administrations) of the Municipal People’s Government:

Opinions on the Implementation of Accelerating the Development of New Forms of Business and New Models of Foreign Trade in This Municipality were approved by the Municipal People’s Government. We hereby issue them to you, and request you to implement them conscientiously.

Opinions on the Implementation of Accelerating the Development of New Forms of Business Forms and New Models of Foreign Trade in This Municipality

For the purposes of deeply carrying out the Notice of the General Office of the State Council on Opinions on Accelerating the Development of New Forms of Business and New Models of Foreign Trade (SC GO G [2021] No. 24), the following opinions are hereby put forward for the implementation of accelerating the development of new forms of business and new models of foreign trade in this Municipality.

General Requirements

1. Guiding Thought. Follow the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, implement the guiding principles of the Party’s 19th National Congress, and the second, third, fourth and fifth plenary sessions of the 19th Party Central Committee in an all-round way, ground the efforts in the new development stage, apply the new development philosophy, and create a new pattern of development. Take reform and innovation as the fundamental driving force, take the major national strategic tasks, such as Pudong’s high-level reform and opening up and the construction of the Hongqiao International Open Hub, as an opportunity to fully consolidate the task goals of constructing Shanghai International Trade  in the 14th Five-Year Plan period, and strive to create the  of big domestic cycle and the strategic link of domestic and international dual cycle to realize the innovation and development of foreign trade.

2. Development Goals. Persist in the leading position of innovation, take the innovation’s driving force as the key driving force for the trade’s continuation and transition from the old driving force to the new one, cultivate new advantages in trade competition, and enhance the soft power of trade development. Further increase the contribution of foreign trade to the economic development in this Municipality.

Increase the policy support for the development of new forms of business and new models of foreign trade. Actively explore the path of institutional open-up, promote the digital transformation of foreign trade, strive to enable a batch of foreign trade projects to take the lead in the implementation of foreign trade innovation pilot tasks, realize a set of policies that support the foreign trade innovation to gain a breakthrough, and accelerate the rapid development of a batch of new forms of business and new models of foreign trade.

Highlight the comprehensive competitive advantages of new forms of business and new models of foreign trade. Further highlight the driving and leading role of the new forms of business and new models of foreign trade to the high-quality development of trade, to the smoother foreign trade channels and more optimized business environment for cross-border trade, and thus lay a solid foundation for building a global trade hub.

The radioactive force of the innovation of new forms of business and new models of foreign trade has become more prominent. Give full play to the radioactive effect of trade on the two fields of domestic and international trade, and smooth the exchange channel for the domestic and international dual-cycle. Dock with RCEP and other new international economic and trade agreements, increase the dynamics of stress testing, promote international cooperation in industrial chain and supply chain, and raise the level of opening up.

II. Accelerating the Innovation and Development of Trade up to a Higher Level, and Cultivating New Advantages in Trade Competition

3. Creating a Highland for Innovation and Development of Offshore Trade. Support commercial banks to decide on their own on reviewing the types of transaction documents for RMB offshore economic and trade business and foreign exchange offshore trade business with real and legal basis for transactions and with commercial rationality and logic. Expand the scale of offshore economic and trade business for free trade accounts, optimize the mechanism for generating the "list of enterprises engaging in offshore economic and trade business", and keep a dynamic update for eligible enterprises. Strive to implement tax policies suitable to the development of offshore business in the areas with proper condition in Pudong. Support Shanghai Pilot Free Trade Zone, Lin-gang Special Area and other areas to adopt special policies for offshore trade. (Responsible departments and units: the Municipal Commission of Commerce, Shanghai Branch of the People’s Bank of China, Shanghai Branch of the State Administration of Foreign Exchange, the Municipal Finance Bureau, Pudong New Area People’s Government, and Lin-gang Special Area Administration)

4. Propelling the Development of Green and Low-carbon Trade. Support the enterprises in this Municipality to develop green technology and to expand green production, and accelerate their integration into the global value chain of green industries. Support Shanghai Environment and Energy Exchange to establish a national trading market for carbon emission. Encourage the development of green remanufacturing businesses, allow overseas remanufactured products in specific categories to be imported as new products, and study and push the opening of the remanufacturing businesses of used mechanical and electrical products which have been prohibited from import, such as the key parts of automobile engines and high-end medical equipment. Further support the enterprises in the comprehensive bonded zone to carry out bonded maintenance and repair businesses, and strive for an expansion of the product scope of maintenance and repair in the comprehensive bonded zone. Support the enterprises in the pilot free trade zone to carry out bonded maintenance and repair businesses in which raw materials are imported from abroad and final products are sold to overseas markets according to the catalog of maintenance and repair products in the comprehensive bonded zone. Under the premise of ensuring risk-control, support the key enterprises outside the Customs’ special supervisory control zone to carry out bonded maintenance and repair businesses of the products with high technology and highly added value and compliant with the environmental protection requirements. (Responsible departments and units: the Municipal Commission of Commerce, Shanghai Customs, the Municipal Bureau of Ecology and Environment, Pudong New Area People’s Government, and Lin-gang Special Area Administration)

5. Forging Distribution s for International Trade. Encourage multinational enterprises to take Shanghai as their global or regional logistics distribution business station, and acknowledge a batch of distribution enterprises with large-scale and wide-ranging trade as demonstration enterprises of Shanghai International Trade Distribution . Expand the pilot scope of the Non-Reprocessing Certificate for international distribution goods, and support that certain relevant goods under the preferential trade item shall benefit the import of other countries (regions). Give full play to the policy advantages of Yangshan Special Comprehensive Bonded Zone in the building of an international service  of less-than-container load transit  in the Yangshan Special Comprehensive Bonded Zone, further simplify the supervisory administration procedures for the export and import, and raise the smoothness and freedom of the movement of goods. Support international trade distribution enterprises to raise their capital settlement and other special functions, and enhance the influence of resource allocation in the global supply chain. (Responsible departments and units: the Municipal Commission of Commerce, Shanghai Customs, Pudong New Area People’s Government, and Lin-gang Special Area Administration)

6. Supporting the Healthy Development of Enterprises Providing Comprehensive Foreign Trade Services (hereinafter referred to as the service enterprise). Support the service enterprise to obtain the high-grade customs certification, enjoy the differentiated and convenient services in customs clearance for import and export, and further lower the average rate of inspection on import and export goods of the certified enterprise. Further consolidate and perfect the "dual punishment" customs mechanism. Under the condition of no intentional  or serious offence, the service enterprise and its customer(s) shall bear each other’s own responsibility according to different circumstances. Support the representative manufacturer of the service enterprise to apply for the export tax refund (exemption), continuously raise the level of a convenient handling of export tax refund, and ensure a timely and full tax refund. The service enterprise can decide on its own whether to open an export income account for verification when handling the foreign exchange income from the commodity trade. (Responsible departments and units: the Municipal Commission of Commerce, Shanghai Customs, the Municipal Tax Service, and Shanghai Branch of the State Administration of Foreign Exchange)

7. Supporting the Development and Growth of Vertical Service Platforms for Foreign Trade. Support the sharing of innovations in subdivided foreign trade fields such as marketing, payment, delivery, logistics, and quality control. Encourage the platforms for subdivided foreign trade services to develop the vertical market in an in-depth manner in all areas and industries, and take the road of "applying special and sophisticated techniques to produce unique and novel products". Encourage foreign trade enterprises to build independent stations on their own, and support the professional-station-building platform to optimize and raise its service capability. Explore the application of the block-chain technology in subdivided trade fields. (Responsible department: the Municipal Commission of Commerce)

Accelerating the Advancement of Digital Empowerment of Trade Innovation and Cultivating the New Driving Force for Trade Development

Perfecting the Digital Infrastructure of Trade. Promote the upgrading of information platform of the port, deepen the construction of the "one-window" service for Shanghai international trade, integrate the function of handling the whole business process on "port clearance, docking and shipping logistics", and promote the two-way exchange of information between the business acceptance systems of the seaport and airport and the "one-window" system for Shanghai international trade. Build an information release system for publicizing charges and services of the "one-window" system for Shanghai International Trade to realize the online publicity and online inquiry on charging standards of ports, such as the charging standards for shipping agents, tally and others. Strengthen the application of concepts and methods of big data, and continuously urge the construction of a big data platform for cross-border trade in Shanghai. Encourage foreign trade enterprises to use the dedicated Internet data channels for digital marketing. Perfect the layout of the international mail exchange bureau (exchange station) and the international express mail handling . Urge the starting of regular China-Europe trains. (Responsible departments and units: the Municipal Commission of Commerce, Shanghai Customs, the Municipal Transportation Commission, China Railway Shanghai Group, and Administration of Hongqiao International Central Business District)

Enhancing the Digital Marketing Capabilities for Trade. Accelerate the digital transformation of traditional economic and trade exhibitions, support the integrated development of online and offline exhibitions, and support foreign trade enterprises to carry out presentations, negotiations, cooperation, and online contracting by new models such as "cloud display", "cloud docking", and "cloud contracting". Further promote the name brand of "Outbound Premium", and hold a series of activities such as "Cloud Shopping in Shanghai" and "E-Road with You" to support e-commerce platforms to empower traders and manufacturers to transform and develop. Support enterprises to build online marketing networks for overseas markets, and expand new channels for foreign trade enterprises to develop international markets. (Responsible department: the Municipal Commission of Commerce)

10. Urging the System Innovation for Cross-border E-commerce. Deepen the construction of comprehensive pilot zones for cross-border e-commerce, and set up a batch of cross-border e-commerce demonstration parks at air and sea ports, customs special supervisory control areas and advantageous industrial belts. Perfect the software and hardware infrastructure for public service platforms of the cross-border e-commerce to ensure that the convenience for customs clearance on the platform remains at the forefront of the country. Consolidate the implementation of shipping list models for the exports of cross-border e-commerce in special zones and B2B exports of cross-border e-commerce. Continuously push forward the development of B2B exports of cross-border e-commerce, and strive for the large-scale development of shipping channels and postal channels, and guide more enterprises to participate in the new business pilots. Accelerate the construction of working sites for general exports of cross-border e-commerce under the  customs’ supervisory control, and support the inclusion of exports of cross-border e-commerce through postal channels into the city's cross-border e-commerce trade statistics. (Responsible departments: the Municipal Commission of Commerce, Shanghai Customs, and the Municipal Development & Reform Commission)

11. Cultivating Local Overseas Warehouse Enterprises. Support logistics, platforms or trading enterprises to jointly build and share overseas warehouses, enrich the functions of overseas warehouses, and expand the scope of services. Encourage overseas warehouse enterprises to be connected with cross-border e-commerce public service platforms and e-commerce platforms to match supply and demand information. Optimize policy measures for express delivery, support overseas warehouse enterprises to establish and perfect the logistics system, extend the service to the upstream and downstream of the supply chain, and explore the construction of an intelligent platform for overseas logistics. Support export commodities to enter the customs special supervisory control zone according to general trade method and then to be exported through cross-border e-commerce. (Responsible departments and units: the Municipal Commission of Commerce, Shanghai Customs, the Municipal Development & Reform Commission, the Municipal Transportation Commission, the Municipal Postal Administration, Pudong New Area People’s Government, Lin-gang Special Area Administration, and Administration of Hongqiao International Central Business District)

12.  Speeding up the Development of Digital Trade. Focus on the key fields such as cloud services, digital contents and digital services, focus on the development of new forms of business and new models such as the internet audio-visual platforms, digital supply chain platforms and digital marketing platforms, and release leading cases on innovation of digital trade enterprises. Support multinational companies of digital trade to establish their regional headquarters, R&D s, and technology institutions in Shanghai to enhance the capability of allocating regional resources. Push forward the construction of the Pudong Software Park as a national digital service export base, urge the global digital trade port in Hongqiao International Central Business District to be the first to take the leading position as a global digital trade port, actively create the Hongqiao Airport as a national digital service export base, and raise the energy level of the international data port in Lin-gang Special Area. Build a platform for promoting digital trade transactions, deepen the application of blockchain and big data technology, and enhance the function of online cross-border settlement. (Responsible departments and units: the Municipal Commission of Commerce, Office of Shanghai Municipal Commission of Cyberspace Affairs, the Municipal Commission of Economy and Informatization, Pudong New Area People's Government, Lin-gang Special Area Administration, and Administration of Hongqiao International Central Business District)

13.  Cultivating the Eco-chain for Digital Trade. Encourage leading foreign trade enterprises to take the lead in digital transformation and digital reconstruction of all trade scenarios and chains, such as product research and development, manufacturing, logistics and customs clearance, customer management, supply and purchase, so as to drive the digital transformation of upstream and downstream enterprises. Support traditional foreign trade enterprises to use such technologies as cloud computing, artificial intelligence, and virtual reality to strengthen R&D and design, and carry out the intelligent, personalized and customized production. Cultivate a group of professional service agencies for digital transformation of the trade industry to provide comprehensive services such as online customs declaration, agent of export tax refund, collection and settlement of foreign exchange, export credit and insurance, and cross-border finance in the fields of trade finance, comprehensive services for foreign trade, international logistics and overseas post-sales service. (Responsible departments: the Municipal Commission of Commerce, and the Municipal Commission of Economy and Informatization)

IV. Accelerating the Construction of a New Environment for Trade Innovation and Upgrading the Soft Power of Trade Development

14. Enhancing the Ability of Planning and Cradling the Innovation and Development of Trade. Strengthen the original innovation and integrated innovation, and support foreign trade enterprises to optimize their layout in the international markets by means of trade innovation. Guide enterprises to innovate cooperative methods with foreign companies, optimize resources, name brands and marketing channels, and cultivate a group of leading enterprises with strong innovation capabilities and international competitiveness. Input innovative elements, promote the industrial transformation and upgrading, optimize the structure of export products, raise the export capacity of key industries, urge the industrial chain to be opened up to the international market and to gain an international cooperation, and cultivate the core driving force of the innovation and development of trade. (Responsible departments: the Municipal Commission of Commerce, and the Municipal Commission of Economy and Informatization)

15. Supporting Enterprises to Actively Comply with the High-standards of International Trade Rules. Raise enterprises’ ability to use international agreements and increase their utilization rate of free trade agreements. Urge the preparations for the implementation of RCEP tariffs, and guide enterprises to use reciprocal measures such as tariff concessions, cumulative rules of origin, open market access, and simplified customs clearance procedures to gradually expand the scale of trade with  countries under the RCEP. Strengthen the publicity on key markets, promptly release policies and market information, and enhance foreign trade enterprises’ ability to undertake business. (Responsible departments: the Municipal Commission of Commerce, and Shanghai Customs)

16. Perfect the Fault-tolerance Mechanism for Trade Innovation. The acts with non-subjective intention and rectifiable made by foreign trade enterprises in the foreign exchange settlement and tax payment, in accordance with the provisions, shall not be included in the list of cross-border RMB business under focal supervisory control. Strengthen the construction of the customs credit system and urge the construction of the customs credit restoration mechanism. Actively deepen the application of subjective disclosure, and perfect the fault-tolerance mechanism of customs’ post-event supervision. Accelerate the model of accepting the supervision of a third-party for imported goods for creditworthy enterprises, implement catalog administration to the credit trustworthy inspection and testing agencies, and strengthen the on-processing and post-event supervision. (Responsible departments: Shanghai Branch of the People's Bank of China, and Shanghai Customs)

17. Encouraging Innovation of Financial Services for Trade. Support the construction of a service platform for cross-border RMB transfer business of trade finance in Shanghai, and raise the efficiency of information transmission and transaction among entities of trade finance in cross-border RMB business. Give full play to the role of export credit insurance, focus on the service trade, cross-border e-commerce, overseas warehouses and other new forms of business and new models of foreign trade, implement more active underwriting policies and more perfect supporting measures for claims, and strengthen the innovation of product models. Explore new models of policy financing, and continuously expand the coverage of export credit insurance and the scale of policy financing. (Responsible departments and units: Shanghai Branch of the People's Bank of China, the Municipal Commission of Commerce, the Municipal Financial Regulatory Bureau, Shanghai Banking and Insurance Regulatory Bureau, Shanghai Branch of China Export & Credit Insurance Corporation)

18. Raising the Facilitation of Foreign Exchange Receipts and Payments Related to New Forms of Business and New Models of Foreign Trade. Support cross-border e-commerce to use net settlement between overseas fees and export payments, and the export declaration amount of goods exported to overseas warehouses may not be the same as the actual inward remittance from sales income. The international mailing enterprises, logistics enterprises, and cross-border e-commerce platform enterprises at home can provide customers with reimbursed overseas expenses related to cross-border e-commerce. Provide convenience for individuals engaged in cross-border e-commerce to handle foreign exchange settlement related to cross-border e-commerce through personal foreign exchange accounts. For any domestic individual who handles foreign exchange settlement and sales under the cross-border e-commerce item and provides proof of transaction volume or transaction electronic information, the personal annual facilitation quota will not be counted as being used. Eligible foreign trade comprehensive service enterprises are allowed to handle export proceeds in foreign exchange as entrusted by their clients. (Responsible departments: Shanghai Branch of State Administration of Foreign Exchange)

19. Strengthening the Enforcement of Competition Policies. Give full play to the role of anti-monopoly and anti-unfair competition regulations, strengthen the research on the frontline enforcement of competition policies in the field of new business of foreign trade, and focus on preventing and stopping the monopoly and unfair competition acts in the field of new forms of business of foreign trade, protect the fair competition, and maintain the foreign trade in a good order. (Responsible departments: the Municipal Administration for Market Regulation, and the Municipal Commission of Commerce)

Raise the Level of Intellectual Property Right Protection in International Trade. Perfect the assistance mechanism for this Municipality’s overseas intellectual property right protection, strengthen the administrative guidance for enterprises on their overseas intellectual property right protection, and carry on the plans to cultivate high-class talents in foreign-related intellectual property right. Perfect a plural dispute resolution mechanism of intellectual property right, continuously support Shanghai  of the WIPO Arbitration and Mediation to carry out arbitration and mediation services for foreign-related intellectual property right in Shanghai, and popularize the WIPO arbitration and mediation services. Strengthen the intellectual property right protection in import and export, raise the law enforcement level of intellectual property right on the border, establish the customs protection  for intellectual property right of science and technology enterprises, and establish a mechanism for quickly and conveniently protecting intellectual property rights and a joint training and cultivating mechanism for intellectual property right protection. (Responsible departments: the Municipal Commission of Commerce, the Municipal Intellectual Property Administration, Shanghai Customs, and Shanghai Science and Technology Innovation Office)

Strengthening the Establishment of Industry Organizations and the Cultivation of Professional Talents. Support the norms and self-discipline conventions for industry service by industry organizations in the field of new forms of business of foreign trade, and encourage the establishment of relevant industry organizations in the field of new forms of business of foreign trade. Support general universities and vocational colleges to set up relevant majors. Guide general universities and vocational colleges to cooperate with enterprises to cultivate management talents and high-quality technical and skilled talents to meet the needs of the development of new forms of business and new models of foreign trade. (Responsible departments: the Municipal Commission of Commerce, the Municipal Education Commission, and the Municipal Civil Affairs Bureau)

V. Accelerating the Perfection of the Guarantee System for Trade Innovation and Consolidating the Foundation for Trade Development

22.  Strengthening the Organization and Leadership of Trade Innovation. Give full play to the cooperation mechanism between Shanghai Municipality and the Ministry of Commerce, and between Shanghai Municipality and the General Administration of Customs, and arrange in an overall manner the coordinated development of traditional trade, new types of trade and service trade. All districts and all relevant departments shall, according to the division of functions and duties, cooperate closely, and formulate relevant measures in time. The Municipal Commission of Commerce shall strengthen the guidance in conjunction with relevant departments and units to ensure that all measures are fully and  effectively implemented. (Responsible departments and units: the Municipal Commission of Commerce and other relevant departments, all district people’s governments, and other relevant units)

23. Increasing the Dynamics of Policy Support for Finance and Taxation. Under the premise of complying with the rules of World Trade Organization, further perfect the methods of using government financial funds to support new forms of business and new models of trade, optimize the supporting structure of municipal and district finance, and encourage all districts to formulate relevant supporting policies. Optimize the document filing system for export tax rebate, implement a paperless pilot for document filing, and allow approved enterprises to choose the forms of documents retention on their own. (Responsible departments and units: the Municipal Commission of Commerce, the Municipal Finance Bureau, the Municipal Tax Service, and all district people’s governments).

24. Strengthening the Risk Prevention and Response Capabilities in Trade. Establish the management system of trade adjustment and assistance, optimize the function of workstations monitoring the industrial safety, and establish a guarantee mechanism for regional industrial damage and safety in this Municipality. Strengthen the response to trade frictions, build a special industry workstation and training platform to deal with trade frictions, and establish Shanghai legal service platform for the compliance with the international economic and trade rules. (Responsible departments: the Municipal Commission of Commerce)

25. Deepening the International Exchange and Cooperation in Economy and Trade. Give full play to the role of industry associations, academic institutions and other social organizations, and strengthen the cooperation and exchange with overseas international institutions. Vigorously develop E-commerce on the Silk Road and strengthen the economic and trade cooperation jointly with the construction of the Belt and Road. Strengthen the theoretical research and experience summary, and participate in the formulation of international rules and standards for new forms of business and new models of foreign trade based on the mature domestic rule system. (Responsible departments: the Municipal Commission of Commerce)

26. Strengthening the Publicity and Guidance of New Forms of Business  of Foreign Trade. Continuously summarize and popularize good experience and practices. Strengthen the guidance on public opinions, introduce and publicize the achievements of the development of new forms of business and new models of foreign trade. Actively create a friendly environment that encourages innovation, that is full of vitality, that is featured by fair competition, that is regulated and orderly, and that encourages the healthy, sustainable, and innovative development of new forms of business and new models of foreign trade. (Responsible departments and units: the Municipal Commission of Commerce, the Municipal Government Information Office, and all relevant units)