Shipping & Logistics

Regulations Affecting Foreign-Funded International Freight Transportation Agencies in China

May 10 – In order to create a healthy environment for the development of China’s international freight transportation industry and to establish a regulatory system for business operations, the Ministry of Commerce issued the “Administrative Measures for Foreign-Funded International Freight Transportation Agency Enterprises (Order of the Ministry of Commerce [2005] No.19, hereinafter referred as the ‘Measures’) in 2005.

According to the Measures, foreign investors are allowed to establish foreign-funded international freight transportation agencies in China in the form of a joint venture or cooperation. From December 11, 2005, solely foreign-owned international freight transportation agencies are allowed in China with a minimum registered capital of US$1 million. Foreign investors may acquire established international freight transportation agencies through stock equity purchases. However, the ratio of the equity and investors’ qualifications shall comply with the requirements prescribed in the Measures. Relevant laws and regulations shall be followed if state-owned assets are involved. Continue reading →

Posted in Business, FDI and Foreign Trade, Shipping & Logistics | Tagged China FIEs, China Freight Forwarding, China Freight Transportation, China Logistics | Leave a comment

CEPA Rules of Origin for Hong Kong-Mainland Trade in Goods

Apr. 24 – In order to enjoy zero tariffs under the Closer Economic Partnership Agreement (CEPA), goods exported from Hong Kong to Mainland China must fulfill the rules of origin and show evidence of being “made in Hong Kong.”

The execution of the rules of origin is detailed in the “Customs Provisions of the People’s Republic of China on Executing the Rules of Origin for Trade in Goods under the Mainland/Hong Kong Closer Economic Partnership Arrangement (haiguanshuling No.106, hereinafter refers as ‘Provisions’),” which was promulgated in December 2003 and came in effect from January 1, 2004. Continue reading →

Posted in Business, FDI and Foreign Trade, Finance, Tax and Accounting, Legal and Regulatory, Manufacturing, Shipping & Logistics | Tagged CEPA, Closer Economic Partnership Agreement, Hong Kong, Made in Hong Kong | Leave a comment

South China’s Gaolan Port Economic Development Zone Promoted to NETDZ

Apr. 10 – In late March, China’s State Council approved the promotion of the Gaolan Port Economic Development Zone to become the first national economic and technology development zone (NETDZ) on the west bank of the Pearl River Delta. The newly-promoted zone has been named the “Zhuhai Economic and Technological Development Zone.”

Gaolan is roughly 83 kilometers away from Hong Kong, 42 kilometers from Macao, 150 kilometers from Guangzhou, and 180 kilometers from Shenzhen. The 380-square-kilometer Gaolan Port Economic Development Zone was established in 2006 by the government, with the municipal-level administrative authorities and independent financial management power. It is one of the most important large-scale comprehensive harbor industry zones of South China, with a focus on the equipment manufacturing, petrochemical and energy industries. Continue reading →

Posted in Business, FDI and Foreign Trade, Shipping & Logistics, South China | Tagged Development Zones, Gaolan, Gaolan Port Economic Development Zone, South China, Zhuhai Economic and Technological Development Zone | Leave a comment

The Chongqing-Xinjiang-Europe International Railway

By Julia Gu

Feb. 20 – Since separating from Southwest China’s Sichuan Province in 1997, the municipality of Chongqing has emerged as one of China’s fastest developing regions and is regarded by Beijing as the epicenter of the country’s “Go West” campaign.

Last year, the province-sized city with a population of 28.85 million attracted US$11 billion in foreign direct investment and its GDP grew 16.5 percent year-on-year to RMB920 billion (US$145 billion). According to the Chongqing municipal government, the city expects 13.5 percent GDP growth this year. Continue reading →

Posted in Automotive, Business, Economy and Politics, FDI and Foreign Trade, Shipping & Logistics, West China | Leave a comment

China Grants Tax Incentives to Logistics Industry

Feb. 6 – In a move to further boost its logistics industry, China is now allowing logistics enterprises to pay less urban land use tax (ULUT) on lands occupied by their commodity warehouses.

According to the “Circular on the ULUT Policy Concerning the Lands Occupied by Logistics Enterprises’ Commodity Warehousing Facilities (caishui [2012] No. 13)” co-issued by the Chinese Ministry of Finance and State Administration of Taxation, between January 1, 2012 and December 31, 2014, land occupied by a logistics enterprise’s self-owned commodity warehousing facilities (for both self-use and renting out) are subject to 50 percent of the ULUT those enterprises were originally supposed to pay based on related regulations. Continue reading →

Posted in Business, Finance, Tax and Accounting, Legal and Regulatory, Regulatory Update, Shipping & Logistics | Tagged China Logistics, China Logistics Industry, China Shipping, China Urban Land Use Tax, China Warehousing Facilities | Leave a comment

Zhejiang to Invest RMB2 Billion into Oceanic Economy

Jan. 17 – In order to exploit its massive “oceanic productivity potential,” the Chinese eastern coastal province of Zhejiang is looking to establish a special RMB1 billion fund for the development of its oceanic economy, and another separate RMB1 billion fund for the promotion of its oceanic industries.

The RMB2 billion investment will mainly focus on the advancement of emerging oceanic industries, the development as well as protection of important islands, the expansion of bulk commodity exchange centers, and the improvement of port logistics information interconnection as well as interchange throughout Northeast Asia. Continue reading →

Posted in East China, FDI and Foreign Trade, Shipping & Logistics | Tagged China Bulk Commodity Exchange, China Logistics, China Oceanic Industries, China Shipping, China Uninhabited Island Development, China Zhejiang Oceanic Economy, Northeast Asia Port Logistics, Zhejiang Zhoushan Archipelago | Leave a comment

China Specifies Services Eligible for Zero VAT Rate and VAT Exemption

Jan. 10 – The beginning of China’s pilot value-added tax (VAT) reform has aimed to make transport services and a list of modern services in pilot areas subject to VAT, instead of business tax. Recently, as a new update to the implementation details of the ongoing VAT reform, China’s Ministry of Finance (MoF) and State Administration of Taxation (SAT) clarified that some of these VATable services can enjoy zero VAT rate and VAT exemption.

Zero VAT rate
According to the “Circular on the Application of Zero VAT Rate and VAT Exemption on VATable Services (caishui [2011] No. 131)” issued on December 20, 2011, the following VATable services provided by taxpayers in pilot areas are subject to the zero VAT rate: Continue reading →

Posted in Business, East China, Finance, Tax and Accounting, Legal and Regulatory, Regulatory Update, Shipping & Logistics | Tagged China Tax, China Tax Exemption, China Tax Rebates, China VAT Exemption, China VAT Reform, China Zero VAT Rate, Deduction and Refund, Shanghai VAT Reform | Leave a comment

China Briefing Releases New Business Guide for the Greater Pearl River Delta

Dec. 14 – China Briefing has just released the fourth edition of its regional business guide “The Greater Pearl River Delta: Business Guide to South China” – offering business-minded individuals an up-to-date reference source for all of the key issues concerning setting up and successfully operating a business in South China.

By leveraging its proximity to the special administrative regions of Hong Kong and Macau, the Pearl River Delta (PRD) became the “Greater PRD” – China’s manufacturing heart and a region connected not only through financial ties but through a web of government initiatives to encourage its integration. This has included Closer Economic Partnership Arrangements and massive infrastructure developments such as the Hong Kong-Zhuhai-Macau Bridge.

Having risen to prominence around the pillar cities of Guangzhou and Shenzhen, the Greater PRD today is the home of high-technology in China. While Hong Kong is the regional management center for many high-technology firms, Shenzhen, Dongguan, and Guangzhou are being joined by Zhuhai and Huizhou as centers for the manufacturing of high-technology goods. Continue reading →