Since 2020, local customs departments have issued policies to support foreign trade enterprises to change the development path and realize "walking on two legs" in domestic and international markets.
We will improve services and simplify procedures, actively implement preferential tax policies, and strengthen guidance and targeted assistance. The customs department has launched a "combination of policies" to support foreign trade enterprises to explore the domestic market, which not only further enriches the supply in the domestic market, but also helps fully release the potential of domestic demand and accelerate the construction of a new development pattern.
Recently, in the workshop of Guangdong Weifu Packaging Material Co., Ltd. located in Puning City, Guangdong Province, the production line of plastic film is running at full speed, and the thin plastic film is constantly being sent to the finished product packaging workshop.
"This food-grade plastic film product has won many domestic customers after the customs and other departments issued policies in 2020 to support foreign trade enterprises to explore the domestic market." The company's domestic sales of exported products reached 15.86 million yuan in 2020, a 10.48-fold increase over 2019, said Zhu Chuxin, head of customs clearance at the company.
Since 2020, affected by the epidemic, overseas demand has fluctuated, and foreign trade and export enterprises have been under great pressure. While actively expanding the international market and stabilizing overseas orders, some enterprises try to "walk on two legs" and focus on developing the domestic market. Local customs departments have made good use of a combination of policies to support foreign trade enterprises in changing their development paths and sharing the "cake" of domestic demand.
Simplify procedures and provide convenience
The relevant person in charge of the enterprise management and inspection department of the General Administration of Customs said that for a long time, processing trade mainly takes the form of "both ends outside", and the proportion of sales in the domestic market is relatively small. In recent years, with the accelerating transformation and upgrading of the industry, processing trade has changed from "both ends outside" to "two markets and two resources", and enterprises have a stronger demand to develop the domestic market. In June last year, the General Office of the State Council issued a guideline on facilitating foreign trade enterprises to explore the domestic market in such aspects as market access, certification procedures and time limits for tax collection.
"Affected by the overseas epidemic, overseas customers' orders have changed frequently, so we have increased our efforts to explore the domestic market. Guangzhou Customs has launched centralized taxation service for foreign trade enterprises to explore the domestic market, which reduces the number of times of our declaration and greatly reduces the operating cost of enterprises." Panasonic Manbao Health Appliances (Guangzhou) Co., Ltd. added four new production lines last year and increased production capacity of popular products such as haircuts and beauty machines by 50 percent, Wu Jianhua, head of the production management department, told reporters. Up to now, domestic sales have increased by 25% year on year, with online sales accounting for 75%.
Ningbo Asia Pulp and Paper Industry Co., Ltd. is an export-oriented paper products export enterprises, affected by the epidemic and other factors, last year the overseas market demand was weak, logistics costs rose, eager to develop the domestic market. Beilun Customs, a subsidiary of Ningbo Customs, has launched a new model of electronic account book management based on enterprises, which simplifies many business processes such as the domestic sale of processing trade goods, and provides convenience for enterprises to coordinate the domestic and international markets and resist the risks of international trade. Under this mode, enterprises have greater autonomy in material filing, domestic sales of goods and handling of verification and cancellation procedures. In particular, under the premise of not exceeding the validity period of the books, it can first sell bonded goods, and extend the tax period for domestic sales for a full quarter.
"This has effectively eased the financial pressure on enterprises, provided strong support for enterprises to flexibly connect domestic and international markets, expand sales channels and enhance business vitality." Ningbo Asia pulp and paper industry company customs affairs commissioner Ye Xianduan introduced, last year the company's processing trade domestic sales value amounted to 17.698 million dollars, a year-on-year increase of nearly 20 times.
Tax incentives to reduce costs
During the epidemic prevention and control period, Quanta Group's Dagong (Shanghai) Computer Co., Ltd. turned its attention to the domestic market. However, the export goods entering the domestic market are subject to not only tariffs, but also value-added taxes. In this case, the price alone exceeds the customer's expectation. How can the product still be competitive?
When Dagong was at a loss, Songjiang Customs, a subsidiary of Shanghai Customs, sent a "timely rain". According to the new policy of selective taxation of processing trade enterprises issued by the General Administration of Customs, Songjiang Customs suggested that enterprises pay duties on imported materials rather than finished products. For Dagong, the tariff of the former is only 0.97%, much lower than that of the latter, which provides strong support for the enterprise to lower the quotation and enhance the market competitiveness. "Now, our domestic orders have doubled, gradually opening up the domestic market," said Xu Rong, head of the customs department of Dagong.
Foshan Qunzhi Optoelectronics Co., Ltd. is a liquid crystal display panel manufacturer under the jurisdiction of Foshan Customs Office in South China Sea under Guangzhou Customs. With the support of the local customs, the enterprise actively develops domestic sales, and has sold goods worth about 477 million yuan to the domestic market since 2020.
"Our company belongs to the processing trade enterprises that deal with the declaration and tax payment of centralized domestic sales every month. According to Announcement No. 78 of the General Administration of Customs in 2020, the declaration and tax payment of enterprises for domestic sales will be changed from monthly report to quarterly report, which will simplify procedures and reduce operating costs, which is of great help to enterprises for domestic sales." GroupZhi optoelectronic logistics department manager Peng Fang said.
In addition, since the Guangzhou Customs implemented the policy of suspending tax interest on processing trade goods for domestic sales in the middle of April 2020, 915 enterprises have been taxed on domestic sales in total. In the second half of 2020, the value of processing trade in Guangzhou customs area increased by 35.17% compared with the first half.
Strengthen guidance and provide precise services
In Linyi, Shandong province, a group of tire manufacturers have gathered here, and the outbreak has put pressure on their exports. Linyi Customs, affiliated to Qingdao Customs, has set up industry coordinators to actively help foreign trade enterprises to solve the difficulties and obstacles in developing the domestic market, so as to realize the "on-demand" business, and support enterprises to carry out online auction of scrap materials from corners and corners, and sell them in grades and batches for domestic sales, so as to meet diversified domestic sales needs.
In Chongqing, Liangjiang Customs, which is affiliated to Chongqing Customs, has set up special posts, organized policy "cloud classes", arranged enterprise coordinators to help enterprises make good use of relevant policies, guide enterprises to change their thinking and effectively deal with the impact of the epidemic.
"Corporate coordinators have helped us a lot. The new policy has also helped us effectively explore the domestic market. Last year, the proportion of LCD monitors produced by enterprises for domestic sales has increased significantly." Chongqing Huike Jin Yang Science and Technology Co., Ltd. said the person in charge of the customs affairs.
"We have further simplified customs clearance procedures by introducing the 'One-Window All Procedures'." Beijing Customs Tianzhu Customs Deputy Commissioner Bai Yaduo, comprehensive bonded area and other customs special supervision area is the height of foreign trade development, but also affected by the epidemic. Beijing Customs has actively promoted the implementation of many tax policies and measures, such as tax reduction and exemption of epidemic prevention and control materials, temporary exemption of tax and interest for processing trade enterprises in domestic sales, to open up the domestic market for processing trade enterprises in the comprehensive bonded zone. By the end of 2020, Beijing Customs had handled 218 million yuan of tax deferral procedures for enterprises, effectively easing the financial pressure of enterprises.
Industry experts said that the entry of high-quality export products into the domestic market is not just a substitute relationship for the domestic market. In fact, this will not only divert trade, but also create trade. It will further enrich supply in the domestic market and upgrade consumption. At the same time, it will help fully unleash the advantages of China's huge market size and the potential of domestic demand, and accelerate the building of a new pattern of development in which domestic and international cycles play a dominant role and reinforce each other.