Opinions Issued on Promoting the Steady Growth of Foreign Trade

Sept. 25 – With the aim to promote the steady growth of foreign trade and expand domestic employment, China’s State Council released “Several Opinions of the General Office of the State Council on Promoting the Steady Growth of Foreign Trade (guobanfa [2012] No. 49, hereinafter referred to as ‘Opinions’) on September 16. Key provisions of the Opinions can be found below.

Reinforcing efforts in export tax refunds and financial services

• Guiding financial institutions to release more foreign exchange risk hedging products
• Broadening financing channels for export enterprises and supporting commercial banks to increase loans to profitable export enterprises with orders in place which satisfy the prudent credit granting conditions under the principle of “controllable risks and sustainable business”
• Prohibiting the banking financial institutions from attaching unreasonable conditions during the granting of loans and illegally collecting service charges
• Facilitating financing for micro and small-sized enterprises and developing credit insurance for such enterprises

Facilitating export rebates

From October 1, 2012 to December 31, 2012, all entry/exit goods, transportation vehicles, containers and other statutory inspection and quarantine products will be exempted from paying entry inspection and quarantine fees, and the lowered “Fee-charging Standards for Entry-Exit Inspection and Quarantine” will be executed from January 1, 2013.

Improving trade environment

• Actively participating in the multilateral, regional and sub-regional cooperation mechanisms, such as G20 and the Shanghai Cooperation Organization
• Taking full advantage of platforms, such as high-level dialogues and bilateral economic and trade join commissions to strengthen the economic and trade cooperation with major trade partners

Optimizing trade structures

• Expanding the importation of advanced technological equipment, key parts and components, energy raw materials, and daily living necessities closely related to people’s lives
• Guiding processing trade to transfer from coastal areas to inland areas and concentrate in zones under special customs supervision
• Expanding the export of technology and labor-intensive mechanical and electronic products, high-tech and high value-added products, as well as energy saving and environmentally-friendly products

Strengthening organization and leadership

Strengthening the services provided to micro and small-sized enterprises to support them in getting orders and exploring the market.

---