What are the suggestions from the Shenzhen representative members of the Two Sessions to promote the stable improvement of quality and quantity in foreign trade?
Hongyuan International Trade 2024-03-06 15:36 Shandong
This year, China's foreign trade will face an even more complex and severe external situation.
Minister of Commerce Wang Wentao previously stated at a press conference that in the future, he will expand the import of high-quality consumer goods, advanced technology, important equipment, and key components, increase the import of energy and resource products, and domestic scarce agricultural products (6.080%, 0.00%, 0.00%), play a good role in important exhibition platforms such as the Import Expo, expand diversified import channels, and improve the facilitation level of import trade.
This year's government work report proposes to promote the improvement and stability of foreign trade quality and quantity. Strengthen import and export credit and export credit insurance support, optimize cross-border settlement, exchange rate risk management and other services, and support enterprises in exploring diversified markets. Promote the healthy development of new formats such as cross-border e-commerce, optimize the layout of overseas warehouses, support the upgrading of processing trade, and expand new growth points such as intermediate goods trade and green trade. Actively expand the import of high-quality products. Fully implement the negative list of cross-border service trade, etc.
During the National People's Congress and Chinese People's Political Consultative Conference in Shenzhen, representatives of the National People's Congress and members of the National Committee of the Chinese People's Political Consultative Conference put forward suggestions on the negative list of cross-border service trade and cross-border e-commerce. Wang Lizong, member of the National Committee of the Chinese People's Political Consultative Conference and chairman of the Guangdong High tech Industry Association, suggested that the Ministry of Public Security and other departments further relax restrictions on the cross-border movement of natural persons from Guangdong, Hong Kong, and Macao in the field of professional talents; Lin Xiaohui, a member of the National Committee of the Chinese People's Political Consultative Conference, Weilu Group, and Chairman of Xianshi, suggested that the Ministry of Commerce accelerate the introduction of various sunshine and convenience policies to cultivate, guide, and support the compliant development of cross-border e-commerce enterprises.
Suggest building a "one exhibition, two locations" cross-border cooperation model
In July 2021, the first negative list of cross-border service trade in China, the "Hainan Free Trade Port Cross border Service Trade Special Management Measures (Negative List) (2021 Edition)", was released, achieving a significant change in China's service trade management model.
In November 2023, the Ministry of Commerce announced that it would actively connect with high standard international economic and trade rules, accelerate the introduction and implementation of the national and pilot free trade zone versions of the negative list for cross-border service trade, and form a system of gradient opening for cross-border service trade.
This year's government work report proposes to fully implement the negative list of cross-border service trade.
The negative list of cross-border service trade is a major model adopted by current international high standard free trade agreements in making opening arrangements in related fields. It is another major institutional opening measure in China after the negative list of foreign investment access, which helps to greatly improve the openness and convenience level of cross-border delivery, overseas consumption, and natural person flow.
For Shenzhen, with the issuance of the Overall Development Plan for Qianhai Shenzhen Hong Kong Modern Service Industry Cooperation Zone, Qianhai has been given a new positioning as a "Shenzhen Hong Kong Deep Integration Development Leading Zone", aiming to build a high-quality living circle for the international community and create a new home for Hong Kong and Macao residents.
In May 2022, Shenzhen submitted a request to the Ministry of Commerce regarding the issuance of the Special Management Measures for Cross border Service Trade in Qianhai Shenzhen Hong Kong Modern Service Industry Cooperation Zone towards Hong Kong and Macao (Negative List) (2022 Edition) by the Shenzhen Municipal People's Government. In November 2022, the Ministry of Commerce announced that it will coordinate the research and inclusion of measures related to reform and innovation in Qianhai in the national version of the negative list of cross-border service trade.
During the National People's Congress and the Chinese People's Political Consultative Conference, Wang Lizong suggested that the Ministry of Commerce and other departments study and accelerate the implementation of the national and free trade zone versions of the negative list for cross-border service trade, and make open commitments in the field of cross-border service trade in the form of negative lists. Areas outside the list will not be subject to additional restrictions, and foreign investment will be introduced to a greater extent, encouraging the expansion of service exports.
In addition, the facilitation level of cross-border movement of natural persons needs to be further improved. Wang Lizong suggested that the Ministry of Public Security and other departments further relax restrictions on the cross-border movement of natural persons from Guangdong, Hong Kong, and Macao in the field of professional talents.
For example, the exhibition industry has the characteristic of high personnel mobility, but in the context of the continuous deepening of "one exhibition, two locations" exhibition cooperation in Shenzhen, Hong Kong, and Macao, tourism visas and work visas in Shenzhen, Hong Kong, and Macao cannot meet the daily needs of organizers for round-trip travel between Shenzhen, Hong Kong, and Macao.
Wang Lizong stated that issuing specific talent visas for exhibition professionals can solve the problem of cross-border professional mobility in the open development of the exhibition industry. This will help promote the interconnection of exhibitions in the Guangdong Hong Kong Macao region, build a "one exhibition, two locations" cross-border cooperation model, and promote more global merchants to engage in commercial exchanges and tourism consumption in the Guangdong Hong Kong Macao region.
Suggest introducing compliance development policies for cross-border e-commerce enterprises
In addition to the negative list of cross-border service trade, "cross-border e-commerce" is also a hot topic in this year's two sessions.
This year's government work report proposes to promote the healthy development of new formats such as cross-border e-commerce, optimize overseas warehouse layout, support the upgrading of processing trade, and expand new growth points such as intermediate goods trade and green trade.
Currently, China's cross-border e-commerce is facing unprecedented development opportunities. In 2023, the import and export volume of China's cross-border e-commerce reached 2.38 trillion yuan, a year-on-year increase of 15.6%, of which the export volume was 1.83 trillion yuan, a year-on-year increase of 19.6%.
However, although cross-border e-commerce is developing rapidly, in Lin Xiaohui's view, cross-border e-commerce is still a "new thing" and needs to find a balance between promoting development and preventing risks.
In terms of corporate compliance, Lin Xiaohui bluntly stated that due to the dispersion of cross-border e-commerce orders, involvement of multiple regulatory departments, inconsistent statistical standards, and difficulty in technical integration, a large number of cross-border e-commerce transactions have missed customs declaration at customs, and there are no settlement and tax payment records. They are included in the statistical scope, have high compliance risks, and are also prone to breeding gray customs clearance markets.
According to Lin Xiaohui, the State Administration of Taxation has stipulated that cross-border e-commerce enterprises within the comprehensive trial zone can adopt the method of approved taxable income rate to determine and collect corporate income tax, and determine it based on a taxable income rate of 4%.
However, due to the high annual transaction volume of cross-border e-commerce enterprises, it is difficult for the 5 million yuan limit to meet the needs of enterprises, resulting in almost no enterprises paying income tax according to the approved collection system in actual business Lin Xiaohui said.
In this context, Lin Xiaohui suggests that relevant national departments support the pilot reform of e-commerce facilitation and compliance in Shenzhen.
In Lin Xiaohui's view, Shenzhen has a large volume of cross-border e-commerce transactions and meets the conditions for pilot projects. The scale of cross-border e-commerce in Shenzhen reached a new high in 2023, accounting for nearly 8% of Shenzhen's total import and export volume, and accounting for over 12.6% of the total scale of cross-border e-commerce in China.
In addition, Shenzhen has the advantages of leading demonstration zones and comprehensive reform pilot projects, as well as leading technologies such as artificial intelligence and blockchain, possessing technological and financial advantages. At the same time, Shenzhen is also the first cross-border e-commerce comprehensive pilot zone in the country to propose the concept of "sunshine", initiate sunshine pilot projects, and land sunshine pilot projects.
Lin Xiaohui suggested that the Ministry of Commerce accelerate the introduction of sunshine and convenience policies to cultivate, guide, and support the compliant development of cross-border e-commerce enterprises, and provide a stable policy cultivation period of 3-5 years.
In terms of tax refund, Lin Xiaohui suggests that the State Administration of Taxation study and pilot breaking through the current 5 million yuan limit for cross-border e-commerce, supporting professional foreign trade comprehensive service platforms to withhold and pay income tax for small and medium-sized enterprises, as well as to quickly handle tax refund business
At the same time, research and introduce facilitation policies to simplify cross-border e-commerce trade methods for export tax refunds, change the traditional concept of regulating cross-border e-commerce tax refunds with a big trade mindset, and support cross-border e-commerce enterprises that can obtain input invoices in compliance to smoothly refund taxes.