On September 27, at the State Council's regular policy briefing, the Ministry of Commerce stated that in the first eight months of this year, China's import and export volume reached 27.3 trillion yuan, a year-on-year increase of 10.1%. China's foreign trade once again showed strong resilience and vitality.
Foreign trade exports usher in the peak season of Q4. What are the latest policies? What kind of help can foreign trade enterprises and cross-border e-commerce get from it?
01 Ministry of Commerce
On September 27, 2022, the Ministry of Commerce issued the "Several Policies and Measures to Support the Stable Development of Foreign Trade" (referred to as: Measures). He said that opening up is China's basic state policy, import and export strongly supports stable growth and employment, and efforts should be made to stabilize foreign trade. The measures focus on:
Guarantee production and contract performance, and support competitive products to develop international markets.
Actively support enterprises to participate in various exhibitions to grab orders.
The online exhibition of the 132nd China Import and Export Fair (Canton Fair) will be successfully held. To expand the scope of exhibitors, in addition to the 25,000 exhibitors in the physical exhibition, all companies that meet the eligibility criteria for exhibitors are supported to apply for participation voluntarily.
Give play to the role of foreign trade innovation platform. Quickly set up a batch of new pilot projects for market procurement trade methods, import trade promotion innovation demonstration zones, and cross-border e-commerce comprehensive pilot zones.
Further play the role of cross-border e-commerce in stabilizing foreign trade. Introduce policies and measures to further support the development of cross-border e-commerce overseas warehouses.
Further promote unimpeded trade. Improve the efficiency of port collection and distribution and domestic transportation, and ensure fast transit of import and export goods. Ensure the stability of the industrial chain and supply chain.
02 General Administration of Customs
At the regular briefing on policies of the State Council, the relevant person in charge of the General Administration of Customs General Administration introduced that since the beginning of this year, the General Administration of Customs has insisted on helping and benefiting enterprises, and has taken a series of targeted measures to help foreign trade companies expand their markets and solve problems. include:
Promote the reform of diversified tax guarantees at the customs, promote the guarantees of financial companies of enterprise groups, and further reduce the cost of corporate financing and customs clearance.
"One enterprise, one policy" helps "specialized, special and new" enterprises and leading industrial enterprises to make good use of preferential measures such as tax reduction and exemption, and the transfer of bonded materials.
Help enterprises make full use of policy dividends such as RCEP (Regional Comprehensive Economic Partnership), and implement import tax incentives such as free trade agreements.
03 Ministry of Finance
On September 18, the Ministry of Finance, the State Administration of Taxation, and the Ministry of Industry and Information Technology issued the "Announcement on Continuing the Policy on New Energy Vehicles Exemption from Vehicle Purchase Tax":
Vehicle purchase tax is exempted for new energy vehicles whose purchase date is between January 1, 2023 and December 31, 2023.
New energy vehicles exempt from vehicle purchase tax shall be managed through the “Catalogue of New Energy Vehicle Models Exempted from Vehicle Purchase Tax” (hereinafter referred to as the “Catalog”) issued by the Ministry of Industry and Information Technology and the State Administration of Taxation.
The date of purchase shall be determined according to the date of issuance of valid vouchers such as the uniform invoice for motor vehicle sales or the special payment letter for customs duties.
New energy vehicles that have been included in the "Catalog" before December 31, 2022 can continue to apply the vehicle purchase tax exemption policy in accordance with this announcement.
04 The central bank stabilizes the exchange rate
On September 26, the People's Bank of China announced that in order to stabilize foreign exchange market expectations and strengthen macro-prudential management, from September 28, 2022, the foreign exchange risk reserve ratio for forward foreign exchange sales will be raised from 0 to 20%.
According to Xinhua News Agency, the People's Bank of China raised the foreign exchange risk reserve ratio of forward foreign exchange sales business this time to stabilize foreign exchange market expectations and strengthen macro-prudential management.