Private businesses benefit from Shenyang customs policies

Staff members of Shenyang Taoxian International Airport Customs inspect imported fruits. [Photo/Chinanews.com]

The import and export trade volume of Liaoning private enterprises reached 232.95 billion yuan in 2018 ($34.84 billion), with a year-on-year increase of 19.9 percent.

Foreign trade growth rate of private enterprises in Liaoning is 8 percent higher than the growth of the provincial import and export trade.

During the last few years, the proportion of private enterprises undertaking foreign trade in Liaoning has increased steadily, accounting for 30.9 percent of the total value of Liaoning's foreign trade the last year, an increase of 2.1 percent over 2017.

In recent years, Shenyang customs has simplified customs clearance procedures and taken preferential policies to improve customs efficiency and stimulate import and export.

The number of inspection and supervision certificates was reduced from 86 to 48; number of items that require filing an application was reduced by 124 to 105; and the customs clearance process has been consolidated from 12 steps to seven.

Additionally, Shenyang customs introduced a tariff guarantee scheme with insurance companies providing warranties to banks in 2018, thus reducing the risks to banks that lend money to companies importing and exporting goods through Shenyang. 

Small and medium-sized companies often rely on short-term financing to pay customs tariffs incurred at the border, but many find loans difficult to access due to their small size. 

With the new scheme, more companies will be able to clear customs without waiting – leaving them with 30 days to pay any customs duties. 

Under the new initiative, goods should be able to clear customs within a matter of minutes, benefiting businesses and securing government tax revenues.

By the end of 2018, Shenyang customs had provided such services for 10 private enterprises, which involves total insurance coverage of 168 million yuan.

Also, Shenyang customs intensified efforts to encourage enterprises to apply for AEO certificate or improve their AEO certificate level.

AEO stands for "authorized economic operator". According to the World Customs Organization (WCO), an AEO is an organization or company involved in the international movement of goods that has been certified by, or on behalf of, a national customs administration and complies with WCO or equivalent supply chain security standards.

The holder of this certificate is entitled to benefits akin to obtaining a green permit for international trade; the transshipment of goods will be subject to fewer inspections and enjoy priority in clearance. The expedited customs procedures can significantly reduce the processing time and trade costs, which will boost business competitiveness.

Currently, there are 26 enterprises clearing customs through Shenyang that hold AEO certificates, and six of them are private enterprises.