New measures to facilitate cross-border trade at Shanghai ports

The Shanghai Municipal Commission of Commerce, in collaboration with eight other authorities, unveiled a series of measures on May 31 designed to streamline cross-border trade operations at the city's entry and exit ports.

Entitled "Several Measures for the 2024 Special Action Plan to Promote Cross-Border Trade Facilitation at Shanghai Ports", the document outlines 34 initiatives across six key areas. These include enhancing customs clearance efficiency, upgrading smart port technologies and capabilities, and reducing associated fees.

The eight other authorities are:

Shanghai Customs

Shanghai Municipal Commission of Transport

Shanghai Municipal Administration for Market Regulation

Shanghai Municipal Development and Reform Commission

Shanghai Municipal Commission of Economy and Informatization

Shanghai Medical Products Administration

Shanghai Municipal Bureau of Ecology and Environment

Shanghai Municipal Commission of Science and Technology

Here are the highlights from the document.

I. Enhance the efficiency of customs clearance for imported and exported goods

1. Further reduce the overall customs clearance time at ports

Shanghai will establish a monitoring system for the overall clearance time at its ports, leveraging the Shanghai International Trade Single Window platform. This system will gradually encompass all aspects and stages of the clearance process.

Additionally, efforts will be made to promote transparency in operational processes and service hours for facilities such as air cargo storage areas and distribution warehouses. Encouragement will be given for these facilities to provide round-the-clock services.

Furthermore, shipping companies or their agents will be encouraged to open bills of lading before the arrival of ships.

2. Further reduce the time needed for quarantine approval

Shanghai will consistently work on reducing the processing time for quarantine approval of imported food by introducing "approval upon reporting" for eligible applications. Additionally, it will implement "review upon reporting" for quarantine approvals of eligible animals and plants and their products.

3. Further enhance the efficiency of customs clearance for fresh or live agricultural products

Shanghai will set up a "green channel" for customs clearance of fresh or live agricultural products transported by air and provide 24/7 inspection services for these products by appointment.

4. Enhance regional collaboration to streamline customs clearance processes

Shanghai will enhance the coordination mechanism for customs clearance in the Yangtze River Delta region. This initiative will promote convenient clearance models, including joint loading and unloading services for other ports in the region, and departure confirmation, to improve regional logistics efficiency and advance the development of multimodal transport.

The city will expedite the development of inland container terminals in the Yangtze River Delta region, bolster cooperation with ports along the river and coast, and strengthen Shanghai's port capacity to provide services for the surrounding hinterland.

5. Enhance the capabilities of customs technical institutions

Shanghai will intensify efforts to elevate the capabilities of customs technical institutions. This includes the strategic allocation of testing resources, enhancing the efficiency of sending samples for laboratory testing at ports, and improving the overall efficiency of laboratory testing processes.

The progress of laboratory testing can be monitored through the Shanghai International Trade Single Window platform, thereby increasing transparency in the testing procedures.

6. Optimize customs advance ruling management

Shanghai will broaden the eligibility criteria for applying for advance rulings in customs. It will introduce a pilot program for advance rulings in the China (Shanghai) Free Trade Zone and its Lin-gang Special Area, catering to overseas exporters and manufacturers.

II. Further promote trade facilitation for emerging growth sectors in foreign trade

7. Support the growth of high-tech enterprises

Shanghai will enhance its support for high-tech enterprises by extending the provision of specialized inspection areas for high-tech goods that require unique inspection conditions, such as vacuum packaging.

Moreover, it will broaden the eligibility criteria for applying for tariff reductions and exemptions through the "online ERP declaration + rapid review" model, thereby improving the efficiency of processing tariff reductions and exemptions.

8. Simplify import/export processes for biopharmaceutical R&D materials and special items

Shanghai will enhance a pilot program aimed at establishing a white list tailored for biopharmaceutical companies and research institutions to import materials intended for research and development activities. Items included in this list will be exempt from the Clearance Certificate for Import of Drugs requirement. The city will regularly update the white list based on the pilot's progress and the requirements of enterprises.

Furthermore, Shanghai will enhance the collaborative supervision mechanism for the import and export of special items, streamline the approval process, and accelerate customs clearance procedures.

9. Foster cross-border free movement of scientific research equipment and consumables

In the case of medical devices designated for research and development endeavors that are already available on the market in foreign countries but have not been registered in China, companies are allowed to import them under the condition that they can implement rigorous self-management practices to guarantee safety.

10. Promote the pilot import of discarded key components for automotive R&D testing

Shanghai will establish a pilot program for importing discarded key components for automotive R&D testing. The city will regularly publish a list of pilot companies and imported products for R&D testing to ensure the safe and standardized importation of products on the 'pilot list'.

11. Enhance support services for cross-border e-commerce activities

Shanghai will enhance support services for cross-border e-commerce activities by promoting electronic payment of import duties.

The city will also assist enterprises in conducting pilot retail exports of parcels in special customs supervision areas for cross-border e-commerce.

Furthermore, it will encourage enterprises to expand the scale of B2B exports for cross-border e-commerce and explore the implementation of the maritime export clearance list model for cross-border e-commerce.

12. Support information sharing for processing trade enterprises

Shanghai will encourage enterprises to participate in the "bonded + ERP" supervision reform by connecting enterprise ERP / WMS systems with the customs system. This will enable automatic data collection by customs regarding the production and operations of enterprises for customs supervision.

13. Promote pilot reform of single-unit consumption for processing trade

Shanghai aims to streamline the pre-declaration approval procedures for single-unit consumption and align them with the credit ratings of processing trade enterprises.

The city will overhaul the existing supervision model for single-unit consumption standards, eliminating rigid management requirements and transitioning these standards into parameters for a more flexible, parameterized management approach.

14. Accelerate establishment of carbon footprint management system for products

Shanghai is promoting the collaboration of industry associations, enterprises, research institutes, and other organizations to conduct research on developing carbon footprint calculation rules and standards. Initially focusing on key import and export products, this initiative aims to define the boundaries, calculation methods, and data quality requirements for carbon footprint calculation.

The city will incentivize enterprises to adopt environmentally friendly and low-carbon practices in their supply chains by integrating a carbon calculation feature for the logistics stage with a simple click on the Shanghai International Trade Single Window platform.

15. Support development of international transshipment and consolidation services

Shanghai is encouraging the early entry of consolidated container export goods into international transshipment and consolidation warehouses, aiming to bolster Shanghai Port’s role as a key international transshipment and consolidation hub.

III. Support integrated development of trade in services and goods

16. Enhance efforts to address technical trade measures

Shanghai will advance surveys on the impact of foreign technical trade measures and assist in improving the General Administration of Customs' "Database of Key Enterprises for Addressing Foreign Technical Barriers."

The customs-enterprise liaison officer system should be utilized effectively to help these enterprises proactively address these measures.

17. Optimize financial services for cross-Border trade

Shanghai will further enhance cooperation between the Shanghai International Trade Single Window platform and financial institutions, including banks and insurance companies.

In accordance with data security requirements, the Shanghai International Trade Single Window platform will support financial institutions in enhancing risk control models, streamlining review processes, and improving the overall quality and efficiency of cross-border trade financial services. This will be achieved by leveraging the platform's capabilities in big data analysis.

18. Enhance China-Europe Railway Express

Shanghai will encourage companies operating China-Europe freight trains to enhance their overseas logistics networks. This entails bolstering capabilities at international logistics hubs for multi-modal transportation, transshipment, and distribution. Additionally, these companies are encouraged to broaden the range of cargo transported on return trips to China.

IV. Enhance smart port technologies

19. Promote electronic sharing and online verification of relevant certificates

Shanghai will advance the utilization of electronic versions of Inspection and Quarantine Certificates for Inbound Goods.

The city will also engage in electronic exchange of origin information with partners of free trade agreements such as the Regional Comprehensive Economic Partnership.

20. Explore remote supervision

Shanghai will explore the implementation of remote mobile supervision in various areas, including local inspections and verifications.

Efforts will be made to coordinate inspection requirements, enabling multiple inspections for the same entity during the same period to be carried out collectively, thereby reducing the need for repeated factory visits.

21. Promote paperless trade

Shanghai will actively promote the adoption of electronic release platforms for import containers, encouraging shipping companies and port enterprises to expand the use of paperless bills of lading, leveraging technologies such as blockchain.

Additionally, initiatives will be undertaken to streamline the circulation and facilitate cross-chain collaboration of electronic bills of lading, utilizing blockchain and other technologies.

22. Enhance airport cargo technologies

Shanghai will bolster airport capabilities by developing intelligent cargo terminals and import-export cargo inspection centers.

Furthermore, the city will enhance the public information platform for air logistics within the Shanghai International Trade Single Window, facilitating information exchange among diverse market entities and fostering seamless information integration throughout the entire aviation logistics chain.

23. Explore Single Document Dual Customs Reporting based on pre-recorded data

Shanghai will explore pilot programs to implement Single Document Dual Customs Reporting with neighboring economies, utilizing pre-recorded data, while ensuring compliance with data security requirements.

24. Improve functions of Shanghai International Trade Single Window platform

Shanghai will upgrade the mobile application for the platform, enabling support for a broader range of business activities. This upgrade will empower cargo owner enterprises to conveniently manage their foreign trade affairs anytime, anywhere. Additionally, leveraging big data and blockchain technologies, the platform will develop a model for foreign trade financial risk control, further streamlining international trade settlements.

A new module will be introduced to the platform for reporting border inspection permits. This addition will streamline inspections in restricted port areas for personnel boarding ships and for ships docking there, while also supporting the management of visitors in port areas.

25. Promote of smart port construction

Shanghai will promote the automation of traditional terminal facilities and equipment.

It will also enhance the integration of smart port technologies into the port system, thereby increasing the capacity for seamless machine inspections at the fourth-phase terminal of Yangshan port.

Efforts will be made to promote the testing and application of autonomous intelligent vehicles within ports.

V. Standardize and reduce the import/export fees

26. Carry out Action Plan for Clearing and Standardizing Maritime Port Charges

Shanghai will publish a comprehensive list of port charges, prohibiting any charges not included in the list.

Additionally, it will enhance supervision over these fees, establish channels for reporting illegal practices, and address violations including non-compliance with government pricing regulations, failure to clearly display prices as mandated, price manipulation, and non-adherence to preferential fee reduction policies.

27. Reduce shipping fees on domestic freight

Shanghai will waive shipping fees and associated charges from the dutiable value of imported goods for the domestic segment of transportation on eligible China-Europe freight trains for the return journey.

28. Standardize charges across the import/export processes

Entities responsible for port fee charging will be directed to promptly disclose fee standards, service items, and other relevant information through the Shanghai International Trade Single Window platform, with regular updates.

This practice will extend to emerging business models such as cross-border e-commerce, covering maritime, air, and land ports.

All information will be accessible via the platform's mobile application.

VI. Enhance satisfaction for enterprises and the public

29. Build a comprehensive global trade information portal

30. Expand the scope of import/export commodity inspection by credited third parties

31. Enhance support for AEO trade firms

32. Encourage voluntary disclosure by trade firms

33. Improve communication with trade firms

34. Improve trade-conflict response mechanism