Sofreight, a China-based international freight information platform, recently posted an article in its news section indicating that the Chinese central government has been considering and is now planning to remove all tariffs in the Shanghai Free-Trade Zone. In the midst of a grand trade war with the United States, the Chinese government wants to position itself as the leader of free trade. The plan may be announced within this year at the earliest. According to the draft plan, foreign companies will not pay any tariff for cargo staying in the Zone, with a much-simplified customs process. Currently, normal tariffs still apply to cargo in the Zone with Chinese Customs still administering them. Today, to establish a company registered in the Shanghai Free-Trade Zone, the process takes a few months, though the government claims it takes only five days. If the plan succeeds, it has the potential to be deployed to all of China’s free-trade zones. Neither officials in the Zone nor the Chinese National Development and Reform Commission (NDRC) responded to requests for confirmation or comments.
Source: Sofreight, August 6, 2019