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      Nation's traders clearing customs electronically: report

      2014-05-16 15:11 China Daily Web Editor: Qin Dexing
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      The vast majority of the nation's importers and exporters use the e-clearance program known as Customs Paperless Reform, said a report released in Shanghai on Thursday.

      The report, based on PricewaterhouseCoopers LLP's annual survey of managing customs and international trade in China, covered 400 companies registered in China. It found that 82 percent are using e-clearance, a sharp increase from just 46 percent as recently as 2013.

      Among the survey participants, 51 percent of companies said they are engaged in processing trade, while the remaining 49 percent are involved in general trade. Participants came from many industries, including industrial products, vehicles, chemicals, technology, retail and consumer services, pharmaceuticals and healthcare.

      The General Administration of Customs announced on Wednesday that it will launch customs clearance reform in Beijing and Tianjin on July 1. The reforms will be expanded to neighboring provinces around October. Reform will also be undertaken in other areas, such as the Yangtze River Delta and Pearl River Delta, the Xinhua News Agency reported.

      "Trade facilitation improves the efficiency of goods movement, reduces supply chain barriers and lowers the costs of logistics while safeguarding legitimate government regulatory objectives," said Damon Paling, a partner who specializes in trade and customs issues in China for PwC.

      In the context of China's economic transformation, regulators are pursuing trade facilitation measures. At the same time, companies are moving to reduce customs duties in legitimate ways and cut supply chain costs to improve their operating performance, said Paling.

      The establishment of the China (Shanghai) Pilot Free Trade Zone has provided additional opportunities for bonded repair services, the report said.

      About 20 percent of companies plan to conduct bonded repair operations in the zone, said the report. In the FTZ, they'll be able to bring in machinery, aircraft and other items for repair and then export the refurbished items without undergoing complex trade procedures.

      "Compared with the traditional original equipment manufacturer model, the global repair service encouraged by the Chinese government has high value-added, nonpolluting and high-tech features. The introduction of this service will maximize companies' capacities, meet their actual needs in the market, and encourage Chinese enterprises to move to the high end of the value chain," said Susan Ju, a trade and customs specialist at PwC.

      Several pilot programs launched in recent years have sent clear signals to the market to encourage transformation. Enterprises also need to accelerate their transition in order to keep pace globally, create value and maintain a high level of trade compliance management, said Ju.

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