Shanghai FTZ supports offshore transit trade
The China (Shanghai) Pilot Free Trade Zone has implemented seven new measures to promote offshore transit trade in the zone, according to a recent announcement made by the Shanghai Pudong New Area government.
The first new measure states that companies capable of engaging in offshore transit trade can receive tax incentives and apply to be registered as technologically advanced companies.
The second measure encourages financial institutes to provide efficient international financial services for real offshore transit trade. The Shanghai office of the State Administration of Foreign Exchange will help these financial institutes provide balanced payment and exchange services to meet this end.
Third, the Shanghai FTZ will help foreign-invested trading companies capable of engaging in offshore transit trade to apply for recognition as the regional headquarters of a transnational company.
Fourth, the Shanghai FTZ will provide more attractive benefits for senior managers and skilled workers at companies capable of offshore transit trade, including better educational services for children, better health insurance, and better accommodation.
Fifth, more financial support will be offered to companies capable of offshore transit trade, and well-performing offshore-transit trading companies will be rewarded.
Sixth, the Shanghai FTZ will explore more cross-border financial service models, and financial institutions will be encouraged to provide more efficient and convenient transnational financial services for offshore-transit trading companies.
Last but not least, the Shanghai FTZ will provide counseling, training, legal aid, and other services for offshore-transit trading companies.
The Shanghai FTZ also held a conference on promoting offshore transit trade in Pudong New Area on Oct 31.
At the conference, Hang Yingwei, deputy Party secretary general of Shanghai, unveiled the name plaque of the Shanghai FTZ Offshore Transit Trade Industry Service Center, while Wen Zuliang, Party secretary of Pudong New Area, unveiled the name plaque of the Pioneering Offshore Transit Trade Demonstration Area.
During the event, 10 firms stated their intention to expand their involvement in offshore transit trade and signed agreements with commercial banks.