The introduction of a stamp tax exemption, part of a pilot program targeting offshore trade in the China (Shanghai) Pilot Free Trade Zone and its Lin-gang Special Area, has led to impressive growth. During the first half of this year, Pudong New Area in Shanghai experienced a 101.4 percent jump in offshore trade volume, which accounted for more than 90 percent of the city's total.

Since the implementation of the new policy on April 1, the pilot regions for the offshore trade stamp tax incentives have seen the addition of 50 new offshore trading enterprises. This marks a significant step in China's exploration and implementation of offshore tax policies.

Offshore trade, or documentation processing trade, refers to a trade model in which the goods are transferred directly from the exporting country to the importing country without entering the border of a middle country where contracts, payments, logistics, insurances, financial arrangements, as well as other trading documentations are processed.

The introduction of the offshore trade stamp tax incentive policy not only aligns with the comprehensive reform initiatives in Pudong supporting the development of offshore economy, but also signifies a crucial institutional arrangement aimed at adhering to international high-standard economic and trade regulations.

The policy is expected to reduce operating costs for multinational corporations engaged in offshore trade, thereby bolstering the construction of Shanghai as an international trade center.

The implementation of the offshore trade stamp tax incentive policy has further invigorated the entrepreneurship of local enterprises and enhanced their international competitiveness in offshore trade development.