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Changning, SHCIQ Launch Trade Facilitation Pilot
01/09/2018 Shanghai Observer

Recently, Shanghai Entry-Exit Inspection and Quarantine Bureau (SHCIQ) and the Changning District Government have jointly signed the Cooperative Action Plan on Promoting Facilitation Pilot of Quality Co-governance. According to the agreement, on the basis of ensuring the effectiveness of law enforcement, risk control and bottom-line quality and safety, SHCIQ will for the first time implement the new differentiated, categorized management model on the five pilot enterprises registered in Changning, allowing the import of certain products upon examination or direct import so as to maximize the trade facilitation through collaborative innovation.


The first five pilot enterprises, namely, Shanghai NFW Union Textra Import & Export Co., Ltd. (NUTEX), Oravida (Shanghai) Food Co., Ltd., Theland Xinyun (Shanghai) E-commerce Co., Ltd., Guangpai Commerce (Shanghai) Co., Ltd., and New Balance Trading (China) Co., Ltd., cover food, textile and other sectors. At the signing ceremony, the above-mentioned persons in charge of the respective enterprise signed the quality and safety commitment.


Since 2012 when Changning District and Pudong New Area were awarded the Shanghai “Trade Facilitation Pilot Zone", the inspection and quarantine authorities and Changning District have renewed efforts to explore the upgrading of trade facilitation. In 2013, several one-stop service centers were founded one after another in Hongqiao, marking an unprecedented collaboration between the central district custom and the inspection and quarantine bureau. In 2015, the public inspection station of urban moral education was established as an innovation.


Xie Qiuhui, director of Shanghai Pujiang Entry-Exit Inspection and Quarantine Bureau, said in an interview that the inspection and regulation modes fall into five categories, including special regulation, close regulation, general regulation, verification regulation and credit regulation. After this round of signing ceremony, the five enterprises will be entitled to the preferential policies for certain products of the most lenient credit regulation and free clearance at the customs. The director also said that differentiated regulation is taking targeted measures in regulation, the higher level and credit the enterprise is, the faster its products will pass the customs.


Chen Zheng, General Manager of NUTEX, said that NUTEX took the initiative to be inspected on the imported milk powder with the pilot policy of “air inspection before custom discharge” in 2016. In other words, a section of products from the same batch by aircraft will be transported in advance for inspection and quarantine. If the section turns out to be qualified, the remaining cargo on the ship will pass the custom directly upon arrival at the harbor.


Chen Zheng said, the pilot policy of “air inspection before custom discharge” reinforced the market competitiveness of the enterprise by shortening the inspection time for the relevant products from originally 20 working days to 1 working day now. When referring to the higher-level facilitation in the pilot, Chen said that only companies that have worked with NUTEX for more than five years and have stable product quality, controllable risk and traceable enterprise information transparency will become suppliers of NUTEX. Meanwhile, with strengthened  internal supervision and procedure management, NUTEX vows to lose no time in recall the problem products once the risk arises.


Sheng Wenhao, Chairman of the Board of Theland Xinyun (Shanghai) E-commerce Co., Ltd., said that Theland (Shanghai) Diary Co., Ltd. used to conduct a cooperation with Alibaba, transporting the pasteurized milk with quality guarantee period of 15 days by aircraft directly to the tables of Chinese customers, yet the transportation procedure usually takes more than 8 days, or rather, over half of the 15-day quality guarantee period. Changning assisted the approach of enterprises and inspection and quarantine authorities and introduced CCIC traceability system. With shortened clearance time through targeted measures in regulation and the innovative policy of “discharge freely at the custom after having been inspected in the country of origin in advance”, it takes as fast as three days for fresh milk from New Zealandto reach Chinese customers.


“We food importers should work to gear global resources to the Chinese demand.” Sheng said, “The pledge of quality and safety of products we signed means that all the responsibilities, products, customers and social ones, and product wind direction should be taken mainly by enterprises themselves.” Chen said that, these responsibilities have long had to be taken by enterprises. And the pledge of quality and safety of products is a two-edged sword. If problems arise in management procedure, enterprises are the main entities facing the challenges, which well-run enterprises can face and take active responses, while those who have been availing the loopholes of policies will be phased out of the market gradually.


It is learned at the signing ceremony that so far, more than 7,000 foreign-funded enterprises, more than 3,000 trade enterprises, more than 700 representative offices of foreign-funded enterprises and 47 headquarters of transnational corporations have settled in Changning. From January to November of this year, the gross import and export volume has reached RMB59,390 million, and the actually utilized foreign capital has been US$790 million, or 46% up year on year, marking the fastest growth rate among central districts.


“With the constant growth of the import and export trade, Changning will continue to explore the innovative regulation mode “the first line opening, second line effective and efficient control” together with SHCIQ, working to realize the transformation of governments and regulatory departments from regulating the products to regulating enterprises,” said Yang Dongsheng, Director of the Changning District Commission of Commerce. Changning will also work with SHCIQ in line with the quality work pattern whereby the CPC committee takes the lead, the government takes the initiative, the departments join hands, the enterprises assume the main responsibilities and the whole society participate. All this contributes to the promotion of the construction of rule of law, internationalization, and convenient high-quality business environment in Changning.


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