China's Processing Trade Policy Issues and Recommendations for Improvement
ZhangXuhong
Ⅰ. The existing processing trade policy the main problems
1. Different departments do not support the policy
Customs officers involved in the processing trade management, quality inspection, foreign exchange, taxation, foreign trade, and other departments, inter-departmental policy coherence for the healthy development of processing trade is essential. However, in practice, because of various departments were drawing up policies, the lack of formal cross-sectoral policy coordination mechanisms, therefore, policy inconsistencies between the departments, not supporting the case have occurred, seriously affected the supervision of processing trade sector's efficiency and enterprise The operation. For example, the tax rebate is not timely, and the processing trade “tour” of the world and reduces the operating efficiency of enterprises, improves the business operating costs and weakened the international competitiveness of enterprises. If the play to the functions of the existing free trade zone, can replace the interim role, offshore, "Day" will be significantly reduced. However, the customs and tax departments of the bonded area is not supporting the provisions of the Customs that the goods are regarded as exports to the bonded area, but the tax department that only the departure of goods can enjoy export tax rebates. The tax department of this provision, not only in the processing trade "day trips" to replace offshore "tour" has become impossible, but also greatly hindered the establishment of the bonded area of international procurement centers, the development of international logistics business. In fact, the tax department on the rebate, in the bonded area and export processing zones on the existence of differences between domestic goods entering the export processing zones can enjoy export tax rebates.
2. Contrary to some policies to encourage domestic processing trade
lengthened the direction of the industrial chain
The direction of the development of processing trade is three: the size, grade and raise the added value. Meet the first objective, the needs of our country’s comparative advantages and creates a suitable processing trade is developing the overall system environment. For the second objective, the need to attract a higher technological level of China enterprises engaged in processing trade, processing trade enterprises to encourage technology development and product upgrades. Increase the added value of processing trade enterprises need to encourage domestic industries longer linked respectively to the upstream parts and components industry upstream and downstream to the extension of the logistics industry, of which the most important thing is to increase its domestic procurement rate. Not only improve relations between the added value from the processing trade in China may be the actual number of economic benefits, but can also enable the processing trade from the "rootless industries" become rooted in China's industries, China's economic ties to the long-term development.
However, in recent years the processing trade policy adjustments in various departments are often managed from the point of view of convenience, more concerned about how to prevent the illegal use of the processing trade enterprises policy "smuggling" and "cheating the tax rebate," neglected to encourage enterprises to improve Domestic procurement rate, and some even on the policy objective is not conducive to encouraging domestic enterprises to improve the procurement rate. It must be beyond sector on the strong policy coordination mechanism. This is precisely China's policy-making mechanism of a major flaw.
3. Of processing trade in some of the policies and management tools
are not suited the needs of the development of processing trade
With the continuous deepening of economic globalization, the international industrial transfer to China on the speed and intensity are greatly enhanced, China's processing trade there have been some new changes, but the existing policy and management tools to deal with the new changes in processing trade to make appropriate The adjustment in the actual operation of the policy and management are not suited contradictions have become increasingly prominent.
For example,existing policies and regulations in China are not suited to establish procurement and distribution operations centre requirements. With the rapid development of processing trade, China formed a huge manufacturing capacity, as an international market, labor-intensive manufactures important export base, therefore, many large multinational companies in China plan to establish procurement distribution centers, while the development of the logistics business . However, because China's rebates policy in the bonded zone, bonded zone (warehouse) and other regulatory requirements can not meet the requirements of this has greatly hindered the processing trade to the extension of downstream industries.
Ⅱ. China's processing trade policy adjustments in the future
direction
Policy is a reflection of reality; we must advance with the times, to promote development. From the processing trade policy should be the development of China's processing trade of the status quo, on the basis of standardized management, processing trade and give full play to promote its technical upgrading, industrial upgrading and extending the potential of the industrial chain. To this end, the processing trade policy should focus on the following aspects of adjustments:
1. The processing trade exports of procurement implementation of
export tax rebate policy
In 2001, imports of processing trade amounted to 28.9 billion U.S. dollars, the total import volume of processing trade of 30.7 percent. By the existing domestic procurement processing the impact of the tax rebate policy, domestic value-added processing trade is lower than the feed rate of domestic value-added processing trade rate of 15 percent. If the processing trade exports of domestic procurement implement a tax rebate, will effectively promote processing trade enterprises to expand the use of domestic materials and parts, led the upper reaches of the domestic industry's exports, lengthening the processing trade of the domestic industry chain. But, with processing trade exports year on year growth, its domestic procurement value will also increase year by year. But needs to be emphasized is that the domestic processing trade value chain and the extension of regulatory costs and risks of an increase in direct proportion, so take measures to promote domestic processing trade value chain to extend the same time, it is necessary to further improve the efficiency of the regulatory approach.
2. Promote technological progress of processing trade
The more efficient management system .The existing manual, contract management approach, more suitable for the upstream and downstream business relations are stable, slow changes in the prices of traditional products processing trade management, but not adapting fast-changing international market prices, many businesses supporting the production of electronic products for the processing trade. Therefore, in order to adapt to the electronic and information products, such as high-tech products, "the procurement of globalization, electronic orders, production zero inventory" of the characteristics of the current reform of the contract, manual management methods, elimination of unnecessary part of the contract approval, to explore the electronic manual management methods, Improve regulatory efficiency.
3. To promote the processing trade to the lower reaches of the procurement, distribution extension of the field
The development of processing trade, China became the world's most important manufacturing bases in one. Processing trade exports of rapid development, for the development of international procurement, distribution operations and laid a solid foundation, but also extends the industrial chain to the lower reaches of the inherent requirements. Development of downstream processing trade procurement distribution business, will greatly improve the processing trade in the domestic value-added.
Free Trade Zone policy adjustments to the bonded area as the basis, the establishment of an international procurement distribution center. To this end, to domestic products to enter the Free Trade Zone, as do export, the tax department to the bonded area for export of goods for export tax rebates.
The development of international competitiveness to the international container port. China's Shanghai and Shenzhen ports and the hinterland with the rapid development of processing trade has become the forefront of the world's largest container ports, but because of an international transit implementation of the cumbersome import and export business management, management system lag far behind the development of international transit port Requirements. Therefore, in accordance with the development of international transit business requirements, we should reform the current port management system.
From: ZhangXuhong. China's Processing Trade Policy Issues and Recommendations for Improvement [J]. China Economy, 2008, 9, 23-27.