FTZ introduces customs innovations

Innovative measures on customs auditing were launched recently in the Dalian section of the China (Liaoning) Pilot Free Trade Zone.

Under the measures, enterprises can declare the goods independently and organizations approved by customs conduct the audits. Customs does not interfere in nonviolation issues.

If any smuggling of goods is suspected, customs staff members conduct remote audio and video inspections via an online platform. On-site inspection by customs officers is conducted only when suspicion remains.

"It greatly reduces the cost of management, personnel and time," said Deng Guofeng, director of Jinshitan Customs in Dalian, Liaoning province. "Previously, it might cost thousands of yuan for the on-site audit."

Since it was opened on April 1, 2017, the pilot FTZ, comprised of Dalian, Shenyang and Yingkou sections, has made a number of innovations.

Statistics from the provincial commerce department show that by the end of last year, there were 47,000 enterprises in the Liaoning FTZ, including 46,000 domestic ones with combined registered capital of 643.8 billion yuan ($91.8 billion) and more than 1,300 enterprises with $3.6 billion of foreign capital.

Germany's Mahle Group, an automotive parts supplier, set up a subsidiary in Yingkou in 1999. It has recorded good growth for two decades, and its turnover reached 1.47 billion yuan last year.

Jorg Stratmann, CEO of the Mahle Group, said the company now regards China as its second home.

Some industry insiders even call Mahle a "Chinese company from Germany", he said, adding Mahle is still confident about the Chinese market.

Chen Kexian, deputy director of the administrative committee of the Liaoning FTZ, said the good business environment and efficient transportation system had allowed more foreign companies to settle in Yingkou.

Shenyang has also been making great strides to open up inland areas of Liaoning.

The Shenyang maintenance base of China Southern Airlines is expected to achieve an output value of 400 million yuan this year.

According to the China's Pilot Free Trade Zone Development Report, which was recently released by the Ministry of Commerce, by the end of last year, 113 of the 123 reform tasks assigned to the Liaoning FTZ in the national plan had been implemented.

The Liaoning FTZ has introduced a management and service model to assist comprehensive development of the manufacturing industry, by significantly reducing its costs, the report said.

Liu Aimin, director of the administrative committee of the Dalian section of the FTZ said the innovations had "greatly stimulated regional economic vitality and investment enthusiasm of both domestic and foreign investors, and provided valuable experience for the development of China's pilot free trade zone."