Zero Tariffs: Creating a New Engine for Foreign Trade Development - Observation on the 1st Anniversary of Shandong's Implementation of the Zero Tariff Policy for 100% Taxable Products of Least Developed Countries

Since December 1st last year, China has granted 100% tariff free treatment to all least developed countries that have established diplomatic relations with China, including 33 African countries. Among them, tariff quota products only reduce the tariff rate within the quota to zero, while the tariff rate outside the quota remains unchanged. This is an important measure of China's unilateral opening up and sharing development opportunities with the world, demonstrating its determination to promote high-level opening up to the outside world.

Since the implementation of this measure one year ago, the scope of the impact of the zero tariff policy has been expanding, and the ability of enterprises to apply the policy has been continuously improved, fully unleashing the policy dividends. Against the backdrop of sluggish global economic growth, what are the effectiveness of Shandong enterprises in utilizing the zero tariff policy? What measures have been taken to promote the implementation of zero tariff policies? What impact has the zero tariff policy had on stabilizing and improving the quality of Shandong's foreign trade?

Reduce workload and increase efficiency

Further enhance the competitiveness of enterprises

On December 8th, at the Huangdao Customs clearance hall under Qingdao Customs, 196 tons of sesame imported from Niger by Yihai Kerry (Qingdao) Flavored Oil Co., Ltd. were successfully cleared. The enterprise enjoyed zero tariff treatment with the preferential certificate of origin issued by Niger, saving 153000 yuan in import tariff costs.

Since the implementation of the zero tariff policy, the tariff rate for sesame imported by our company from the least developed countries in Africa, such as Niger, has been reduced from 10% to zero. Ding Kaiying, the head of the customs declaration department of the company, said that in the year since the implementation of the zero tariff policy, nearly 200 million yuan of sesame imported by the company from Africa have enjoyed the zero tariff policy, saving a total of 19.682 million yuan in tariff costs.

Shandong holds up half of the national tire manufacturing industry. During the research process, the reporter learned that the tire manufacturing industry is sensitive to the cost of raw materials. Natural rubber, as a key raw material, accounts for about 21% of production costs, and its price fluctuations directly affect the profitability of enterprises.

Since the beginning of this year, we have purchased natural rubber at a price about 15% higher than last year, which has put significant pressure on the company's cost control. "said Jiang Xiaojin, Business Manager of Pulin Chengshan (Shandong) Tire Co., Ltd. The zero tariff policy not only reduces production costs by 5% -10%, but also provides enterprises with more diverse natural rubber import options, optimizes supply chain layout, and enhances supply chain resilience. The company has enjoyed a tax reduction of 23.795 million yuan on natural rubber and other raw materials imported from the least developed countries.

According to statistics, from December last year to the end of November this year, 459 enterprises in Shandong Province have enjoyed a reduction of 820 million yuan in customs duties on imported goods such as sesame and natural rubber originating from the least developed countries, involving an import value of 8.65 billion yuan.

Strengthening institutional innovation

Promote the full release of policy dividends

Compared with other policies that promote foreign trade, the zero tariff policy has stronger professionalism. Enterprises not only need to obtain preferential certificates of origin, but also need to meet requirements such as direct transportation in order to enjoy tariff reductions. Currently, the zero tariff policy utilization rate for enterprises in the province is 94%, and some enterprises still have insufficient benefits, "said Zhang Li, Deputy Director of the Customs Tariff Department of Qingdao Customs.

Nongyi (Qingdao) Trading Co., Ltd. is a wholly foreign-owned trading enterprise located in Qingdao Free Trade Zone, engaged in the import and export of primary agricultural products and other commodities.

We previously imported sesame seeds originating from African countries such as Tanzania and Mozambique from third-party traders in Japan. Because about 20% of the sesame seeds had changed their container seal numbers during transit in Japan and could not provide proof of non processing, 13.993 million yuan of imported sesame seeds have not been eligible for zero tariff policy since the beginning of this year, "said Zeng Jin, the manager of the company's business department.

Qingdao Customs actively promotes the construction of "AI+tariffs", accurately locates enterprises with insufficient benefits through big data analysis, reminds relevant personnel of enterprises through SMS, and focuses on multiple key enterprises, including this enterprise, to carry out "one-on-one" policy promotion and origin technical guidance.

Under the guidance of the customs, our company has suspended the mode of purchasing from third-party traders since June this year and directly imported sesame from Africa, promoting the company's zero tariff policy to achieve a 100% utilization rate. "Zeng Jin introduced that since the beginning of this year, the company has enjoyed a tax reduction of 3.978 million yuan on sesame imports from Africa.

In order to ensure that enterprises fully enjoy benefits, Qingdao Customs has taken the initiative to simplify direct transportation documents based on the elevation standard economic and trade rules. For minor errors such as differences in HS codes between China and foreign countries and omissions of non critical information, enterprises are still allowed to enjoy zero tariffs, and a multidimensional communication mechanism has been established. Through the General Administration of Customs and the Chinese Embassy in relevant countries, it helps enterprises coordinate and solve problems that restrict the enjoyment of benefits, such as overdue feedback and verification results from foreign visa agencies.

With the help of Qingdao Customs, the company obtained a re examination of the certificate of origin from the local visa agency through the Chinese Embassy in Somalia, and successfully reduced the tax payment of 232000 yuan for three batches of sesame with a value of 2.126 million yuan that were blocked from enjoying benefits, "said Zhang Fang, Deputy General Manager of Qingdao Aucma Import and Export Co., Ltd.

Policy dividend release

Empowering characteristic industries to take on light responsibilities

Juancheng County, located in Heze, is an important gathering place for the hair product industry in China. After years of development, it has formed a characteristic industry with an annual output value of over 5 billion yuan and driven employment for more than 100000 people.

Human hair is the most important raw material for our hair product enterprise. Human hair imported from the least developed countries can be exempted from paying the 8% import tariff with a preferential certificate of origin, "said Dong Chunyin, General Manager of Changtai Hair Products Co., Ltd. in Juancheng County.

In order to implement the action of breaking through the rise of Heze and Luxi, Qingdao Customs and other departments have strengthened their linkage, promoted the "Spring Breeze Benefiting Enterprises" action, and focused on the practice of enjoying customs clearance benefits. A policy through train activity was carried out in Heze City, training nearly 200 enterprise management personnel, answering 30 questions about enjoying benefits, and promoting the utilization rate of zero tariff policy by Heze hair product enterprises to 99.9%. Since the beginning of this year, the customs have issued 520 million yuan to 68 hair product processing enterprises in Heze for imports from Myanmar and Bangladesh, enjoying a tax reduction of 41.56 million yuan, which has played a significant role in supporting characteristic industries.

Thanks to the zero tariff policy, we have significantly increased our import orders from Myanmar and Bangladesh this year, with a year-on-year growth of about 350%, "said Dong Chunyin.

The low-cost cross-border logistics environment created by the zero tariff policy has promoted hair product enterprises to further optimize their supply chains and achieve a significant increase in imports from the least developed countries. According to statistics, in the first 11 months of this year, Qingdao Customs supervised imports from the least developed countries, with a total value of 650 million yuan, a year-on-year increase of 2.6 times.

Qingdao Customs will continue to promote the construction of smart tariffs, promote enterprises to fully enjoy benefits, and explore innovative preferential models of 'pre determination of origin+declaration of origin' for international economic and trade rules with high standards, helping our province's enterprises optimize and improve their industrial and supply chain levels, and enhance new advantages of institutional openness, "said Zhang Li. (Zhao Guangying, Tao Dapeng, Tao Ning, Long Wei/Wen)