Three Ways To Increase Import &Nbsp; Processing Trade Policy Has Not Yet Been Tightened Up.

Lowering import tariffs, increasing interest input to import high-end technology equipment and facilitating imports are the three directions of package import promotion policy.

The "promotion port" has replaced the "pressure export" and has become the preferred path for China to reduce its surplus.

According to the foreign trade system, a package of "promotion" policy is expected to be introduced in the first half of this year. Guiding enterprises to import high-end equipment and technology will become the main direction of policy efforts.

In earlier policy discussions, the tax reduction of imported consumer goods represented by luxury goods was also regarded as one of the directions of "promoting exports".

The above said, at present, the tax reduction of such commodities is only a small part of promoting imports, not the main focus of the policy.

However, whether the policy ideas to encourage enterprises to import technological pformation will be realized through reducing import tariffs on related products, or by cash discount and other ways of cash, and have not yet been finalized.

In addition, the Ministry of Commerce introduced that the import tax rate of key supporting areas such as strategic emerging industries and traditional equipment manufacturing industries is expected to be reduced.

According to the central economic work conference and the national business conference, 2011

Three ways to increase imports

The foregoing members of the foreign trade system pointed out that from the current situation of policy discussion, reducing import tariffs, increasing interest input to high-end technology equipment imported by enterprises, and facilitating import facilitation are the three directions of package import promotion policy.

Import facilitation measures have been gradually fulfilled.

Starting in January 1st this year, the government relaxed control over foreign exchange earnings for export enterprises, allowing domestic export enterprises to store foreign exchange earnings abroad and no longer forced to convert them into Renminbi.

In October last year, Beijing, Guangdong, Jiangsu and Shandong had already begun to try this policy.

Zhou Shijian, vice president of the former Minmetals Association, said that although the main consideration of the above policy was to slow down the increase in foreign exchange reserves, it also facilitated the direct purchase of raw materials and equipment by foreign exchange companies overseas and reduced the cost of exchange.

He believes that the relaxation of foreign exchange control and the reduction of import tariffs are the two most important factors in a package of import promotion policies.

The foregoing foreign trade system said that earlier discussions on how to promote imports were controversial as to whether to reduce import tariffs represented by luxury goods or to focus more on supporting technological pformation of enterprises.

"At the moment, however, the tax cut on imports of terminal consumer goods is only a small part of promoting imports."

Officials with local business systems in charge of internal trade have revealed that the tax reduction on high-end imported goods has been investigated many times. Last year's commerce department's domestic trade seminar held an investigation team leader's estimate, because the price difference between domestic and overseas commodities was huge, and many domestic luxury consumption items were released in Hongkong.

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The source said that the idea of Hainan's tax-free island is worth learning. In fact, the decision makers are also exploring, attempting to dock with foreign countries, and give tax rebates for goods exported after domestic consumption.

Encouraging enterprises to complete technological upgrading by importing high-end equipment and technology is the main way to promote imports.

The above said that China's imports of goods are mainly raw materials, and the government hopes to import imports to high-end technology and equipment.

However, a comprehensive tax cut for high-end technology and equipment is not realistic.

The foregoing foreign trade system said that at present, China's import market has been very open, with an average import tariff of only 9.8%, which is the lowest level in all developing countries. "The room for continued tax reduction is very limited."

The policy of processing trade has not been tightened yet.

The "promotion port" has risen to the strategic level, and it has nothing to do with the background of the high surplus.

Chen Deming, Minister of Commerce, estimated at the National Conference on business affairs that the surplus in 2010 would be estimated to reach $190 billion, which is basically the same as the previous year's surplus, which is far higher than the government's initial expectations.

According to the statement on foreign trade in the central economic work conference and the setting of the National Conference on business affairs, changing the mode of foreign trade growth and promoting the balance between imports and exports is the two most important tasks of foreign trade this year.

Under the pressure of "surpluses", the market has also been triggered.

An official in charge of processing trade in Guangdong revealed that the wind of policy adjustment has not yet been received. He personally estimated that this year is unlikely to introduce a tightening trade policy for processing trade.

He said that the strength of the policy adjustment depends on the situation of export recovery. If exports grow too fast and exceed the expectations of the decision-making level, the tightening of the policy of processing trade may be difficult to avoid.

Otherwise, the Ministry of Commerce has introduced that the understanding of processing trade is basically unified at present. It is unlikely that the policy of heavy trade in processing trade will be reintroduced. "Even if some policies involve the adjustment of the prohibited catalogue of processing trade, it is also due to the pressure of energy saving and emission reduction."

It has been reported that steel, chemical and other commodities will be re included in the prohibited category of processing trade.

The Ministry of Commerce said that the current idea of processing trade adjustment is more to guide it from the southeast coast to the central and western regions, and to guide enterprises to expand from simple participation in processing links to more links, and extend the value chain of processing trade.