China News Service, April 10th, Li Xingqian, director of the Department of Foreign Trade of the Ministry of Commerce, said on the 10th that the current international epidemic is seriously impacting the world economy, and unstable and uncertain factors have increased significantly. Processing trade has been affected more quickly and directly by the epidemic, facing demand End and supply side "two-way squeeze".
The joint defense and control mechanism of the State Council held a press conference on the afternoon of the 10th. Ren Hongbin, assistant to the Minister of Commerce, introduced relevant measures to stabilize foreign trade and answered questions from reporters.
A reporter asked: This executive meeting of the State Council specializes in researching and supporting the development of processing trade. What kind of considerations did this cause and from what aspects?
In response, Li Xingqian said that processing trade is a new trade format formed during the process of China's opening to the outside world. Compared with general trade methods, processing trade has a characteristic of "two ends are outside", which is effective for an open economy and international industrial cooperation. form. A large number of industrial and consumer products in life are the products of global processing trade cooperation, which is not only related to people's livelihood, but also linked employment.
At present, the international epidemic has severely impacted the world economy, and there has been a marked increase in instability and uncertainties. Processing trade has been affected more quickly and directly by the epidemic, and is facing a "two-way squeeze" on the demand side and the supply side. Li Xingqian said, "On the one hand, export orders are declining. At present, almost all of our trading partners have epidemics, the demand in the international market has shrunk significantly, the production of major economies has been shut down, and export orders have been delayed or cancelled by enterprises. Orders decreased year-on-year. On the other hand, the global supply chain was blocked and imports of raw materials and spare parts were difficult. Our imports of processing trade are mainly intermediate goods, accounting for more than 80% of the imports of processing trade, mainly from neighboring countries in Asia. As a result of the epidemic, the supply capacity of spare parts in the relevant countries has decreased significantly, which has affected China's processing trade value-added and then exported. "
Li Xingqian said that in order to support the development of processing trade, the executive meeting of the State Council issued four important measures in time on April 7:
The first is to suspend the collection of domestic tax deferred interest, temporarily exempt from collection until the end of the year. When processing trade imports of bonded imported materials or finished products for domestic sales, in addition to paying the import link tax according to the regulations, tax deferred interest is also required, temporarily suspending the processing trade domestic deferred tax interest from April to the end of this year, which can reduce the enterprise ’s Domestic sales costs alleviate the company's financial pressure.
The second is to expand the trial of selective taxation of domestic sales, and expand the scope to all comprehensive bonded areas. Within the special customs supervision area, when processing trade enterprises apply for domestic sales, they must pay the import value-added tax and consumption tax in accordance with regulations. Import tariffs can be paid on the basis of imported materials or finished products. By using this policy, enterprises can reduce taxes voluntarily and reasonably. At present, this policy has been implemented in 40 special customs supervision areas of the country, of which 24 are comprehensive bonded areas. The pilot will be expanded to 113 integrated bonded areas in the country, and more enterprises will benefit from it.
The third is to optimize the structure of processing trade and speed up the revision of the catalogue of industries that encourage foreign investment. Foreign-funded enterprises are an important body of processing trade. At present, the National Development and Reform Commission and the Ministry of Commerce have started the revision of the catalog. Among them, the national catalog for encouraging foreign investment focuses on increasing the relevant items to promote the high-quality development of the manufacturing industry, optimizing the industrial structure of processing trade; Focus on enhancing the ability of the Midwest and Northeast regions to undertake industrial transfer, and optimize the regional structure of processing trade.
The fourth is to reduce the list of prohibited commodities and remove products that are no longer "two highs and one capital" from the catalog. The current list of prohibited commodities mainly includes products with high energy consumption, pollution and regulatory risks in the production process of petrochemicals, leather, steel, non-ferrous metals, wood pulp, etc. A total of 1862 10-digit customs commodity codes. On the premise of meeting the requirements of environmental protection supervision, we will reduce the types of products prohibited by processing trade and support enterprises to carry out processing trade.
Li Xingqian said that at present and for a period to come, processing trade is still an important trade method for China to deeply integrate into economic globalization and utilize two resources in both domestic and international markets. China has the most complete manufacturing industry system in the world and is fertile ground for the growth and development of the processing trade industry.
"Next, we will continue to make efforts from three levels to promote the high-quality development of processing trade. One is to enhance the technical content and added value of processing trade, extend the industrial chain, and transform from processing and assembly to technology and brand marketing to promote manufacturing. Integration with service trade development. The second is to support the central and western regions and the northeast region to undertake gradient transfer and achieve regional coordinated development. The third is to support processing trade enterprises to expand the domestic market, strengthen the connection between production, supply and marketing, and promote the coordinated development of domestic and foreign trade.