Xiamen reduces tariffs for overseas-processing pilots
Two enterprises in Xiamen, Fujian province were approved by the Central Administration of Customs of the PRC as overseas-processing pilots, with support from the Xiamen Municipal Bureau of Commerce and Xiamen Customs District.
Overseas processing can take advantage of human resources in surrounding countries and decrease operating costs, while the declining demographic dividend is leading to deficient manpower and slack production lines in China.
The overseas-processing of raw materials, machine accessories and wrapping materials should pay customs duties and added-valued tax, according to the commodity’s full value, under the existing customs supervision law. The two pilots will pay the taxes only according to its add-valued part, which can reduce the tariff by 40 percent.
The support measures for overseas-processing have caught the attention of many in the national media. CCTV Finance channel reported the economic reform policy on Oct 28. Xiamen is scheduled to enlarge the scale of the policy to give benefits to more enterprises.
Why Xiamen
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Xiamen is one of the most economically competitive cities in China and was one of the first Special Economic Zones on the Chinese mainland. As a vice-provincial city independently listed on the State development plan, it has provincial-level authority in economic administration and local legislative power. In 2010, the Xiamen SEZ was expanded to cover the entire municipality. Today, Xiamen is a modern and international port city.