Four measures to deepen trade system reform
(peopledaily.com.cn)
Updated: 2004-06-30 16:20

The Ministry of Commerce will take four measures to deepen the reform of foreign trade system and improve the export tax rebates regime on the basis of the revised Foreign Trade Law of China, said Yu Guangzhou, Vice Commerce Minister, on June 29 at a national tax and trade conference in Beijing.

Firstly, the management of the qualification of foreign trade business should be further reformed. Foreign trade operators only have to register with government departments concerned and are subject to a uniform access threshold. The purpose is to have foreign trade players enjoy independent operation and a fair playfield.

Secondly, necessary guiding will facilitate the development of foreign trade agent system. Effective laws and regulations governing foreign trade agent will be ready which defines well the relationship between the authorizing party and the agent in line with the principle of combining rights and obligations. The process of fostering a batch of specialized, service-oriented foreign trade operators will be sped up.

Thirdly, a credit and withdraw system will be in place. Efforts will be made on promoting the establishment of a foreign trade credit rating system. Credit data will be collected. A system will be set up to supervise credit status and punish dishonesties. A perfect annual inspection of foreign trade operation will put enterprises under control. Those which act against the law and regulations will face penalties, for example, limiting the access of their legal representatives to the trade. This is to guarantee a fair and free foreign trade market.

Fourthly, the system of business councils for imports and exports will be optimized. Rules governing such organizations will be formulated at a faster pace. Compulsory membership will be promoted gradually. Reform of personnel system will be conducted in those business councils. Permanent institutions of these councils will be upgraded.

Vice Minister Yu also highlighted the significance of the revised Foreign Trade Law which would take effect On July 1. The law, with the "promotion of foreign trade" as its gist, extends the foreign trade opportunities to individuals.

The law is also more service-oriented compared with the original version. An early warning and emergency system and public information system are available. Foreign trade remedies are well specified. Legal bailout will better protect intellectual property rights. New rules are designed to fight against monopoly and unfair competition. Business councils and industrial associations will play a bigger role. Measures to promote foreign trade, such as tax rebate for exports, are defined clearly in law.

The Ministry of Commerce recently has made public regulations on registration of foreign trade operators in line with the revised Foreign Trade Law. Trading companies will no longer have to get approval from the government to engage in foreign trade. A registration system replaces the approving process. Even individuals are entitled to build their foreign trade as long as they go through legal procedures.

According to the regulations, the registration will be ready within five working days so long as the enterprises fill in a simple form and show their business licenses to the registration institutions concerned. For foreign-funded enterprises, documents such as approval certificates are also necessary in the registration process.

How can the healthy development of foreign trade be secured as the foreign trade business is open to various players? Authoritative sources from the Ministry of Commerce explained the registration system would give the administrations concerned the access to actual real-time information on imports and exports, thus protecting the trade order and the trade interests of both enterprises and the country.

To minimize the possible difficulties to the government functioning due to foreign trade players failing to perform their obligations, the revised Foreign Trade Law coordinates the registration and the customs' declaration procedure to guarantee the government supervision on foreign trade order as efficiently as possible.

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