The Dream Factory of China

Total import and export volume in Qianhaiwan Free Trade Port Area reached 41.57 billion yuan (US$5.86 billion) in the first quarter of this year, up 77.5 percent from the same period last year, thanks to a series of innovative policies that the free trade area has adopted to facilitate foreign trade.

An initiative called “global center warehouse” made by the Qianhai Cooperation Zone Authority allows the storage of non-bonded and bonded goods in the same warehouse in the port area, providing convenience to trading companies.

YHGlobal（Yuehai） is among the first batch of enterprises that settled in the port area in 2012. According to Liu Yuli, Yuehai’s deputy general manager, the favorable policies have created a good business environment, helping firms like Yuehai improve efficiency and reduce costs.

“Thanks to the policies, our company\'s import and export business has maintained an annual growth rate of more than 100 percent for three consecutive years,” said Liu.

Figures from Shenzhen Customs showed that last year, the total import volume of Yuehai ranked No. 1 and No. 13 among all supply chain companies in Shenzhen and the country, respectively.

Qianhai has also set up an outbound airfreight center. Enterprises can complete the collection, distribution, build-up, transportation and security check of goods within a special restricted area. Air cargo can be freely circulated between the Qianhaiwan Free Trade Port Area and other aviation hubs such as the Hong Kong, Shenzhen and Guangzhou airports, saving time and money for import and export companies.

According to Tang Lingli, deputy general manager of MBE International Logistics Co. Ltd., the service of the airfreight center has expanded from the previous Pearl River Delta and the Greater Bay Area to cover other provinces such as Fujian, Hunan, Hubei, and Guangxi, as well as countries like Vietnam and Thailand.

The MCC (Multi-Country Consolidation) Qianhai model launched by customs allows various kinds of goods to be freely allocated and consolidated within the port, which greatly reduces warehouse costs for businesses.

Last year, a total of 8,861 containers of goods worth 5.8 billion yuan had been allocated and consolidated in the port area.

The introduction of multiple innovative polices, such as the general export model (9610 model), have also promoted the development of cross-border e-commerce industry in Qianhai.

The 9610 Model, rolled out June 14, 2019, allows customs clearance of imports and exports to be completed in the bonded area, greatly reducing processing time.

Under the 9610 Model, e-commerce companies can have goods shipped to Qianhai after receiving orders from overseas customers. While export paperwork and procedures are being processed in the Qianhaiwan port, exporters can make further logistical arrangements.

According to Liu Xiaoxin, vice director of Shekou Customs Office, the new measures have satisfied the diversified and fragmented export needs of businesses, providing them more flexible trading methods. The models served as green channels for SMEs to export commodities amid the COVID-19 pandemic, during the COVID-19 pandemic period.

In addition, Shekou Customs has also launched a number of innovative measures to promote the speed and efficiency of customs clearance in the port area, such as two-step customs declaration mode and cross-port allocation of barges.

Under the two-step declaration mode, trading companies are allowed to ship goods out of the bonded area after submitting just nine types of required materials; they then complete a full declaration within 14 days. The move gives companies enough time to double check their declaration materials and avoid making alterations to information afterwards.

This two-step declaration process has drastically shortened the customs clearance process by up to six hours on average. Importers can also save on daily operational costs of about 500 yuan per container imported through Shekou Port.

The customs authority has integrated the transportation advantages of Hong Kong International Airport and China-Europe freight trains in neighboring Dongguan City and the Yantian deep-water port to facilitate imports and exports.

The simplified customs declaration procedures and seamless export process save trade companies time and money, hence attracting an increasing number of businesses to import and export through Qianhai.