Opinions of the State Council on Improving Port Administration to Support Foreign Trade Development

· Document Number：No. 16 [2015] Issued by the State Council

· Area of Law： Foreign Economy and Trade

· Level of Authority： Regulatory Documents of the State Council

· Date issued：04-01-2015

· Effective Date：04-01-2015

· Status： Effective

· Issuing Authority： State Council

Opinions of the State Council on Improving Port Administration to Support Foreign Trade Development
(No. 16 [2015] Issued by the State Council)
The People's Governments of all provinces, autonomous regions and municipalities directly under the Central Government; the ministries and commissions under the State Council; and the institutions directly affiliated to the State Council:
Ports are doors of the State for opening to the outside world, bridges for foreign contact and economic and trade cooperation, and are important shields for national security. Over the past more than 30 years since the adoption of the policy of reform and opening up, ports have been in rapid development, and have generated extensive and profound influence on China's reform and opening up and modernization drive. So far, reform in China has entered a period of cracking hard-nut problems and a deepwater zone, the economy has ushered in a new normal, and opening to the outside world has entered a new phase. These have all raised new and higher requirements for port administration. To meet the requirement of the new situation, to promote stable growth, systemic transformation and upgrading of foreign trade, and to promote steady and healthy development of the economy, the following Opinions are hereby raised on improving port administration to support foreign trade development, in accordance with the relevant decisions and arrangements of the Central Committee of the Communist Party of China and the State Council:
I. Optimization of Port Services to Promote Stable Growth of Foreign Trade
1. Strengthening of efforts for streamlining of administration and devolution of power: On the existing basis, a new batch of items of administrative review and approval related to port customs clearance and import-export shall be canceled or decentralized to lower levels, and non-administrative license review and approval shall be totally canceled. Management systems intended to regulate administrative review and approval by the relevant departments of ports shall be established. Any establishment of new items of administrative review and approval shall be brought under strict control, and there may be no establishment of review and approval in violation of law or in a disguised form. The standards for review shall be specified. Commitment shall be made to the time limit for handling. There may be no promotion of the threshold for review and approval and extension of the time limit for review and approval in violation of law. Management systems in support of reform of the system of administrative review and approval shall be perfected and improved, with optimization of internal verification and approval procedures, with reduction of processes of review and verification, with realization of combination between devolution of power and control at the same time of improving service, realizing high efficiency and providing convenience for the people, and with strengthening of in-process and follow-up regulation. Research and exploration shall be conducted for realizing joint view and approval and associated review and approval. The list of powers and the list of responsibilities shall be formulated and made public as quickly as possible. The role of industrial associations of ports shall be brought under regulation and brought into play. Healthy development of intermediary service markets for port customs clearance shall be promoted.
2. Improvement of port customs clearance services: Systematization and timeliness of disclosure of information on law enforcement and administrative affairs of ports shall be strengthened, and the time limit for customs clearance operation shall be further regulated and made public. Innovation of modes of regulation of ports shall be promoted. By means of territorial jurisdiction, service in advance, follow-up verification, etc, non-essential law enforcement operations at the scenes of port clearance shall be moved ahead or behind, to reduce law enforcement at the scenes of customs clearance to the minimum limit. Taxonomic management shall be applied to enterprises. The scope of concentrated declaration and declaration in advance by enterprises shall be extended. Enterprises shall be supported in enlarging exports and increasing imports. Measures for inspection shall be improved, to make inspection more pertinent and more effective. Ratios of non-invasive and non-interfering examination and inspection shall be increased. For those found to be of no problems in inspection, they shall be exempt from payment of expenses for lifting, translocation, storage, etc, and the expenses therefor shall be assumable by the Central Government finance. Meanwhile, punishment for problematic enterprises shall be strengthened. For import of products produced or processed abroad by enterprises “going global” that meet the requirement of China, convenience in customs clearance shall be provided for it.
3. Check and regulation of fee charge: Administrative and institutional fee charges in export and export prescribed in violation of law shall be resolutely outlawed, and operation service fee charges in import and export shall be further regulated, to practically lessen the burden on foreign trade enterprises. For administrative and institutional fee charges, governmental funds and operation service fee charges to which government pricing or guiding pricing is applied in import and export that have been prescribed in accordance with law and in compliance with rules, they shall all be brought under management with catalogs and lists. For those thereof that are not covered by the relevant lists, they shall all be subject to investigation and punishment under charges of arbitrary fee charge. For items of fee charge with identical objects of fee charge, with similar ways of computation for fee charge and with a similar scope of application, they shall be incorporated, with appropriate reduction of rates on fee charge. The boundaries of the various types of e-commerce platforms shall be clearly defined. For the ones belonging to those funded by the government, they shall be open to society free of charge. For the ones belonging to those for marketization of value-added services, restrictions on requirement for qualification thereof shall be lifted, and diversified investment therein shall be encouraged. Fee charges in customs declaration, customs inspection, freight forwarding, shipping agency, port services, etc shall be checked and rectified. Compulsory service provision on the basis of administrative authorities and administrative power, and government-related intermediary services without the required qualification that only charge fees but do not provide services shall be resolutely outlawed. Coordination shall be extended to neighboring countries in releasing information on the items of and the standards and basis for the various types of fee charge in border entry-exit.
4. Promotion of paperless operation in customs clearance: Modes of transfer of documents accompanying customs declaration forms shall be optimized, to raise the efficiency of declaration by enterprises, and to save the cost of customs declaration. Promotion of the process of networking of electronic data on taxes and fees shall be accelerated, with cancellation of paper-based tax receipts, to realize paperlessness of tax receipts. Management over online verification shall be further improved and optimized, with gradual phaseout of hand checking of paper-based bills, and with acceleration of promotion of the process of paperlessness of regulatory credentials. Research shall be conducted on canceling paper-based outbound cargo customs declaration forms (exclusive for tax rebate on exports), and tax authorities can handle procedures for tax rebate on exports for enterprises by customs electronic data, to speed up tax rebate on exports for enterprises.
II. Strengthening of Construction of Ports to Promote Systemic Transformation and Upgrading of Foreign Trade
5. Strengthening of construction of infrastructure of ports: With sharing and joint use as an objective, resources of port regulation facilities and places of inspection shall be integrated. Standards for construction of port inspection facilities shall be set as soon as possible. Research shall be conducted on regulating management over funds for construction, transformation, operation, maintenance, etc of port inspection facilities, with further definition of sources of and channels for funding, and with strengthening of efforts for input of funds. Channels for application for subsidies of Central Government capital construction investment for construction and transformation of inspection facilities in national ports open to the outside world shall be brought under regulation. Multiple channels for funding shall be used to strengthen transformation of frontier ports and construction of inspection facilities, to improve conditions for discharge in frontier ports. Use of foreign aid funds shall be brought under overall planning, with priority given to making arrangement for aid for construction of port infrastructure and inspection facilities in ports in neighboring countries related to major international transportation corridors, to ensure compatibility of the discharge capacity of frontier ports in China with those of neighboring countries and also inter-connectivity and mutual access of cross-border infrastructure facilities.
6. Active promotion of construction of “single windows” for international trade: On the basis of electronic port public platforms, construction of “single windows” for international trade shall be promoted, and formation of mechanisms for interdepartmental joint construction, joint control and sharing of electronic ports shall be accelerated. Standardization of data on sharing of “single windows” shall be promoted, with improvement and extension of application functions of “single windows”, and with further optimization of the port regulation law enforcement process and customs clearance process. In accordance with the target of completing construction of “single windows” in coastal ports by the end of 2015 and in all ports nationwide by 2017, generalization of the experience in operating pilot projects of construction of “single windows” in China (Shanghai) Pilot Free Trade Zone shall be accelerated, and regions with mature conditions can make exploration for establishing “single windows” compatible with regional development strategies. Meanwhile, analysis and comprehensive study and judgment of risks shall be strengthened, and construction of logistics monitoring systems with monitoring commanding and with whole-process visualization shall be promoted. Electronization of border entry-exit documents shall be promoted, with generalization of application of passenger self-service clearance systems and systems of “one-stop” electronic inspection and release of motor vehicles.
7. Supporting development of new forms of trade business and platforms: Construction of cross-border e-commerce comprehensive pilot areas shall be supported, and cross-border e-commerce customs clearance management systems and quality and safety regulation systems shall be established and perfected, to provide easier, more convenient and swifter development environment for business startups by all and innovation by all. After experience is gained therein, the scope of comprehensive operation of pilot projects thereof shall be gradually enlarged. Guiding opinions on promoting healthy and rapid development of cross-border e-commerce shall be issued as soon as possible. Enterprises shall be supported in applying cross-border e-commerce to develop international markets. Businesses of cross-border e-commerce import and export shall be developed and enlarged in accordance with the principle of fair competition. The relevant policies shall be further improved, with innovation of modes of regulation, and with enlargement of the scope of operation of pilot projects of market procurement and trade, to prompt foreign trade comprehensive service enterprises to step up development, and to support enlargement of foreign trade export.
8. Promotion of innovation of systems of areas under special supervision by the Customs: Interactive development between ports and areas under special supervision by the Customs shall be strengthened. Duplication and generalization of innovative systems and measures that have become mature in operation of pilot projects in pilot free trade zones and areas under special supervision by the Customs shall be accelerated. Policies of taxation on areas under special supervision by the Customs shall be regulated and improved, to create a policy environment of fair competition for enterprises within the areas to participate in the domestic market. The experience of Suzhou and Chongqing in operating pilot projects of trade diversification shall be summed up. Research shall be conducted at appropriate times on enlargement of operation of pilot projects therein. Within the areas under special supervision by the Customs in China (Shanghai) Pilot Free Trade Zone, advance test and advance application of the policy of selective levy of tariffs on domestic sales shall be actively promoted, and research shall be conducted under overall planning on promoting operation of pilot projects of taxonomic regulation over the status of cargo. The radiating and leading role of areas under special supervision by the Customs shall be brought into full play, to promote regional industrial upgrading, to continue guiding the processing trade to undergo a transfer to regions in central and west China, and to encourage enterprises in the processing trade to concentrate in areas under special supervision by the Customs. Orderly development of producer services sectors related to the proceeding industry including sales, accounts settlement, logistics, test, maintenance and repair, and research and development shall be promoted.
9. Supporting local regions in economic development on the basis of ports: On the basis of the advantages of ports, areas under special supervision by the Customs, frontier economic cooperation areas, cross-border economic cooperation areas, modern logistics parks and other platforms and carriers shall be built, to develop poles of growth of the port economy integrating comprehensive processing, circulation of commerce and trade, modern logistics, cultural tourism, etc into a whole. Logistics cooperation and development of interaction between inland ports, coastal ports and frontier ports shall be promoted, to develop international logistics, and to establish modern logistics systems integrating storage, transportation and processing into a whole. In compliance with industrial policies of the State, ports for import of complete vehicles, pharmaceuticals, etc shall be additionally established. In ports with the necessary conditions, establishment of ports designated for inspection and quarantine shall be supported. The policies on duty-free shops shall be improved, and the spatial layout of duty-free shops in ports shall be optimized, to promote healthy development of duty-free businesses. Barter trade among inhabitants of border areas shall be regulated. Frontier regions shall be supported in developing characteristic and competitive industries. Mutual promotion and interaction between border trade and industries shall be boosted. The role of border trade as a corridor for energy and other resources shall continue to be brought into play. Border trade enterprises shall be supported in participating in trading in bulk resources and energy.
III. Deepening of Port Cooperation to Improve the Foreign Trade Development Environment
10. Innovation of major customs clearance cooperation mechanisms and models: Reform leading to integration of customs clearance nationwide shall be promoted under overall planning, to realize integrated operation of customs declaration, tax levy, inspection, release and customs clearance in the whole process nationwide, to promote integration of inspection and quarantine, and to realize general declaration, general inspection and general release. On the basis of advance test and advance application of integration of regional customs clearance in the Beijing-Tianjin-Hebei region, the Yangtze River Economic Zone and Guangdong region, the pace in building major port corridors among different administrative regions and among different sectors shall be quickened. Mechanisms for cooperation in convenient and swift customs clearance for China-Europe regular train freight services, etc shall be established and perfected, with innovation of multimodal transport regulation systems. Cooperation between Guangdong, Hong Kong and Macao in port customs clearance affairs shall be promoted, with strengthening of communication and coordination on major projects of cross-border port infrastructure construction, and with improvement of mechanisms for coordination between Guangdong and Hong Kong and between Guangdong and Macao in port liaison, to make mutual visits and economic and trade contacts between Guangdong, Hong Kong and Macao close. Zhuhai-Macao port inspection mechanisms and customs clearance models shall be innovated.
11. Strengthening of port law enforcement cooperation: Realization of information exchange, mutual recognition of regulation and mutual assistance in law enforcement shall be accelerated, and the scope of joint law enforcement and joint inspection shall be enlarged. The process of law enforcement in regulation shall be further optimized, with gradual shift from “serial law enforcement” onto “parallel law enforcement”. On the basis of full-scale application of the “triple single-time” system in customs inspection cooperation (single-time declaration, single-time inspection and single-time release), there shall be a gradual shift onto “single windows”, to realize sharing and joint use of information by the relevant departments of ports. Exploration shall be made for applying new models for customs clearance of means of transportation and cargo in border entry-exit, including “joint inspection and single-time release”, to reduce redundant inspection.
12. Promotion of inter-connectivity and mutual access with ports in surrounding countries: Bilateral and multilateral international port cooperation and exchange shall be actively promoted. The process of negotiations on accession to the Convention on Facilitation of International Maritime Traffic, etc shall be accelerated. Mechanisms for multinational cooperation in interregional port customs clearance and facilitation of transport on major international transport corridors shall be established. Border port cooperation affairs shall be included into agreements signed with neighboring countries including the memorandums of understanding on joint construction of the Silk Road Economic Zone and the 21st Century Maritime Silk Road. Cooperation shall be launched with neighboring countries on key ports. Mechanisms for port cooperation between China and neighboring countries shall be established and made complete, with strengthening of bilateral communication and cooperation in reciprocal port establishment, working systems, security protection, customs clearance facilitation, infrastructure construction, etc. Local governments in the vicinity of border ports and port inspection agencies shall be supported in launching exchange and cooperation with corresponding governments and agencies in neighboring countries, to coordinate settlement of problems existing in customs clearance. Some border ports with relatively favorable conditions shall be chosen to launch international cooperation in innovation of models of inspection and regulation. Research shall be conducted on applying such measures as “two inspections in one place”, “green passage” and “joint regulation”. Inland border ports shall be prompted to enhance their discharge capacity and raise their customs clearance efficiency.
13. Guarantee of port security and smoothness: Mechanisms for emergency joint actions in response to breaking events in ports and prearranged plans for settlement hereof shall be established and made complete, with definition of division of tasks, and with implementation of measures for security protection. Input in hardware for port inspection, security protection, etc shall be increased. The level of science and technology for inspection and regulation and the capacity of prevention and control of epidemic diseases and disease prevalence shall both be strengthened. All port inspection departments shall strengthen joint prevention and joint control; exchange relevant information and data in a timely manner; promote cooperation in preventing and controlling violence and terrorism, responding to breaking events, cracking down on smuggling, fighting tax refund fraud, investigating and dealing with evasion of inspection and quarantine, fighting human smuggling, and stopping border entry-exit of unsafe products and counterfeit and inferior quality goods, etc; promote the overall level of security protection, management and control; and guarantee safety, highly efficient and smooth operation of ports.
IV. Wider Opening of Ports to Promote the Level of Opening to the Outside World
14. Wider opening of ports in inland regions to the outside world: The layout of ports in inland regions as supporting points for the Silk Road Economic Zone and the 21st Century Maritime Silk Road shall be improved. Rational establishment of inspection places for directly handling procedures for border entry-exit of cargoes in major stations on international railway cargo transportation lines and in important inland river ports shall be supported. Inland airports shall be supported in additionally operating international passenger and cargo air transportation routes and flights. In regions with the necessary conditions, the scope of operation of pilot programs for policies on connecting transfer flights, port visa service and transit without visa for passengers shall be enlarged. River-sea, railway-waterway, land-air, etc multimodal transport shall be developed. Reloading and containerization of means of transport and cargo shall be permitted. Single-time declaration for multimodal transport and single-time inspection at the designated destination (or the place of border exit) shall be realized. Where the state of container sealing has not been changed at the place of reloading, the cargo concerned can be released directly. Formation of foreign economic and trade corridors running through east, central and west China and connecting the south to the north of China shall be sped up.
15. Quickening of the pace in opening ports in border areas: Key pilot development and open zones in border areas, border economic cooperation zones and cross-border economic cooperation zones shall be built into important platforms for cooperation between China and surrounding countries and regions. Key ports in border areas, border cities and economic cooperation zones shall be permitted to apply special approaches and policies in terms of mutual visits of personnel, processing, logistics, tourism, etc. Reciprocal establishment and wider opening of border ports shall be promoted in an orderly way. Construction of important open doors and cross-border passages on the Silk Road Economic Zone shall be accelerated. Border regions shall be supported in improving functions of ports, and in promoting urbanization of ports in border areas, to promote coordinated and sustainable development of urban areas, industries and the port economy there. Research shall be conducted on formulating measures for management over passages for inhabitants of border areas. Management of passages for inhabitants in border areas in Yunnan, Guangxi and other provinces and regions shall be brought under regulation. Innovation of the regulatory model of “one port with multiple passages” shall be supported.
16. Promotion of the level of opening of ports in coastal regions: Opening to the outside world of ports related to construction of the 21st Century Maritime Silk Road shall be promoted. Opening and construction of ports and airports in the vicinity of the pilot free trade zones in Shanghai, Guangdong, Tianjin, Fujian, etc shall be supported. Resources of coastal ports, wharves and shorelines open to the outside world shall be brought under overall planning and shall be developed in an orderly way, to realize rational distribution, differential development and mutual complementation of advantages of ports within the same economic zones. In accordance with the requirement for coordinated regional economic development of the Yangtze River Delta, the Pearl River Delta, the Bohai Sea Rim, the Beibu Gulf, etc, a number of pivotal ports for water transportation and air transportation and regional port clusters with relatively strong international competitiveness shall be formed in coastal regions.
V. Consolidation of the Basis for Ports to Strengthen the Capacity of Providing Service for Economic and Social Development
17. Innovation of mechanisms for management over opening of ports: Monitoring and analysis of port freight volume statistics, customs clearance efficiency and development status shall be strengthened; and medium- and long-term passenger and cargo transportation volumes shall be scientifically predicted, to provide data support for planning for opening of ports, optimal integration of ports, and investment in construction of ports, etc. Dynamic management of ports shall be applied. Measures for management over access to and exit from ports shall be formulated. Ports with no customs clearance business or with little business volume after being opened and ports that are not open on a long-term basis with the approval of the State shall be integrated or closed down. Level-to-level management of ports shall be promoted. In accordance with the functional definition and the passenger and cargo transportation volume of ports, exploration shall be made for applying the approach of three-level management over international pivotal ports, important national ports and regional general ports, with application of differential measures in terms of wider opening, input in construction, extension of functions, modes of customs clearance, human resources distribution, etc. Inland dry ports, monitoring points, motor vehicle inspection sites and other inspection places shall be subject to optimal integration and brought under regulated management.
18. Optimization of workflow of opening of ports: In-depth research shall be conducted on functional definition of ports under the new situation. The demand of economic and social development for the work of ports shall be scientifically demonstrated. The state of distribution of ports nationwide shall be accurately assessed. The national port development plan for the 13th Five-Year Plan period shall be formulated on the basis of research. For applications for opening of ports filed by the People's Governments of provinces, autonomous regions or municipalities directly under the Central Government in compliance with the national port development planning and the relevant requirement for opening of ports and in accordance with the relevant procedures, where they involve the organizational structure and manning quotas for port inspection, national capital construction investment subsidies, measures for protection of military installations, etc, they shall be determined by the national port administration authorities in consultation with the State Commission Office for Public Sector Reform, the relevant departments under the State Council and the Headquarters of the General Staff of the Chinese People's Liberation Army on a unified basis. Mechanisms for consultation on review and approval for opening of ports shall be made complete, with definition of the time limit for processing at all processes, and with strengthening of exchange of the relevant information, to raise the efficiency of review and approval for opening of ports. The standards, conditions and working rules for acceptance appraisal of opening of ports shall be improved. The measures for management over ports that are open temporarily shall be improved, and the duration of the period of temporary opening of ports hereof can be appropriately extended in accordance with the actual need.
19. Optimization of the distribution of human resources for port inspection: In accordance with the principle of “total quantity control and dynamic adjustment”, mechanisms for the organizational structure and manning quotas for inspection shall be made complete, and tapping of the potential, adjustment, optimization of the distribution of manning quotas within the systemic framework shall be promoted. The workflow of inspection shall be further optimized, with integration of internal organizations, and with rational establishment of job posts. The model of flat management of port inspection institutions shall be promoted, and efforts for extending preferential treatment to the frontline of law enforcement in terms of human resources supply shall be strengthened. By means of deepening of reform, streamlining of administration, devolution of power, improvement of management and innovation of regulation, the efficacy of the work of inspection institutions shall be further increased. Establishment of windows and rectification of the common practice of port administration shall be launched in an in-depth way. With priority given to setting up the image externally and strengthening the professional quality internally, the development of human resources shall be strengthened, in striving to develop civilized, impartial, incorruptible and highly qualified port inspection forces.
20. Improvement of the establishment of the system of laws on customs clearance: The regulation on the work of ports shall be enacted promptly. Timely revision and improvement of laws and regulations related to enforcement of law on ports shall be promoted. The regulations and rules on opening, construction, operation, etc of ports shall be established and made complete. Construction of
Establishment of enterprise credit systems shall be accelerated, and enterprise credit assessment files shall be created and made complete. Norms and standards governing service provision in law enforcement by inspection institutions shall be set and improved, to develop a stable, transparent and foreseeable law enforcement service and business operation environment.
VI. Strengthening of Organization and Leadership Over the Work of Ports
21. Strengthening of organization and leadership as well as work coordination: The role of the State Council Port Work Interdepartmental Joint Conference System shall be brought into full play, to coordinate settlement of major issues in port reform and development nationwide, to determine on the basis of research and promote application of major port reform schemes and policy measures, and to promote coordination and cooperation among various departments in customs clearance. The State Council Port Work Interdepartmental Joint Conference assumes on a unified basis the duty of guidance and comprehensive coordination over the business of construction of electronic ports nationwide and in all local regions. The national port administration authorities shall strengthen policy study and coordination, cooperate with other competent departments concerned in formulating working rules for the Joint Conference, improve working mechanisms and strengthen supervision over implementation thereof.
22. Strengthening of the duty of local governments: The People's Governments of all provinces, autonomous regions and municipalities directly under the Central Government shall formulate and implement the national port development planning and support measures, further improve their port work systems in connection with the local realities, and bring their port development under overall planning. Local People's Governments at the county level and higher shall further strengthen leadership over port work in the local regions, establish and perfect mechanisms for comprehensive coordination over port work, improve port infrastructure, strengthen comprehensive control over ports, promote interregional port cooperation and construction for realization of general customs clearance, do a good job of port service guarantee, and ensure safe and highly efficient operation of ports.
State Council
April 1, 2015