Circular of the General Office of Hunan Provincial People's Government on Issuing "Several Policy Measures to Promote Scale Stability and Structure Optimization of Foreign Trade in Hunan Province"

Hunan Government Doc. No. 46 [2023]

To the People's Governments of all cities, prefectures, counties and districts, and all departments, commissions and subordinate agencies under the Provincial Government:

"Several Policy Measures to Promote Scale Stability and Structure Optimization of Foreign Trade in Hunan Province" have been approved by the Provincial People’s Government and are hereby issued to you for rigorous implementation.

General Office of Hunan Provincial People’s Government

October 26, 2023

Several Policy Measures to Promote Scale Stability and Structure Optimization of Foreign Trade in Hunan Province

To implement the spirit of the "Opinions of the General Office of State Council on Promoting Scale Stability and Structure Optimization of Foreign Trade" (State Council Doc. No. 10 [2023]) and effectively advance the stability, quality improvement and high-quality development of the import and export of Hunan, the following measures are proposed to take:

I. Promote the Integrated Development of Industry and Trade

1.Accelerate the development of export-oriented industries. Leverage the foreign trade quality and efficiency demonstration project to enhance the internationalization of competitive industrial clusters such as engineering machinery and rail transit, improve the international marketing and import supply chain systems for electromechanical and high-tech product, and foster export superiority in electric passenger vehicles, solar cells and lithium batteries. Cultivate national foreign trade transformation and upgrade bases and provincial specialized foreign trade industrial clusters with high quality; encourage innovation in development models for light industries such as ceramics, luggage and kitchenware, as well as textile industries like apparel and footwear, while extending industrial chains to develop exports of smart, healthy, green and personalized mid-to-high-end products. Accelerate the development of high-quality agricultural international trade bases and key agricultural export enterprises, expand exports of green, organic and geographical indication, and full-process quality-controlled agricultural products, and steadily increase the export of vegetables, live pigs and chilled meat to Hong Kong and Macao. (within the responsibility of the Provincial Development and Reform Commission, Department of Science and Technology, Department of Industry and Information Technology, Department of Finance, Department of Agriculture and Rural Affairs, Department of Commerce and each municipal or prefectural government, based on their respective terms of reference) The followings shall be implemented by each municipal or prefectural government (not exhaustively listed)

2.Advance international brand development. Increase support for the development of domestic and international patents, international trademarks, globally recognized quality system certifications, and international marketing systems for export products and enterprises; encourage the development of industrial cluster brands and promote the formation of common brands for foreign trade with Hunan's regional characteristics. Implement the brand development project to cultivate internationally competitive high-value brands in emerging advantageous industries. Encourage traditional light industrial and textile enterprises in sectors such as apparel, footwear, toys and home appliances to expand the export of their proprietary brands. Cultivate leading brands in agricultural specialty industries, support overseas trademark registration and patent applications, and strengthen intellectual property protection. (within the responsibility of the Provincial Department of Industry and Information Technology, Department of Finance, Department of Agriculture and Rural Affairs, Department of Commerce and Administration for Market Regulation, based on their respective terms of reference)

II. Support International Market Expansion

3.Support enterprises in overseas market expansion. Following the "market-led, enterprise-driven and government-supported" principle, continuously optimize the "Key Overseas Exhibition Catalog" for Hunan and annually support over 200 enterprises (times) to participate in overseas professional exhibitions. Strengthen supply-procurement matching services by collaborating with overseas commercial offices of embassies and consulates as well as key domestic and international business associations, and organize over 100 enterprises annually for online and offline thematic supply-demand matchmaking. Enhance exit-entry service guarantees for enterprises participating in overseas exhibitions and investment promotions, as well as for foreign business personnel coming to Hunan for procurement and negotiation; support more enterprises in application for APEC Business Travel Cards. (within the responsibility of the Provincial Foreign Affairs Office, Department of Finance, Department of Commerce and Provincial Council for Promotion of International Trade, based on their respective terms of reference)

4.Successfully organize a series of domestic economic and trade activities. Successfully host international exhibitions such as the China-Africa Economic and Trade Expo, China International Rail Transit and Equipment Manufacturing Industry Expo, Hunan (International) General Aviation Industry Expo, Changsha International Construction Machinery Exhibition, China International Food and Catering Expo, Central China (Hunan) Agricultural Expo, Hunan (Liling) International Ceramic Industry Expo, and Yongzhou·Lanshan International Leather and Luggage Expo to promote "Hunan Product Going Global". Leverage major international exhibitions of national level such as the China International Import Expo, China Import and Export Fair (Canton Fair), China Hi-Tech Fair, China Processing Trade Products Expo, China-ASEAN Expo, and China International Supply Chain Expo, organizing over 2,000 enterprises for participation each year. (within the responsibility of the Provincial Department of Finance, Department of Agriculture and Rural Affairs, Department of Commerce and Council for Promotion of International Trade, based on their respective terms of reference)

III. Strengthen Open Platform Support

5.Promote innovative development of Hunan Pilot FTZ. Support the pilot implementation of international high-standard economic and trade rules and trade facilitation measures aligned with Hunan's development realities in Hunan Pilot FTZ. Promote the development of remanufactured engineering machinery and equipment export and study the construction of a remanufacturing industrial park for engineering machinery and equipment. Encourage enterprises in the FTZ to engage in cross-border financial leasing of high-end equipment. Strengthen cooperation with Hainan Free Trade Port. Establish a China-Africa Standard Cooperation and Innovation Center to provide enterprises exporting products to African countries with one-stop services including "certification, testing and expedited customs clearance". Promote coordinated development among ports of Yangtze River Economic Belt and explore new models for waterway logistics supervision. (within the responsibility of the Provincial Department of Industry and Information Technology, Department of Finance, Department of Transport, Department of Commerce and Provincial Local Financial Regulatory Bureau, based on their respective terms of reference)

6.Establish the pilot zone for in-depth China-Africa economic and trade cooperation. Establish centers for African non-resource product distribution and trading, China-Africa cross-border e-Commerce cooperation, China-Africa industrial chain cultivation, China-Africa financial cooperation, logistics hubs for central and western China's trade with Africa, and China-Africa economic and trade exchange promotion; build them as pilot zones and models for the "Nine Programs" of China-Africa cooperation. [within the responsibility of the Provincial Development and Reform Commission, Department of Agriculture and Rural Affairs, Department of Commerce, Provincial Administration for Market Regulation, Provincial Local Financial Regulatory Bureau, People's Bank of China Hunan Branch (State Administration of Foreign Exchange Hunan Branch) and Changsha Customs, based on their respective terms of reference]

7.Leverage the functions of special customs supervision zones. Strengthen policy support and performance incentives for special customs supervision zones, accelerate the bringing and clustering of entity-based, technology-driven and business model innovation enterprises, facilitate foreign trade enterprises in leveraging policy advantages to expand import/export and enhance trade facilitation, and guide differentiated development of customs zones based on local conditions. Leverage the advantages and functions of special customs supervision zones to actively promote innovation in cross-border e-Commerce, bonded research and development, bonded maintenance and bonded re-manufacturing. (within the responsibility of the Provincial Development and Reform Commission, Department of Industry and Information Technology, Department of Finance, Department of Commerce, Administration for Market Regulation, Changsha Customs and Provincial Taxation Bureau, based on their respective terms of reference)

IV. Promote Import Expansion and Strengthen the Foundation

8.Optimize the structure of imported commodities. Support eligible enterprises in benefiting from import tax incentives and encourage them to utilize the national "Catalogue of Technologies and Products for Import Encouragement" to import advanced equipment and key components, thereby expanding the import of electromechanical and high-tech products. Leverage the "Catalog of Commodities for Import Encouragement in Hunan Province" to incentivize enterprises to rationally increase consumer goods import and expand bulk commodity import. Leverage the China-Africa Economic and Trade Expo and the Pilot Zone for Deepening China-Africa Economic and Trade Cooperation to facilitate market access for premium African products. (within the responsibility of the Provincial Department of Industry and Information Technology, Department of Finance, Department of Commerce and Changsha Customs, based on their respective terms of reference)

9.Strengthen import platform support. Establish and effectively utilize national-level import trade promotion and innovation demonstration zones to expand the import scale of high-quality product. Leverage the "One Corridor and Two Parks" platform to increase the import of agricultural and mineral products from ASEAN. Leverage the role of designated entry ports and supervision facilities for chilled aquatic products, logs, meat, etc., further improve relevant supporting facilities, and guide more import enterprises for agglomeration. Support qualified regions to apply for functions of new designated inbound supervision facilities. Increase efforts to introduce and develop supply chain platform enterprises, reducing import financing costs for businesses. (within the responsibility of the Provincial Department of Commerce, Provincial Forestry Bureau, Provincial Drug Administration and Changsha Customs, based on their respective terms of reference)

V. Promote Synergistic Development of Business Format

10.Stabilize and Upgrade Processing Trade. Fully leverage the role of national key hubs for gradient transfer of processing trade such as Hengyang, Yueyang, Changde, Yiyang, Chenzhou, Yongzhou and Loudi to actively attract processing trade enterprise projects. Advance the construction of Changsha's national processing trade industrial park and encourage more cities/counties to establish provincial parks. Support innovation in processing trade enterprises and accelerate the development of processing trade industrial clusters. Support enterprises in adopting group processing trade supervision models to develop influential headquarters enterprises in processing trade. (within the responsibility of the Provincial Development Reform Commission, Provincial Department of Industry and Information Technology, Department of Finance, Department of Commerce and Changsha Customs, based on their respective terms of reference)

11.Promote Innovative Development of Foreign Trade Entities. Promote the development of innovation "enclaves", establish sound benefit-sharing and evaluation mechanisms, and support coordinated development among more cities, counties and industrial parks. Utilize various parks, platforms and pilot zones to accelerate inbound investment of export-oriented enterprises, driving more local industries for import/export operations through policy facilitation. Certify a group of provincial comprehensive foreign trade service enterprises and support industrial park foreign trade service centers in providing specialized services for local industrial opening and development. [within the responsibility of the Provincial Department of Finance, Department of Commerce, Provincial Local Financial Regulatory Bureau, People's Bank of China Hunan Branch (State Administration of Foreign Exchange Hunan Branch), Changsha Customs and Provincial Taxation Bureau, based on their respective terms of reference]

12.Accelerate the development of cross-border e-Commerce. Accelerate the development of exemplary local enterprises for cross-border e-Commerce. Promote the integrated development of cross-border e-Commerce and industrial clusters, create cross-border e-Commerce agglomeration zones, and support the construction of cross-border e-Commerce incubation centers, overseas warehouses and consolidation warehouses. Leverage the innovative and demonstrative leadership of cross-border e-Commerce comprehensive pilot zones in Changsha, Hengyang, Zhuzhou, Xiangtan, Yueyang and Chenzhou. Strengthen services for cross-border e-Commerce enterprise, continuously optimize customs clearance, enhance foreign exchange convenience and implement tax policies for cross-border e-Commerce. [within the responsibility of the Provincial Department of Finance, Department of Commerce, Provincial Administration for Market Regulation, People’s Bank of China Hunan Branch (State Administration of Foreign Exchange Hunan Branch), Changsha Customs and Provincial Taxation Bureau, based on their respective terms of reference]

13.Deepen the pilot program for market procurement trade methods. Establish a centralized procurement database for Hunan's market procurement products, strengthen pilot collaborations with all cities and counties, and drive the export of more Hunan specialty products and industries. Establish industrial parks for the "market procurement + cross-border e-Commerce" new model, and enhance the integrated development of new business formats and models. Deeply explore supply and demand resources to expand the pilot business of exporting prepackaged food. Promote risk compensation models and streamline forex settlement and tax procedures for pilot enterprises. [within the responsibility of the Provincial Department of Commerce, Provincial Administration for Market Regulation, People's Bank of China Hunan Branch (State Administration of Foreign Exchange Hunan Branch) and Provincial Tax Bureau, based on their respective terms of reference]

VI. Accelerate Domestic-Foreign Synergistic Development

14.Promote effective interaction between trade and two-way investment. Study the establishment of a provincial industrial chain investment fund to attract targeted investments around local advantageous industrial chains. Continuously advance the return of Hunan entrepreneurs and rural entrepreneurship, successfully host brand investment promotion events such as "Hunan-Yangtze River Delta Economic and Trade Cooperation Week", "Hunan- Guangdong-Hong Kong-Macao GBA Investment and Trade Week", and "Global Hunan Entrepreneurs Conference", establish the "China-Europe (Hunan) International Cooperation Demonstration Zone", and guide cities/prefectures and industrial parks for targeted industrial chain investment promotion based on their industrial foundations and the needs of leading enterprises, attracting leading foreign trade enterprises to establish their operations in Hunan. Strengthen investment cooperation with Africa, ASEAN and the like regions in agriculture, mining and manufacturing, and support the establishment of overseas production bases and marketing networks to promote clustered global expansion of industrial chains. Encourage development zones within the province and key enterprises "going global" to jointly build economic and trade cooperation parks with countries participating in the Belt and Road Initiative to expand economic and trade exchanges and trade scales with key countries. Explore facilitative policies linking investment and trade to form a more resilient supply chain system. [within the responsibility of the Provincial Federation of Industry and Commerce, Development and Reform Commission, Department of Industry and Information Technology, Department of Finance, Department of Agriculture and Rural Affairs, Department of Commerce, Provincial Local Financial Regulatory Bureau, People's Bank of China Hunan Branch (State Administration of Foreign Exchange Hunan Branch) and Changsha Customs, based on their respective terms of reference]

15.Accelerate the Integration of Domestic and Foreign Trade. Promote information sharing, mutual recognition of supervision and law enforcement coordination between domestic and foreign trade regulatory authorities. Deepen innovation in the domestic and foreign trade regulatory mechanisms of comprehensive bonded zones. Build an integrated domestic and foreign trade comprehensive service platform, providing targeted support to develop key enterprises engaged in integrated domestic and foreign trade businesses. Promote pilot trade adjustment assistance programs in the FTZ, support domestic and foreign trade enterprises in technological upgrades, equipment modernization, product R&D, certification, market expansion, and personnel training during trade adjustment and transformational development. Research and organize specialized exhibitions for integrated domestic-foreign trade and promotional activities for export-to-domestic-sale products to accelerate the formation of service districts aggregating high-quality goods for both markets. Support international logistics enterprises in conducting domestic cargo co-loading and mixed-loading operations. Promote innovation in domestic trade credit insurance services and financing models. For enterprises operating on both international and domestic markets, actively utilize coordinated support from export credit insurance and domestic trade credit insurance, and reasonably increase financing efforts. Strive to pilot a unified bank account system for local and foreign currencies. [within the responsibility of the Provincial Department of Industry and Information Technology, Department of Transportation, Department of Commerce, Administration for Market Regulation, Provincial Local Financial Regulatory Bureau, People's Bank of China Hunan Branch (State Administration of Foreign Exchange Hunan Branch), Changsha Customs and National Financial Regulatory Administration Hunan Office, based on their respective terms of reference]

VII. Enhance Trade Facilitation

16.Enhance departmental service efficiency. Implement a whitelist mechanism for key foreign trade enterprises and strengthen factor supply services. Guide enterprises to fully utilize the rules of free trade agreements such as RCEP, achieving comprehensive policy training coverage for cities, industrial parks and foreign trade enterprises. Enhance the functionality and effectiveness of the public service platform of Hunan for foreign trade. Accelerate the informatization development of "Single Window" system to develop local characteristic application projects. Promote the "multi-certificate integration" measures taken by Customs, strengthen cross-customs and port cooperation, and take combined measures such as early declarations, faster customs clearance of railway and off-yard inspections to reduce the time required for processing. Explore the formulation of a positive list for cross-border scientific research materials, implement the management model of prior commitment declaration by units and customs-facilitated clearance for listed materials (excluding those under special entry-exit item control). Accelerate the registration and quarantine approval of agribusiness and promote the establishment of green channels for exporting fresh and perishable products. Accelerate cultivation of 120 AEO-certified enterprises by Customs by 2024. Continuously optimize export tax rebate (exemption) services and mitigate related risks, further expedite the processing of export tax rebates (exemptions), reduce the average processing time for normal export tax rebates province-wide to within 4 working days, maintain it within 3 working days for Categories I and II enterprises, and expand the scope of "immediate declaration and handling". Promote CNY settlement for trade and investment with neighboring countries (regions) and within the RCEP framework, and orderly expand higher-level pilot programs for facilitative CNY settlement. [within the responsibility of the Provincial Department of Commerce, People's Bank of China Hunan Branch (State Administration of Foreign Exchange Hunan Branch), Changsha Customs and Provincial Taxation Bureau based on their respective terms of reference]

17.Strengthen support to financing and credit insurance. Encourage government-backed financing guarantee institutions to provide credit enhancement support to eligible SMEs, offering unsecured export order financing and export credit insurance financing services to SMEs in foreign trade. Encourage the Hunan Branch of China Export-Import Bank to increase financial support for key product import and export, cross-border e-Commerce, overseas warehouse and any other new foreign trade model, with foreign trade loan newly added in 2023 not less than CNY 10 billion and the year-end foreign trade loan balance up to CNY 81 billion. Expand the scale and coverage of export credit insurance, encourage SINOSURE Hunan Branch to support foreign trade export and investment of Hunan no less than $8 billion in 2023, raise the maximum compensation for SMEs under the single-window governmental comprehensive insurance platform from $100,000 to $150,000, ensure policy-financing credit enhanced coverage of no less than $5.6 billion, and improve the Claim Period for new cases by 10% year-on-year. Promote the exchange rate risk hedging compensation model, implementing "two exemptions, one subsidy and one preferential" for small, medium and micro foreign trade enterprises purchasing exchange-rate hedging products. Strengthen linkage between financial institutions and technologically advanced and globally competitive enterprises to increase the proportion of direct financing. Steadily expand the coverage of trade foreign exchange facilitation policies for high-quality enterprises, enhance the quality and scale of pilot programs, broaden business and participant scopes, and include more high-quality SMEs in the pilot. [within the responsibility of the Provincial Department of Commerce, People's Bank of China Hunan Branch (State Administration of Foreign Exchange Hunan Branch), National Financial Regulatory Administration Hunan Office, Export-Import Bank of China Hunan Branch, Sinosure Hunan Branch and each commercial bank in the Province, based on their respective terms of reference]

18.Accelerate the development of trade corridor. Enhance the local cargo consolidation capacity of the China-Europe Freight Train (Changsha), accelerate the expansion of Hunan-Guangdong-Africa international corridor, and connect Guangdong-Hong Kong rapid customs clearance system through rail-sea intermodal and "cross-border smart electronic lock" road transport. Accelerate the construction of Huaihua International Land Port and expand westward international logistics channels such as China-Laos, China-Vietnam and Beibu Gulf rail-sea intermodal transport. Promote the development of direct overseas procurement operations and establish a domestic and overseas LCL center distribution system with a "center+ satellite warehouse" model. Achieve international passenger and cargo flight coverage for Changsha (coordinated with Zhangjiajie) Airport across ASEAN and RCEP regions, establish a four-hour aviation economic circle centered on Changsha, and stabilize passenger and cargo routes to Africa. Support for Chenglingji Port to establish a direct waterway route and a transoceanic relay route. (within the responsibility of the Provincial Development Reform Commission, Department of Transport, Department of Commerce and Changsha Customs, based on their respective terms of reference)

All cities, prefectures, departments and units shall be held responsible for their implementation, increase financial support, strengthen coordination among provinces, cities or prefectures and counties or district, and work together to stabilize and optimize the structure of foreign trade. The Provincial Department of Commerce, in collaboration with competent authorities, must enhance coordination, policy guidance and tracking evaluations, summarize replicable, scalable and referable practices and experiences to drive high-quality development of the province-wide foreign trade.

This Policy Measure shall take effect from the date of issuance till December 31, 2024.