Shanghai Free Trade Zone is Good for Shipbuilding Industry

The establishment of Shanghai Free Trade Zone is a great news for the development of China's shipbuilding industry and shipping industry. The head of legal affairs of Hudong-Zhonghua Shipbuilding (Group) Co., Ltd. said in an interview with reporters.

The person in charge said that not from the trade zone may be liberalized in terms of financial and capital projects, major breakthroughs have been made in taxation and taxation reforms, regulatory and legal reforms, and international shipping center construction, which will surely give ships and shipping companies There are many advantages and conveniences in terms of exports, tariffs and trade.

From the current point of view, the establishment of the Shanghai Free Trade Zone has at least three advantages for the shipping companies. First, goods outside the Shanghai Free Trade Zone enter the free trade zone and can be considered as exports. Shipbuilding enterprises can enjoy export tax refund policies by signing ship export contracts with financial leasing companies registered in the free trade zone. Similarly, if the goods in the Shanghai Free Trade Zone are outside the Free Trade Zone, if they are used for re-exports, the relevant shipping companies may also enjoy preferential tariffs and VAT exemption and other benefits for the import link. This will promote the development of the foreign trade business of shipping companies. In addition, the establishment, change, extension, and contracting operations of foreign companies in the FTA will change from the examination and approval system to the filing system, which will greatly increase the enthusiasm of foreign investors in investing in the FTZ. It can be foreseen that many foreign shipping companies will surely emerge in the free trade zone, which will facilitate closer and faster communication between ship owners and ship owners and new customer base.

Second, China's shipbuilding industry is a highly export-oriented industry. Exchange rate risk has always been an important issue for boat companies. In particular, the continuous appreciation of the renminbi in recent years has brought great exchange rate risks to ship companies. The Shanghai Free Trade Zone will implement a relatively relaxed policy on foreign exchange control. Ship companies can use this platform to retain a certain amount of foreign exchange. When conducting import and export trade, they should try to reduce the transactions between RMB and foreign currencies and use the same as far as possible. This is a method for trading in and out of foreign currency to better avoid the settlement risk between RMB and foreign exchange.

Third, foreign exchange receipts and payments in the Shanghai Free Trade Zone will be more convenient. Shipbuilding companies can register service companies in the Free Trade Zone. This will allow them to enjoy extremely high levels in terms of warranty fees for export ships and payments under trade in services. Great convenience. This will help shipbuilding enterprises build an international service network and improve their international service capabilities.