The Premier of the State Council Li Keqiang chaired an executive meeting of the State Council on April 7 to launch a series of measures such as the establishment of a cross-border e-commerce comprehensive test zone, support for processing trade, and the online holding of the Canton Fair, actively responding to the impact of the epidemic, and striving to stabilize the basic foreign investment in foreign trade; Partial tax support policies for financial and microfinance companies.
At present, traditional foreign trade has been greatly affected by the epidemic. It is necessary to give full play to the unique advantages of cross-border e-commerce and help foreign trade to overcome difficulties with new formats.
Measures 1. On the basis of the establishment of 59 cross-border e-commerce comprehensive test areas, 46 new cross-border e-commerce comprehensive test areas have been established.
Measure 2. Promote effective practices that promote the development of cross-border e-commerce, and implement supporting policies such as exemption of value-added tax and consumption tax, and enterprise income tax verification collection for cross-border e-commerce retail export goods in the comprehensive test zone.
Measure 3. Study to include the cities where the qualified comprehensive pilot zone is located in the cross-border e-commerce retail import pilot scope, and support companies to jointly build and share overseas warehouses.
Coordinate the development of domestic and foreign trade, support processing trade enterprises to alleviate difficulties, and promote the stabilization of foreign investment and employment.
Measure 1. For domestic sales of bonded materials or finished products of processing trade, tax deferred interest is temporarily exempted before the end of the year.
Measure 2. Expand the pilot of processing trade enterprises to choose to pay tariffs on imported materials or finished products to all comprehensive bonded areas.
Measure 3. Expand the scope of industries that encourage foreign investment, and reduce the types of products prohibited by processing trade.
Facing the severe situation of global epidemic spread, what will the Canton Fair do?
Measures: The 127th Canton Fair was held online in the middle and late June. Invite domestic and foreign merchants to display products online, use advanced information technology, provide all-weather online promotion, supply and purchase docking, online negotiation and other services, create an online foreign trade platform of high-quality specialty products, so that Chinese and foreign merchants can place orders and do business without leaving the house .
Stabilize the international supply chain and resume production.
Measures: Improve the capacity of China-Europe trains and other freight channels, promote the improvement of cargo connection and other conditions, fully undertake the transfer of goods by sea and air, and support the stability of the international supply chain and the resumption of production.
Help small and micro enterprises overcome difficulties.
Measures: Inclusive financial services for small and micro enterprises, self-employed industrial and commercial households and farmers to help them overcome difficulties. Implement the linkage of fiscal and financial policies and extend some of the preferential tax policies that have expired until the end of 2023. Including: VAT exemption for interest income from loans of RMB 1 million and below issued by financial institutions to small and micro enterprises, self-employed industrial and commercial households, and farm households; interest income from loans of RMB 100,000 and below issued to farmers, and insurance for the breeding industry Business premium income is included in income tax payable income at 90%; interest income from loans from small-loan companies of RMB 100,000 and below is exempt from VAT and 90% is included in corporate income tax payable income. The loan loss reserve calculated at 1% of the year-end loan balance is allowed to be deducted before income tax.
Source: Textile and Garment Weekly