Shanghai has submitted to the central government the first draft of plan to establish a free trade port in the city, the Shanghai Securities News reported on Saturday.
The plan falls under the China (Shanghai) Pilot Free Trade Zone (FTZ) Scheme announced by the State Council, China's cabinet, in March 2017, and it incorporates the Yangshan and Pudong airport zones.
The free trade port will adopt information technology to strengthen its supervision systems, which will reduce risks and simplify goods entry management measures, the report said.
The port will establish and improve a system for risk prevention and control purposes while staying in line with international practices of financing, foreign exchange, investment and visa controls.
''The biggest breakthrough is (a series of) preferential measures for import and export tariffs so as to meet China's upgraded consumption demand and improve export competitiveness,'' one source told the Shanghai News Securities.
"For instance, industry sectors at the port, such as cosmetics and food, will be moved from a single model of imports and exports of finished products into a full supply chain covering raw materials, procurement, production and sales," the source said.
"The move will facilitate the improvement of domestic brands' competitiveness when 'going global.' At the same time, domestic enterprises will drive further transformation and upgrading, reduce costs and offer better services for consumers," the source said.
"Shanghai's free trade port is part of our national strategy. It also exemplifies innovation and breakthroughs in free trade zones," Sun Yuanxin, deputy director of the Research Institute for the Shanghai FTZ at the Shanghai University of Finance and Economics, was quoted as saying in the report.
"The free trade port is also an important test of the waters for the city as the municipal government deepens its reforms."
