Fee Reductions to Aid China's Port Procedures, China Analyst Says

China’s recent decision to reduce certain customs fees will have a substantial impact on making procedures easier at the country's various ports, according to Alexander Chipman Koty, a China-based associate managing editor for business intelligence reports at Dezan Shira & Associates. The changes -- part of a larger decision made by China’s State Council on April 9 to lower taxes on certain imported goods (see 1904100013) -- underpin an “ambitious program to improve its business environment,” Koty said in an email. Most of the changes involve “eliminating or consolidating different fees and forms,” he said, adding that “together … these small reforms have had the cumulative effect of making day-to-day business easier and more straight forward.” But Koty said they also may help China reach its larger goal: expanding its ports, the Shanghai Free Trade Zone and the Hainan Free Trade Zone. “[The changes] mark another small step in making China’s business environment easier to deal with -- including its ports and customs procedures -- which is significant for importers and exporters,” Koty said.

Although China has not yet announced when the fee reductions at ports will take effect, Koty said they will likely come “within the next three months.” Koty also said that the cuts should apply to all ports in China, but “the central government has sometimes had difficulties with local governments effectively implementing reforms, so the progress may be uneven in different regions.”