Institutional innovation in Yangpu helps build model FTZ

By Li Xiang / HICN / Updated: 17:28,26-November-2021

Since the central government released the master plan for the development of South China's Hainan Free Trade Port in June of 2020, Yangpu—as both a pilot and a model zone on the tropical island—has increased its efforts in the field of creating innovative rules and regulations which leverage the preferential policies of the free trade port to provide market players with high-quality services, save time and operating costs, and improve the area's business environment.

As a model zone for free trade in Hainan, Yangpu has taken the lead in implementing a number of preferential policies. LIU YANG / HINEWS

As of now, Yangpu has seen a total of 363 shipping enterprises set up in the area. With a deadweight of 4.8 million tons, 30 of the 162 ships to newly list Yangpu as their port of registry are international.

Cutting enterprises' refueling cost by a third, more than 18 million yuan (about $2.8 million) of bonded fuel has been used at the Yangpu Port with over 11 million yuan (about $1.7 million) in tariffs waived. Additionally, the port has also seen the opening up of seven new domestic and international shipping routes.

Ship registration & registry transfer

The master plan has granted Hainan a series of open policies on free transportation which are being leveraged to help develop a highly-efficient ship registration procedure for enterprises wanting to list their ships port of registry as Yangpu.

Yangpu authorities set up a program on July 28th, 2021 which—by reforming declarations and examination procedures—has streamlined the procedures for ship registration and registry transfer.

According to the General Manager of Hainan Yuhangshun Shipping, Zhao Ming, the previously existing procedures for ship registration took between five and seven working days to get approval for all six of the required certificates including the ship certificate, ownership certificate and vessel nationality certificate. However, on June 11th—his most recent trip to the Yangpu maritime services window for ship registration—all six certificates were approved in a single day. This not only saved his company time, it also saved them nearly 800,000 yuan (about $125,000) in operating expenses.

Just a few days ago, on November 9th, the Yangpu authorities took only a day and a half to approve 23 ship certificates for Hainan Chuangyuan Shipping. This saved Chuangyuan around 500,000 yuan (about $78,000) in operating expenses. “We'd estimated that it would take more than half a month to get all the certificates done, but Yangpu surprised us. I don't think speed like this is possible in any other place in China," said the company's general manager Chen Ping.

Bonded fuel refueling

One of the five special free trade port policies granted to Yangpu by the master plan is to allow transiting domestic ships which are simultaneously engaged in both domestic and foreign trade to refuel with bonded fuel. With the ability to cut shipping enterprises' operational expenses and attract them to open new shipping routes in Yangpu, the policy is the first of its kind in China and, as of now, still the only one of its kind throughout the country.

Following the release of the master plan, a notice went into detail regarding this policy. Officially coming into effect on April 8th of this year, the notice simplified the declaration and approval process for bonded fuel refueling at Yangpu Port in order to shorten the time required.



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