News

December 25, 2018

Waigaoqiao FTZ finance firm issues first guarantee for the customs duties

Shanghai Waigaoqiao Free Trade Zone Finance Co recently issued its first guarantee for the customs duties of 1 million yuan (US$145,009), thus becoming the first finance company that is involved in the pilot program of diversified tax guarantee in the Shanghai Customs area.

After learning that the country’s General Administration of Customs has carried out the pilot program of third-party companies’ tariff and tax guarantee, the Waigaoqiao Free Trade Zone Finance Co studied needs of other Waigaoqiao Group’s subsidiary companies and applied to the Shanghai Customs for the trial program of the group’s finance company credit guarantee model.

Later, the finance company strengthened the policy communication with the Shanghai Customs and enhanced the cooperation with other Waigaiqiao Group’s companies such as Shanghai Waigaoqiao International Trading Operation Center Co. The General Administration of Customs approved the Shanghai Waigaoqiao Free Trade Zone Finance Co to be involved in the customs’ tax guarantee pilot program.

In December, Shanghai Waigaoqiao International Trading Operation Center Co’s subsidiary Shanghai Waigaoqiao International Logistics Development Co officially submitted its application of guarantee for the customs duties operation to the Shanghai Waigaoqiao Free Trade Zone Finance Co, who in turn used only one working day to issue the customs guarantee for the customs duties document and expanded the guarantee to the trading operation center’s globally exported commodities.

Through the new model, the group’s subsidiaries could reduce the cost for issuing letters of guarantee by more than 40 percent. It is expected that the new model’s business scale will reach 1 to 2 billion yuan next year.