Shanghai Pilot Free Trade Zone Reform Analysis

The purpose of the Shanghai PFTZ is to provide an experimental field for policy and administrative reforms across multiple government agencies with the necessary political air coverage from the central government. It’s a big policy change for the Chinese government agencies to strike a balance between enforcement and trade facilitation.

Since the trade operations outside of the PFTZ will be quite different from those within the zone, the aim is to evaluate the PFTZ results and replicate the successful government mindset changes to the rest of China so that they can devise their own policy and administrative reforms.

Since the launch of the PFTZ, the first significant change in 2013 was the introduction of the negative list. It’s a major change for the Chinese government to switch from the complicated and lengthy approval process required for every business operation to a simple filing registration - with the exception of the 16 categories of sectors set out on the “negative list.”

Although there are several reform measures being designed and introduced, we will focus our PFTZ analysis on the following items, which have attracted the most interest from our customers:
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• Trade facilitation changes from Customs and China Inspection and Quarantine (CIQ)
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• Their impact on supply chain and compliance operations
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• Our CTM solution as the enabler to take advantage of the new reform measures