Adhering to the management philosophy of “encouraging innovation, tolerance and prudence”, Hangzhou has vigorously promoted the innovative development of new offshore service trade. In view of the new offshore international trade mode in which enterprises complete product design in China, carry out sales through international agents, and finally entrust overseas companies to manufacture and deliver orders, guide banks to support enterprises to collect foreign exchange after transactions and be responsible for the settlement of all participants in the industrial chain. A few days ago, this model was selected as the “Best Practice Case” of the pilot project of comprehensively deepening the innovation and development of service trade compiled by the Office of the Inter-Ministerial Joint Conference on the Development of Service Trade in the State Council.
In view of the fact that the certificate of title of goods generated in new international trade is not original, and the parties in the contract are inconsistent with those in the invoice, which leads to the inability of new trading enterprises to settle foreign exchange smoothly, the Municipal Bureau of Commerce and Hangzhou Xiaoshan Sub-branch of the People’s Bank of China trace the trade process, analyze the trade chain, sort out the special documents that cannot be settled by conventional foreign exchange settlement, and formulate a special document processing plan to provide support for enterprises to collect foreign exchange and settle overseas. The problem of fund settlement in the new offshore trade mode of enterprises has been solved, and in 2020, the foreign exchange collection and payment under the global procurement mode has been successfully handled, amounting to more than 50 million US dollars. With the support of policies, the business scale of the enterprise expanded, and the operating income in the second year increased by 29.65% year-on-year, and the net profit increased by 131.69% year-on-year.
On the other hand, when financial institutions in Hangzhou handle the settlement of new offshore service trade funds for the applicant enterprises, they put forward the operation mechanism of strengthening the authenticity audit from three aspects: pre-entry review, single business review and post-business monitoring, and supplemented the reasonable explanation for the business requirements of non-first-collection and then-payment. At the same time, strengthen the monitoring of foreign exchange collection and payment of enterprises, and keep the bottom line of illegal arbitrage risk.
At present, three modes of new offshore international trade, namely, offshore resale, global procurement and entrusted overseas processing, have landed in 16 enterprises in Hangzhou. On the basis of taking the lead in completing the first foreign exchange payment business under new offshore trade in the province and handling 6.5 million US dollars of foreign exchange payment business under entrepot trade for enterprises, in 2022, the cross-border fund settlement of new offshore international trade was 761 million US dollars, and the business volume increased by 16.55% year-on-year.
(Contributed by Hangzhou Municipal Bureau of Commerce)