CIIE never ends: Shanghai innovation system turns exhibits into commodities

By: gjb Launch time: 2019-03-17 09:03:06

Spanish ham, Australian wine, Japanese rice...The "star exhibits" in more than 20 import fairs have entered the Hongqiao Import Commodities Exhibition and Trading Center to meet ordinary consumers in a bonded way.

The first China International Import Expo (CIIE) held in Shanghai in November last year, the 6-day-exhibition, attracted 3,617 overseas enterprises to participate, with a turnover of $57.8 billion. How to turn the exhibitors at the exhibition into commodities? Shanghai Authority explored the construction of “6+365” perennial exhibiting and trading platform, making the CIIE ever going.

One month after the closing ceremony of CIIE, the Hongqiao Import Commodities Exhibition and Trading Center opened, combining bonded exhibition, commodity trading, logistics and warehousing, and customs clearance services together. Compared with duty-paid transaction, bonded transaction has two advantages for traders. The first one is that we can change the pre-payment of customs duties into after-sales tax so as to activate the working capital and reduce the capital occupation rate. Another advantage is that the merchandise can be returned to the bonded storehouse and then be carried to other places to sell if the product is not well received in this market, thus turning the "dead goods" into "live goods".

"Yingqixing" rice from Hokkaido, Japan is the "hot style" in the first CIIE, and it is the first time for Shanghai Pushihui import and export co., ltd. to enter Chinese market by bonded exhibition and transaction. After the rice is imported, it will be directly transported to the "bonded logistics warehouse" under the special supervision of the customs adjacent to the trading center. After the rice is sold in the exhibition and trading center, the importer will pay taxes in the form of distribution collection at the end of the month, and the saved capital cost will be used to benefit the consumers by reducing 10% of the price of the products.

The Shanghai customs, the Shanghai municipal Commission of Commerce and the Hongqiao Central Business District Administrative Committee have made innovations across departments to promote the pilot bonded transactions. The platform implements the auditing and dynamic supervision system for the merchants in the platform to realize the control of the brands and quality of the merchants and imported commodities through the entry threshold and exit mechanism. Institutional arrangements, including "guiding prices" for shop rents, "zero rents" for bonded warehouses and information services, and "customs duties" for sales prices, have saved logistics and capital costs for the enterprises.

According to the Head of commercial office of the Hongqiao Central Business District Administrative, so far, more than 50 countries, 400 brands and 8000 kinds of goods have been introduced to the first-stage exhibition and trading platform in Hongqiao Import Commodities Exhibition and Trading Center. The second stage has been completed and the type B bonded logistics center is scheduled to be put into use at the second import expo. To undertake the spillover effect of the expo, Shanghai will accelerate the construction of a higher level of open economy.

A series of innovative systems, such as the acceptance system of inspection results of imported commodities, overseas pre-test pilot system for new products launched in Shanghai, and "pre-classification" system for new products, were introduced to create a concept of " Shopping in Shanghai", attracting merchants launch their new products in Shanghai, thus making Shanghai the first choice of buying high-end brands and the gathering place for original brands. At the same time, the relevant standards of "Launching new product globally" and "First flagship store settlement" were formulated, the trademark protection of new product launch was strengthened, and qualified new product launch brands were included in the "Shanghai key trademark protection directory".

In the past, limited by policies and regulations, the promotion time and place of pure commercial activities were restricted, which affected the enthusiasm of some internationally renowned brands to take the lead in launching new global products in Shanghai. Shanghai Landscaping & City Appearance Administrative Bureau has set up a "green channel" of setting advertising flags in elevated roads, supporting Shanghai to build a global new product launch site. According to statistics, a total of 1,265 international and domestic brands held nationwide debuts in Shanghai in 2017. From January to October 2018, a total of 2,890 well-known brands held new product launches in Shanghai, doubling the number from the previous year.

Editor: Gu Chenglin

Responsible editor: Wu Jiali

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