SHANGHAI Aug 15 China will expand a scheme to
speed up tax refunds for companies that export via a Shanghai
port, the government said on Thursday, as it looks to boost the
city's role as an international shipping centre.
Exporters that send products abroad via Shanghai's Yangshan
deep water port, will from next month be able to recoup some
taxes as soon as ships set sail for Shanghai from feeder ports
in Nanjing, Suzhou, Lianyungang, Wuhu, Jiujiang, Qingdao, Wuhan
Previously only Qingdao and Wuhan were included in the
scheme, with tax refunds on goods sent from other ports of
origin only paid when cargoes eventually left Shanghai.
"It's good for (exporters) because they can get their money
back earlier, which is positive for their cash flow and
turnover," said Han Ning, a China-based shipping consultant with
Drewry. "It's also good for Yangshan."
Goods are often sent overseas via shipping hubs after being
moved from so-called feeder ports.
Shanghai, home to the world's busiest container port, is
competing heavily to increase its share of such transshipment
volumes against foreign ports such as South Korea's like Busan,
which offers incentives such as tax waivers.
The Ministry of Finance, the General Administration of
Customs and the State Administration of Taxation announced the
plan on Thursday.
Only companies with strong records for paying taxes will
qualify for rebates, they said. Refunds could come on taxes
including value added tax or consumption tax.
(Reporting by Brenda Goh; Editing by Joseph Radford)