A trial of China's first free trade zone will be launched in Shanghai's Pudong New Area as early as the end of this year, Shanghai Customs said on Friday.
"Customs formalities within the free trade zone will be so simple and convenient that the entry of goods will only require registration of the variety and value of the goods without any inspection and intervention," said Huang Shengqiang, director general of Shanghai Customs. "Also, there will be no declaration process for goods coming in and out of the zone."
Pudong authorities have accelerated preparations to consolidate the three bonded zones in the Waigaoqiao port, Yangshan Deep-Water Port and Pudong International Airport into the free trade zone.
During a research tour in Shanghai in March, Chinese Premier Li Keqiang called for greater efforts to launch a free trade zone in Shanghai in order to further open up markets and improve China's economy.
Market watchers said the free trade zone trial will not only benefit the city's trading industry but boost financial and shipping sectors as well. It will help shore up the development of ports, shipping, airport and logistics sectors, Haitong Securities said in a recent research note.
A free trade zone would also boost current account projects and attract more foreign capital, according to market watchers.
The Shanghai government is now awaiting approval from the State Council, China's Cabinet, to kick off the trial.
The city, especially the Pudong New Area, has always been at the forefront of innovation and running trial programs in economic reforms. A number of trial programs are first tested in Shanghai, which is aiming to become the country's trade, economic, financial and shipping center, before being introduced elsewhere.
Shanghai's gross domestic product grew 7.8 percent from a year earlier to 493.7 billion yuan (US$78.9 billion) in the first quarter. The rate picked up from last year's 7.5 percent rise and was higher than the national average of 7.7 percent.
With only 0.06 percent of China's land, 1.8 percent of its population and 1.7 percent of its investment, Shanghai has produced over 4 percent of the nation's economic output.
Shanghai is targeting economic growth rate of 7.5 percent this year, hoping to accelerate industrial restructuring, raising incomes and enhancing efforts to combat pollution, Shanghai Mayor Yang Xiong said earlier.
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