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Faster customs clearance cuts cost, lifts efficiency
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IT used to take about two weeks for foreign research equipment to arrive at USP-China’s laboratory in the Shanghai Free Trade Zone, but now the cargo gets there in two days.
“It’s all because of the ‘enter first, declare later’ policy,” said Feng Bingbing, general manager of USP-China, a Shanghai-based research and development arm of United States Pharmacopeia. “Our logistics cost has been cut by about a quarter and our lab’s global competitiveness has vastly improved.”
The “enter first, declare later” policy is one of 23 measures unveiled in the trade zone last May to simplify customs procedures. It has also been hailed as one of the most welcome, according to the Trade Environment Satisfaction Survey recently released by the American Chamber of Commerce in Shanghai.
The survey canvassed nearly 100 respondents, most of them with annual operating incomes of US$100 million or more.
Under the policy, companies in the zone can take delivery of cargoes after an initial, simple declaration. The full customs formalities take place later. About 52 percent of respondents in the survey said faster customs clearance has lowered costs and improved efficiency.
Feng said time factors in international shipping are critical for his laboratory.
“It allows us to start using equipment and reagents while customs processing is still underway,” Feng told Shanghai Daily. “That gives us a commercial advantage and saves us money on warehouse storage.”
USP-China said faster customs clearance has helped it almost double research activity. Some 419 companies in the zone are now using “enter first, declare later.” In the first seven months of this year, 4,865 orders were processed under the policy, said Zhang Hong, head of the Shanghai Customs Processing Trade Supervision Division.
“Enterprises can choose whether to use the policy or not, according to their own needs,” he said. “Some cargoes, like the hazardous substances, aren’t covered by the policy.”
Other Free Trade Zone measures, including easier clearance for artworks, have also been popular among companies. Origin Supply Chain Management Co and other enterprises have also benefited from a new supervisory measure. By connecting cameras in warehouses with the customs’ system, the customs can monitor in real time cargo at different clearance stages, which allows enterprises to centralize the storage.
“We can now integrate two warehouses, two management systems and staff together, which has greatly lowered costs in clearance and storage,” said Huang Yingming, president of the company.
In July, the Shanghai Entry-Exit Inspection and Quarantine Bureau introduced regulations on risk control related to “special” articles, including microorganisms, human tissue, biological products and blood products coming into the Free Trade Zone. The measures have helped shorten the normal review time.
Some 12,861 batches of such “special” articles were approved under the new system in Shanghai.
“We’re preparing for the establishment of the Zhangjiang Air Cargo Service Center,” Zhang told Shanghai Daily.
The center, once in operation, will allow cargoes to be quickly transported between Pudong International Airport and the Zhangjiang High-Tech Park, cutting clearance time from two working days to about seven hours.
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