On 11 Nov. 2021, the People’s Bank of China issued the proposed “Notice Regarding Matters Concerning the Support for the Development of New Offshore International Trader (Draft for Public Comment)” (hereinafter “the Notice”, 关于支持新型离岸国际贸易发展有关问题的通知(征求意见稿)) for public opinions through 26 Nov. 2021.
The Notice claims that the new type of offshore international trade shall have the characteristics that “goods in such transactions do not enter or leave China’s first-line customs territory or will not be counted in the customs statistics”, including but limited to offshore resale, global procurement, entrusted offshore processing, and purchase of foreign goods form the contractor.
Additionally, the Notice instructs banks to conduct due diligence on such transactions and to support new offshore international trade based on the innovative development of the real economy and for the purpose of enhancing the integrity of the industrial supply chain.
Cover Photo by Jerry Zhang on Unsplash
Contributors: CJO Staff Contributors Team
