It is a normal thing in life that something is broken and needs to be repaired. But when "big things" such as aircraft engines and car gearboxes break down, they often had to be sent back across the ocean to their original factories, which was time-consuming and expensive.

Now in the Hainan Free Trade Port, they have a new place to "rebirth".

The Ministry of Commerce and other four departments recently issued a notice on further improving the level of trade liberalization and facilitation of the Hainan Free Trade Port, introducing 16 specific measures in terms of promoting the optimization and upgrading of goods trade, promoting free and convenient service trade, and innovating new trade formats and models. How will the new policy help the development of Hainan Free Trade Port?

In October, reporters saw in the production workshop of CRRC International Rolling Stock Industry (Hainan) Co., Ltd. in the Haikou Comprehensive Free Trade Zone that automobile gearboxes and diesel engines from overseas were disassembled, inspected, repaired and reassembled, and "reborn" here. Zhang Zirui, the company's marketing director, said frankly that under the current model, imported parts and components required for maintenance are subject to bonded supervision without the need to pay customs duties and value-added tax in advance. This has greatly reduced the maintenance costs for overseas customers and also allowed the company's business volume to increase:

Zhang Zirui: The gearbox bonded maintenance business has increased from a few hundred units in the first year to a few thousand units this year. For overseas customers, they enjoy the advantage of using duty-free parts. It is hoped that in the future, the bonded maintenance gearbox remanufacturing business of this factory can reach 20,000 to 30,000 units per year.

There is no need to travel to Europe and the United States. Overseas automobile engines and aerospace engines can be shipped directly to Hainan, where they can be inspected and repaired before being shipped out again. Relying on the innovation of the free trade port's "two ends outside" bonded maintenance system, Hainan is accelerating the creation of a global high-end maintenance industry cluster. In order to further expand business space, Hainan has also extended its bonded maintenance business outside the comprehensive bonded area - qualified enterprises can undertake overseas equipment maintenance business outside the special supervision area under customs supervision. Hainan Longpan Oilfield Technology is an enterprise that implements this innovative policy. It is mainly engaged in the maintenance of diesel engines supporting overseas oil fields. Wang Yihui, corporate business manager, said:

Wang Yihui: What we do is bonded maintenance outside the zone, which is equivalent to a pilot application specifically made to the government to carry out bonded maintenance business in our park. We can maximize the convenience of building workshops and other equipment within the park to better meet customer needs.

In addition to the expansion of maintenance sites, the business space for bonded maintenance in the Free Trade Port is also constantly expanding. Previously, there were entry barriers for overseas faulty electronic products to be repaired. The Free Trade Port has innovated its supervision model and opened up channels for overseas electronic products to be inspected and repaired into the country. Hu Shaoqin, technical director of Silong (Hainan) Technology Co., Ltd., told reporters that the company carries out overseas electronic product testing and maintenance, and its business space continues to expand:

Hu Shaoqin: Now this laptop has some motherboard failures. Previously, domestic supervision on maintenance was very strict, and products without clear faults could not enter the country; now our bonded maintenance business allows electronic products to flow in first, be inspected and then repaired.

According to the "Notice" issued by the Ministry of Commerce and other four departments, Hainan Free Trade Port is supported to expand the "two ends outside" bonded maintenance catalog in a timely manner. For projects in the "two ends outside" bonded maintenance product catalog permitted by the state, Hainan Province will organize a comprehensive assessment on its own and assume the main responsibility. Those who pass the assessment can carry out relevant business in Hainan Free Trade Port. Zhao Xiaowei, a researcher at the National Information Center of the National Development and Reform Commission, said in an interview with Voice of China that "repairing the world" has become a new track. Overseas high-end equipment comes to Hainan for maintenance before leaving the country, further strengthening the strategic link function of the free trade port in the dual circulation pattern:

Zhao Xiaowei: Hainan Province organizes a comprehensive evaluation of the projects in the "two ends outside" bonded maintenance product catalog on its own, which is conducive to shortening the approval chain, giving full play to local subjective initiative, and opening up a smoother landing channel for bonded maintenance projects that meet the requirements while maintaining the bottom line of risk. At the same time, supporting the Hainan Free Trade Port in timely expansion of the "two ends outside" bonded maintenance catalog will accelerate the gathering of talents, technology and other elements, help promote the establishment of aviation equipment, high-end medical equipment and other fields, and improve the industrial roots.

The "Notice" released this time introduces 16 specific measures from three aspects: promoting the optimization and upgrading of goods trade, promoting free and convenient service trade, and innovating new trade formats and models. In terms of trade in goods, the "Notice" proposes that aviation kerosene entering Hainan's bonded warehousing facilities from abroad and used for export can be inspected according to international standards; it also supports the innovative implementation of the "two types of storage capacity, total volume approval, classified adjustment, and dynamic use" supervision model in the Yangpu Economic Development Zone to reduce customs clearance and warehousing costs for enterprises. After the listing of LNG futures, it will support the development of LNG futures delivery warehouse-related businesses, which will be conducive to cultivating bulk commodity trading and pricing functions.

Zhao Xiaowei: The above policy measures are in line with the top-level design of "five freedoms and conveniences, and one safe and orderly flow" proposed in the "Master Plan for the Construction of Hainan Free Trade Port". They will support the high-quality development of key industries such as petrochemical new materials and comprehensively enhance the global competitiveness of the free trade port.

The "Notice" also allows products that are bonded remanufactured in the special customs supervision area of ​​Hainan Free Trade Port to leave the area and enter the domestic free trade pilot zone. Does this mean that we can open up the domestic market? Zhao Xiaowei gave a definite answer:

Zhao Xiaowei: This marks that Hainan’s bonded remanufacturing has moved from “both ends outside” to “inter-internal linkage”. In addition, the policy is also conducive to the gathering of domestic and foreign business entities in Hainan, so that the industrial chain can be deeply embedded in the global division of labor.

Data show that in the first nine months of this year, Hainan's total import and export of goods was 285.44 billion yuan, an increase of 49.8%; the total import and export of services was 56.95 billion yuan, an increase of 11.7%. Cross-border maintenance, inbound tourism, games overseas and other fields performed well. Ministry of Commerce spokesperson Huang Ling said yesterday (29th) that the new measures introduced this time innovate the trade management model, respond to the demands of business entities, and further expand independent and high-level opening up.

Huang Ling: These measures will further enhance the trade management and service capabilities of Hainan Free Trade Port and drive the quality and upgrading of related industries. In the next step, the Ministry of Commerce will work with relevant departments and Hainan Province to implement relevant measures to better build a free trade port with Chinese characteristics.