Guarantee bank account trial in FTZ

Enterprises in Shanghai's pilot free trade zone are allowed to open bank accounts to guarantee tax payments as Shanghai customs moves to streamline customs clearance.

The enterprises need to deposit a certain amount of funds in the accounts upon opening and have a letter of guarantee issued by banks before they are able to make delivery of goods before paying tariffs, according to a statement released yesterday on the FTZ's website.

Shanghai customs did not specify the amount which depends on a case-by-case basis.

When a company transfers goods outside the zone and customs say the duty has not been paid, the bank will deduct the amount that is payable. As soon as customs says the duty is paid, the bank will refund the amount automatically into the account.

The new account will cover customs matters such as centralized declaration, exhibition, inspection and maintenance of bonded goods outside the zone and processing trade on a trial basis.

The Bank of China, the Bank of Communications, China Minsheng Bank, China Merchants Bank and the Bank of Shanghai are the first batch of banks to operate such accounts for FTZ-based enterprises.