A second-hand rotary drilling rig of Sunward was transported to the Lianyungang Customs for inspection after completing customs clearance process at the Xingsha Customs recently. It will be delivered to Uganda then. This is the Hunan Pilot Free Trade Zone’s first case of second-hand construction machinery customs clearance.

Being produced only one-odd years ago, this exported rig had been used for less than 1,000 hours, and has been renovated to be almost new. The buyer is a Ugandan house construction enterprise, who will take delivery of the rig at Kenya’s Mombasa Port and then transfer it to Uganda.

As the world’s largest construction machinery producer, exporter, and reserve market, China has nearly 10 million construction machineries at present. However, its second-hand machinery export is still limited compared with the developed countries. The Hunan Pilot Free Trade Zone takes the initiative to reform in such business. The Changsha Economic and Technological Development Zone undertakes the reform tasks, while the Sunward is designated as a pilot exporter.

However, there are several problems. On one hand, there are no such items of “second-hand construction machinery” in Chinese customs catalogue. On the other hand, there are no policies concerning export rebates for second-hand machinery which cannot enjoy the preferential tax policy for new exported machines. Beyond that, difficulties also exist in such factors as information asymmetry of seller, buyer, and the product; and, shortage of related standard, support, and channel.

To solve these problems, the Changsha Economic and Technological Development Zone joined hands with the customs and taxation authorities to roll out reform plans for second-hand construction machinery export, and encourage enterprises to participate.

The Changsha Economic and Technological Development Zone will roll out a series of measures, including: innovate customs clearance forms; optimize procedures of export rebates; formulate quality, assessment, inspection and detection standards for second-hand machineries; set up online and offline trading markets; establish overseas after-sales service centers and spare part centers; integrate second-hand machinery export with new business patterns such as cross-border e-commerce, and barter trade; and, remove impediments to the dual circulation of second-hand machineries, to explore key points and breakthroughs. Meanwhile, exhibition platforms, such as the China-Africa Economic and Trade Expo and the Changsha International Construction Equipment Exhibition, will be used to help construction machinery enterprises expand markets in Africa, Southeast Asia, and other Belt and Road Countries.

This article is from Hunan Provincial Government www.enghunan.gov.cn.

Translator: Pang Yuehui

Chinese source: hunan.gov.cn