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Three Companies in Ningbo Free Trade Zone Launching Cross-border Barter Trade Trials

A batch of US$4 million worth of barter trade import and export business carried out by Ningbo Master International Trade Co., Ltd. and Iran has been reviewed and approved by the foreign management department. This marks a new breakthrough in the cross-border barter trade business pilot in Ningbo Free Trade Zone.

It is understood that this batch of business is the barter trade business of Ningbo Master International Trade Co., Ltd. for the import of Iranian agricultural products and the export of auto parts. From the second half of 2020 to February this year, Marstom has exported a total of US$2 million worth of Iranian auto parts and imported Iranian pistachios at the same value. At the end of February, pistachios imported from Iran successfully arrived at Ningbo Zhoushan Port. After the foreign exchange management department completed the review according to the relevant import and export documents provided by the company, the batch of cross-border barter trade business was officially completed.

As early as June 2019, Ningbo Free Trade Zone started the cross-border barter trade pilot work, and formulated the "Ningbo Free Trade Zone's RMB-denominated Cross-border Barter Trade Pilot Business Operation Measures" and "Ningbo Free Trade Zone Cross-border Barter Trade Pilot Qualified" "Operational Measures for Operators".

"In recent years, Chinese companies’ exports to emerging markets have grown rapidly, but trade with emerging markets often encounters shortages of US dollars and foreign exchange in some of these countries, making it difficult to further expand the scale of trade with these countries. Explore barter trade denominated in RMB, It can effectively alleviate the plight of the counterparty's shortage of US dollar foreign exchange reserves in the trade of emerging market countries, and increase the scale of trade with emerging markets." A person from the Ningbo Free Trade Zone said.

Rongtai International Trade (Ningbo) Co., Ltd. is the first barter trade pilot enterprise in our city. In the second half of 2019, Rongtai International purchased auto parts from domestic Chery Automobile and sold them to the general agent in Uruguay. The Uruguayan general agent purchased red wine equivalent to the above-mentioned auto parts and sold them to Rongtai International. Auto parts and red wine arrived at the port of destination in November 2019, and customs clearance was smooth. The relevant import and export documents were submitted to the regulatory authorities for review and filing. There was no actual foreign exchange in the entire business process.

In September 2020, the State Council approved the expansion plan of the Zhejiang Pilot Free Trade Zone. The plan clearly stated that it would support Zhejiang to "build a barter trade service platform." As the core area of Ningbo Area of Zhejiang Free Trade Zone, Ningbo Free Trade Zone should accelerate system innovation and expand the depth and breadth of barter trade.

It is understood that there are currently three pilot enterprises in Ningbo Free Trade Zone, namely Rongtai International Trade (Ningbo) Co., Ltd., Ningbo Master International Trade Co., Ltd. and Zhejiang Daqinguan Import and Export Co., Ltd. At the same time, Ningbo Free Trade Zone has also established a comprehensive service platform for cross-border barter trade, which includes functions such as pilot enterprise filing, commodity information management, business filing, and information collection. The pilot enterprises are included in online supervision through data comparison, verification, and early warning. , To realize the informatization management and control of the entire business process by the foreign management, customs, taxation and other regulatory agencies, laying the foundation for the normalized development of barter trade business.

The relevant person in charge of Ningbo Free Trade Zone stated that the next step will give full play to the "special supervision zone + free trade zone + international strong port" superimposed advantages to further expand the barter categories, pilot enterprises and business scale, and at the same time upgrade the comprehensive barter trade based on market needs. The service platform adds functions such as transaction matching, corporate services, and information release to build a more open and convenient cross-border trade business environment

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