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High-gold-content “Dalian Model” Is Established in the Construction of the Pilot Free Trade Zone
Incremental-Radical Innovation Is Encouraged

        Recently, the State Council has officially issued the Notice on the Replication and Popularization of the Fifth Batch of Reform Experience of Pilot Free Trade Zones, requiring the replication of 18 pieces of experience in the reform nationwide. Among them is the reform experience of Dalian Area of “whole-process supervision on the quarantine of imported grains”. That is another piece of “Dalian experience” that has been popularized throughout the country after “bonded mixed ore supervision mode” was selected into the fourth batch of reform experience of pilot free trade zones. 

        Liaoning Pilot Free Trade Zone Dalian Area gives full play to its first-mover advantage, bases itself upon Dalian characteristics, forms “Dalian experience”, and turns the “test field” of opening-up and reform into an “experience output place” in the construction of the pilot free trade zone. Its builders have made unremitting efforts and achieved preliminary results. 

        Multi-level and multi-dimensional innovations are advanced on all fronts. 

        It is often said that Dalian is a “highland” for the opening-up of the Northeast. Then Dalian Pilot Free Trade Zone is bound to be the explorer of this highland that is at the forefront of opening-up. Its all-round innovations in administrative service model and administrative service mechanism often surprise its service objects. 

        Relying on the new-generation information technology, Pilot Free Trade Zone Dalian Area builds an advanced network platform and an automated and intelligent management and service channel to promote the innovation of administrative service model and further improve business environment and efficiency. The export tax rebate comprehensive service platform and free trade financial online service platform independently developed by Dalian Area combine the variety of functions of export tax rebate and free trade finance on the information service platform and will play an important role in shortening the time of tax rebate and account opening and improving the level of trade facilitation. The remote self-release model is an intelligent release system that combines the concept of trade facilitation and information technology, through which enterprises can apply for “paperless customs clearance” at the terminal of self-service equipment through the internet to go through the procedures of customs clearance without leaving the house and realize 24*7 customs clearance. To improve the level of trade facilitation through information technology has now become an effective carrier for building a high-level platform for opening-up. 

        To promote administrative service mechanism innovation, Pilot Free Trade Zone Dalian Area clears the obstacles in its work and changes some of the links in its original work to make the work process smoother and more efficient. When canceling the original work procedure, enterprises need to get the invoices for cancellation, return the tax control equipment, settle the tax payable and have their production and operation status checked and verified before the tax payers go to the industry and commerce authority for cancellation registration. The taxation department has implemented a raft of measures such as simple taxation cancellation innovation, clarifying taxation matters, simplifying acceptance procedure and consolidating examination and approval standard, and the cancellation process has been greatly simplified. The notification commitment system in examination and approval changes the one-way power relationship in traditional administrative examination and approval, turns the relationship of the examination and approval authority and applicants into a cooperative and interactive relationship, and makes the examination and approval authority and project applicants equal civil responsibility subjects, which is a valuable attempt to transform government functions. 

        Innovating work content with existing policies and innovating related business with existing policy space, the innovative service customized according to the actual needs of administrative service objects intuitively shows the “magic” of innovation. Taking the best practical case of “bonded mixed ore” as an example, Dalian Port mixes two or more iron ores from different producing areas with different components under bonded status, breaking the conventional operation of mixing ores only in steel mills or mines. Dalian area has taken the lead in port operation of mixed ore in China, created “Dalian Standard” in mixed ore business and successfully entered international markets of Japan and South Korea. Since the start of mixed ore business, the business volume of mixed ore at Dalian Port has exceeded 30 million tons, the international transfer volume has exceeded 15 million tons, and the influence and brand value of “Dalian standard ore” has been increasing. In addition, in the field of finance, the innovative experience like cross-border ship financing service, “Tonggangda” precision service for port economy and bulk commodity derivative transaction service is service object innovation under the orientation of trade facilitation of the Pilot Free Trade Zone. 

        “Pilot free trade zones are not policy depressions but highlands of policy innovations.” That is a clear requirement of the Party Central Committee and the State Council for the construction of pilot free trade zones. Taking institutional innovation as its “national mission”, along with its radical reform, Pilot Free Trade Zone Dalian Area attaches great importance to incremental institutional innovation. Although many institutional innovations seem to be only minor adjustments to existing systems, or removal of some links or enhancement of some small functions, they have brought great convenience to service objects. For instance, WeChat name verification in enterprise registration, “one-on-one” coordinator system and simplified process of parallel-import cars are all “small steps” in the optimization of system frame and working process, but they are like small streams that flow into the ocean and eventually become a “big step” in the transformation of government functions. 

        Breakthrough innovations that change the whole working process can achieve more intuitive reform effects: through the “centralized registration place management” system in enterprise registration, centralized registration of enterprises can be managed normatively by entrusted law firms, a “centralized registration place” data platform is built, and a liaison system is established, which not only improves the utilization rate of government resources but also explores the social participation model of formative and ex-post supervision. 

        In the past two years, 15 000 enterprises were newly registered in Pilot Free Trade Zone Dalian Area, the number of its stock enterprises exceeded 25 000, and 940 of them were foreign-owned enterprises, respectively accounting for 39%, 49% and 68% of that of Liaoning Pilot Free Trade Zone. In 2018, the total import and export volume of Dalian Area reached 159.622 billion CNY, and its foreign investment in actual use was 1.844 billion USD, respectively accounting for 95.9% and 96.9% of that of Liaoning Pilot Free Trade Zone. The “Intel model” for customs clearance of import and export goods is a typical case of integration of innovations. The “1+3+5” en-echelon-matrix innovative service system increases the speed of logistics in the Area through three measures of “self-transportation”, “entering the area before customs clearance” and on-site inspection, and when it is used with five other measures such as “separate delivery, centralized report”, management of cargoes classified by status and transfer of bonded goods, the domestic circulation of cargoes and the examination and approval of processing trade are optimized, and the customs clearance efficiency is increased by 20%, which helps Intel’s Dalian plant set a record as the quickest Intel plant in the world to put new projects into production. 
Source: Dalian Daily