Shanghai offers biggest hint yet of zero-tariff policy at Lingang free-trade zone as it unveils plans for bonded facility

Shanghai mayor Ying Yong said on Sunday the city was in the process of building a big bonded facility at its expanded Lingang free-trade zone, adding to evidence that zero import tariff policies would be implemented to attract investments.

Ying said that the 119.5 sq km Lingang free zone, launched in August, would roll out additional tax incentives in the hope of turning it into a “modern city” with the greatest level of openness.

“We are chasing higher quality economic growth and looking to implement policies at Lingang, which cannot be enforced in other free-trade zones,” he said after the annual International Business Leaders' Advisory Council meeting. “It will be a territory with increased attractiveness for international businesses.”

The mayor did not reveal the size of the planned bonded area.

Shanghai doubled the size of its free zone in August by including Lingang, an untapped area with access to the Yangshan deep water port. The authorities said the expansion would result in a series of bold economic reforms to gradually transform Lingang into a free marketplace on par with Hong Kong and Singapore.

Local government sources has said duty exemption on imported goods would be a key incentive to bolster the development of Lingang. But the policy is still awaiting approval from the General Administration of Customs.