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OPINIONS OF THE STATE COUNCIL ON PROMOTING THE DEVELOPMENT OF THE LOGISTICS INDUSTRY |
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(No. 19 [2005] of the State Council promulgated on June 9, 2005) |
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SUBJECT : LOGISTICS INDUSTRY |
ISSUING DEPARTMENT : THE STATE COUNCIL OF THE PEOPLE'S REPUBLIC OF CHINA |
ISSUE DATE : 06/09/2005 |
IMPLEMENT DATE : 06/09/2005 |
LENGTH : 3,129 words |
TEXT : |
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With the further development of the reform and opening-up policies and the improvement of the socialist market economic mechanism, the logistics industry is playing an increasingly prominent role in aspects such as promoting production, guiding consumption, promoting the adjustment of economic structure and economic growth. At present, the overall layout of supply and demand in our commodity market has undergone a fundamental change and the international competition we face is becoming more and more fierce. However, there still exist problems such as comparatively small scale of logistics enterprises, low organizational degree, low modernization degree and imperfect market mechanism in the logistics field, which imperatively requires us to set up and carry into effect a scientific development concept, build a large market, develop a large-scale trade, vitalize large logistics, accelerate the integration of domestic and overseas trades and the integration of trade, industry and agriculture, and promote the adjustment of the economic structure and transformation of economic growth mode so as to contribute to promoting the coordinated development of urban and rural areas and a sound, fast and sustainable development of the national economy. To this end, we put forward the following opinions:
I. INTENSIFYING REFORM AND ELEVATING THE COMPETITIVENESS OF LOGISTICS ENTERPRISES
(1) We should make efforts to promote the reorganization and system reform of state-owned logistics enterprises. We should actively promote the reform of state-owned logistics enterprises and establish a modern enterprise system. The people's governments at all levels shall, in light of their local situations, adopt all kinds of measures to support the reorganization and system reform of state-owned logistics enterprises and intensify the vitality thereof and elevate the profit-making capability. For any state-owned logistics enterprise that has been at a loss for a long term and has no hope of changing the situation, we should dispose of them by lease, sale, debt reorganization and bankruptcy, according to law; we should support enterprises to carry out inter-industrial, inter-regional and trans-ownership asset reorganizations and encourage all kinds of capital to participate in the reorganization and reform of logistics enterprises. In the process of further carrying on the reform of logistics enterprises, we should pay attention to preserving the credit assets of banks and preventing any evasion or discarding of bank debts.
(2) We should handle the historic burdens of state-owned logistics enterprises in a proper manner. The state-owned logistics enterprises are allowed to incorporate the land used or allocated into the total assets of the enterprise to set off their debts after making up the formalities for transfer and paying land transfer fees. State-owned enterprises may, upon the approval of the administrative departments of public finance and state-owned assets, set off the historic debts by selling the state-owned property right held according to the relevant provisions of the state.
(3) We should deploy the employers in an appropriate manner and lower the reform costs of state-owned enterprises. The state-owned logistics enterprises may enjoy the Implementing Measures for Large and Medium State-owned Enterprises to Separate Their Major Business from Auxiliary Ones, to Reform the Latter and to Resettle Surplus Employees (No. 859 [2002] of the Economic and Trade Commission) of 8 departments including the original state Economic and Trade Commission. For the income generated from the logistics enterprise's selling off its self-owned property right or office places and the income generated from the disposal of the land used by the enterprise according to law may be used as a priority for the payment of enterprises for the premiums of social insurance and expenses for deploying employees. For the assets of state-owned medium- and small-sized logistics enterprises that are sold exclusively to the business operators or employees of enterprises, the procedures for "bidding invitation, auction and affiliation" shall be improved and shall not be carried out until the procedures for decision-making, asset examination, financial auditing and asset appraisal and verification have been gone through. The rights and interests of enterprise employers shall be safeguarded. Under equal pricing conditions, the assets shall be sold as a priority to employees of the enterprise. Where the asset is sold to any other entity or individual, we should effectively resettle the employees in an appropriate r way. For the logistics enterprises with real tax payment difficulties, the enterprise may apply for deducting or exempting their real estate tax on the production buildings and their urban land use tax according to the provisions in force.
(4) We should accelerate the cultivation of large logistics enterprise groups. We should, according to the market economic law and the world trade rules, actively foster a group of large logistics enterprises with good brands, self-owned intellectual property rights and with an outstanding major business, strong core competitiveness and international competitiveness. The logistics enterprises with competitive advantages are encouraged to realize scale expansion by way of holding share or controlling share, contracting, merge, acquisition, custody and franchise operations, and shall guide and support logistics enterprises to develop into large powerful enterprises.
The relevant departments of the State Council and the relevant financial institutions shall support logistics enterprises to develop into large powerful enterprises and grant support in aspects such as the arrangement of foreign trade development funds granted by the Central Government and Treasury bond funds, the establishment of financial companies, the distribution of stocks and bonds, and the provision of financial services. The large logistics enterprises that are singled out for fostering by the state may directly apply to the Ministry of Commerce for import/export quotas, licenses, the right to state-run trade and the relevant qualifications.
The local people's governments at all levels shall, in combination with the actual situation, adopt specific measures to support the development of the state and local large logistics enterprises.
(5) We shall further ease and revitalize the medium- and small-sized logistics enterprises. The Ministry of Commerce, the National Development and Reform Commission, the Ministry of Finance and the Ministry of Science and Technology shall, according to the orientation and procedures for the use of funds, support the medium- and small-sized logistics enterprises in the aspects of arrangement of foreign trade development granted by the Central Government, the special development funds of medium- and small-sized enterprises and the scientific innovation funds of medium- and small-sized enterprises. The logistics enterprises with a good conditions are encouraged to carry out logistics business abroad.
The local people's governments at all levels shall take effective measures to support the development of medium- and small-sized logistics enterprises and support them in the aspects of market access, credit guaranty, financial services, logistic services, talent trainings and information services.
(6) We should make efforts to create an environment of fair competition for logistics enterprises. We should accelerate the steps of power price reform and actively promote the rule of same price for users of a same grid by industrial and commercial enterprises. We should guide and regulate the sales promotion and purchasing transactions of retailing enterprises, crack down the commercial frauds according to law and rectify the order of regulation and logistics. We should promote the opening and reform of the logistics industry in an orderly manner, encourage logistics enterprises to implement the integrated operation of domestic and foreign trade and build a favorable environment for the fair competition of domestically- and foreign-funded logistics enterprises.
II. ACCELERATING INNOVATION AND ELEVATING THE MODERNIZATION OF LOGISTICS
(7) We shall effectively promote the rapid development of franchise operations. All the departments of the State Council and the local people's governments at all levels shall further study, formulate and improve the measures for implementation and carry into effect the Notice of the General Office of the State Council on Forwarding Some Opinions of the Office for Economic Restructuring under the State Council and the State Economic and Trade Committee on Promoting the Development of Chain Operations (No. 49 [2002] of the State Council).
(8) We shall promote the logistics enterprises to carry out innovations on the ways and techniques of logistics . We shall make full use of the means of public finance and finance to support logistics enterprises to carry out structural adjustment and put the focus on the popularization and application of modern ways of logistics. The local people's governments at all levels shall encourage the development of chain enterprises in aspects such as financial subsidy and land use, especially establish marketing networks in urban communities and rural areas. It is encouraged to develop the recycling economy and offer financial support to the advantageous enterprises that engage in the recovery of renewable resources to expand their recovering networks by chain operations. We should intensify the reform of the traditional ways of operation of the logistics industry by means of information technologies, adopt modern logistic management modes, enhance the management efficiency, lower the cost and encourage all kinds of logistics enterprises to develop e-commerce.
(9) We should encourage the development of logistic distribution centers. Where an enterprise uses the use right of the land allocated by the state to attract capital and equipment for the establishment of a logistic distribution center, it may, after going through the formalities for transferring the operational land and paying the transfer fees of the land use right according to the market price, make its contribution with the land use right as legal-person assets. According to the city planning, where it is necessary to dismantle, relocate or remove facilities such as old warehouses and establish new logistic distribution centers, the municipal governments shall, when dismantling or withdrawing the land use right and buildings from enterprises, make reasonable compensations according to law, and provide land for the purpose of urban logistics. The land used for the construction of agricultural product warehouses shall be treated as warehousing land.
III. INTENSIFYING THE LOGISTICS INFRASTRUCTURE CONSTRUCTION AND ESTABLISHING AND IMPROVING THE PUBLIC INFORMATION SERVICE SYSTEM IN THE LOGISTICS FIELD
(10) We should intensify the input for the logistics infrastructure construction. We should make active use of policies and measures such as fiscally subsidized interest rates to intensify the input for the construction of logistics infrastructure such as wholesale markets of agricultural products and logistic distribution centers; we should intensify the foods security, support the development of "Three Green Project", establish and improve the quarantine and testing system of foods in the logistics link, implement the system of harmless disposal with the expenses arising which are borne by public finance being incorporated into the budgets of public finance of all levels.
(11) We should establish and improve the public information service system in the logistics field. The central public finance will allocate a certain amount of funds to support the construction of the national public information service system in the logistics field and arrange a certain funds to support the construction of the national market information service system from the development funds for foreign trade granted by the Central Government. The local public finance at all levels shall intensify the capital input and support to the construction, operation and maintenance of the local commodity information service system. The administrative department of commerce shall formulate a planning for the construction of the public information service system in the logistics field and intensify the administration thereof.
IV. ESTABLISHING A SYSTEM OF CONTROL AND EMERGENCY HANDLING SO AS TO ENSURE THE STEADINESS AND ORDERLINESS OF THE DOMESTIC MARKET
(12) We should establish and improve the system of reserving important commodities. We should further improve the central reserve system of life necessities such as sugar, meat and for-border-sale tea and important commodities such as cocoon silk, and handle the commodity reserve problems left over by history in a proper manner. The expenses for the storage of central reserve commodities shall be implemented according to the relevant provisions. The local people's governments at all levels shall establish their local reserve systems of life necessities in combination of their real situations and the storage expense required shall be settled by the relevant local people's governments.
(13) We should establish a quick reaction and control mechanism of emergencies. The expenses for central emergent control shall be guaranteed by the Ministry of Commerce and the Ministry of Finance according to the provisions of the state on the reaction guaranty for relevant contingencies so as to ensure the reasonable expenses for organizing the supply of reaction materials for emergencies. The local expenses for emergency reaction and control shall be borne by the local administrative department of commerce and the department of public finance according to the relevant provisions of the local people's governments.
V. SUPPORTING THE DEVELOPMENT OF THE BUSINESS SERVICE INDUSTRY SO AS TO FACILITATE THE PEOPLE'S LIFE
(14) We should support the development of the service industry. We should support the development of commercial networks of communities so as to form an urban service network which is complete in varieties and facilitates the people. We should put the focus on supporting the construction of convenience store networks, breakfast networks, Muslim food and beverage networks and networks of waste material collection depots that are extremely important in the people's life. In the urban residential areas newly developed and constructed, the houses and land used for commercial networks and the convenience networks that are the public asset of the residential areas shall not be used for any other purpose. All regions shall develop a comprehensive business service network for rural communities for the purpose of improving the production and life conditions of peasants and facilitating the consumption demand of peasants.
The local people's governments at all levels shall resort to all kinds of measures to resolve the bathing problem for low-income groups and place priority on guaranteeing the water used for common bathing pools for the general public and grant preferential policies. For the service enterprises that accept laid-off personnel and for those laid-off personnel who turn to the service industry as a solution of their employment, we should effectively implement the relevant preferential policies of re-employment according to the relevant provisions. The economic chain restaurants are encouraged to carry out reforms on the facilities of sanitation and security. We should encourage and support the development of newly emerging service industries.
VI. Actively Fostering A Large Uniform Market and Enlarging the Domestic Consumption Demand
(15) We should break regional blockade and accelerate the building of a unified national market. We should effectively clear away the relevant provisions that restrict the formation of a unified national market and that contribute to any regional blockade, abolish all kinds of illegal collection of fees, promote the construction of a "green passage" for the logistics of fresh agricultural products through the whole country and intensify the law enforcement and the publicity of public opinions.
(16) We should intensify the protection of intellectual property right and implement a brand-based strategy. The logistics enterprises are encouraged to build up and maintain their credit of trademarks and foster their own brands. We should intensify the crackdown on any infringement and pay attention to the attestation and protection of "famous trade marks" and "widely famed brands" of famous logistics enterprises and national and local long-established shops.
(17) We should establish and improve the rural logistics system. We should intensify the construction of the rural market, improve the logistics infrastructure facilities and promote the formation of the rural market. The regions with mature conditions shall give fiscal support by arranging a certain amount of funds in the financial budgets. The powerful logistics enterprises are encouraged to improve the rural logistics networks by way of chain operations, explore the rural market by all kinds of means and guide the rural consumption. We should carry out the pilot work of chain operations of agricultural products, and calculate the input VAT at the reduced rate of 13% for the tax-free agricultural products purchased by the general taxpayer of value-added taxes; for the agricultural products purchased by an agricultural production entity from a piloting enterprise, the purchaser is encouraged to use the ordinary invoice produced by the agricultural production entity as a voucher for the deduction of input VAT. Where an piloting enterprise constructs any agricultural product cold-chain system of cold-storage, low-temperature storage and transportation, the method of accelerated depreciation may be adopted.
(18) We should regulate and develop the consumption credit. We should make efforts to expand the consumption demand, optimize the consumption structure, improve the means of consumption, enlarge the varieties, range and scale of consumption credit. We should break down monopoly, encourage competition and support commercial banks and logistics enterprises to popularize the use of bank cards on the basis of full coordination. We should make efforts to promote the construction of a commercial credit system.
VI. IMPROVING THE POLICIES AND REGULATIONS AND PROVIDING FORCEFUL GUARANTY FOR THE DEVELOPMENT OF THE LOGISTICS INDUSTRY
(19) We should accelerate the formulation of laws and regulations in our logistics field. We should accelerate the revision, research, and formulation of laws and regulations and administrative rules on regulating commodity logistics activities, subjects of logistics activities, market behaviors, market regulation and administration with reference to the legislation experience of the developed countries on logistics, on the basis of establishing and improving a unified, open, competitive and orderly modern market system according to the requirements of lawful government administration and uniform administration of logistics of the whole society.
(20) We should strengthen the troop construction, smooth out and intensify the administration of the logistics industry. The people's governments at all levels shall, according to the requirements of "intensifying domestic trade" raised by the Central Government, effectively strengthen the leadership of the people's government, give full play to the functionary roles of the administrative departments of the domestic logistics industry. We should intensify the troop construction, attract more excellent talents to participate in the administration of domestic logistics industry. We should intensify personnel training, establish a multi-level personnel training system, encourage colleges and universities as well as research institutions to establish special courses for the training of senior management personnel of the logistics industry, encourage intermediary organizations to carry out professional trainings and elevate the quality of practitioners in the logistics industry.
(21) We should fully mobilize the people's initiatives of all walks and promote the development of the logistics industry. The relevant departments of the State Council and the people's governments at all levels shall actively research and formulate policies and measures for the development of the logistics industry. The local people's governments may, according to the actual local financial strength and the development of the logistics industry, establish relevant mechanisms to promote the development of the logistics industry. We should intensify the theoretical research on logistics, do a good job in the construction of large-sized logistics facilities, and accelerate the standardized construction of the logistics industry. We should give full play to the function of intermediary organizations in the logistics industry, regulate the behavior of the industrial associations and create a favorable development environment for the logistics industry.
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