Using the tax policy of “opening up the first line and controlling the second line,” the Guangdong-Macao In-Depth Cooperation Zone in Hengqin, Guangdong province, formally began closed-loop operation on Friday. The “first line” is the border between Hengqin and the Macao Special Administrative Region, while the “second line” is the border between Hengqin and other areas of the Chinese mainland, according to the zone’s executive committee. Under the closed-loop operation, some items will enter the cooperation zone through the “first line” and be exempt from tax, while other commodities will be bonded. Regulations will apply to the taxes on imported items that enter the mainland through the “second line”.
Many Macao people were waiting to cross the border to Hengqin on Friday morning, bearing fruits, cooked meats, vegetables, and other products. They were lining up in the entry hall. According to a customs officer, items that satisfy the requirements will be released from customs duty-free, unless they are expressly stated by laws and administrative regulations not to be exempt from tax. The closed-loop operation, according to Li Weinong, director of the zone’s executive committee, is a crucial step in carrying out the initial goal of encouraging the moderate and diversified development of Macao’s economy.
“The policy will effectively promote the efficient and convenient flow of logistics, people, funds and information between Hengqin and Macao, allowing Macao residents who study, work, start businesses and live in the cooperation zone to feel a more similar living environment to Macao in the zone, and create valuable new development space for new industries and formats in Macao,” Li stated. According to Fu Yongge, deputy director of the executive committee of the zone, it is an important step in hastening the integration of laws and procedures and advancing integrated development between Macao and Hengqin.
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