Coronavirus outbreak creates concerns to business, many would argue slowdown will happen to Chinese economy and inevitably produces negative impacts to business.
Xiamen, major export hub, just released a series of economic impetus to encourage business, which definitely benefit you.
On February 8th 2020, Xiamen Government, through a decree, issues the following measures, (roughly)
1) Local financial institutions should support SMEs with credit facilities no less than 2019;
2) Reduce loan cost, say 10% off the normal interest rate to those difficult business;
3) National Development Bank to release loans at 100bps off LPR;
4) Government subsidy to be released to those enterprises of medical materials production, etc;
5) Delay allowed in tax payment for February;
6) Reduce property rent (state owned properties), exemption for 1 month, 50% for another 2 months; the owners of private properties are encouraged to do so;
7) Government tax/fees, reduction can be done upon application;
8) Social security payments (unemployment contribution, medical contribution, pension contribution) can be extended to up to 6 months;
9) Employment encouragement, 50% of 2019 contribution can be refunded upon no dismissal;
10) Subsidy to those which carried out production during Spring Festival holidays for medical/heathcare products and logistics relating to distribution;
11) New employment subsidy, for those first employed to Xiamen, 500 Yuan per head should be awarded to the company employing them;
On top of the above, Xiamen further put out encouraging policies on Conference & Exhibition, foreign trade, tourism, logistics and port/shipping yesterday.
For port/shipping business, to respond to China Shipowners Association's Appeal, the local government has the following, (dated 20 February 2020)
1) Exemption of port dues, for containerized cargoes, port dues and port security facility levy are exempt; (Feb 1-June30, 2020)
2) Pilotage, only 50% is collected; ceiling is being set to container ships over 60000 NT; (Feb 20-June30, 2020)
3) Trans-shipment Cargo lumpsum handling fee, further 10% off the agreed rates set in the agreements between port operators and shipping companies; (Feb 1-June30, 2020)
4) Reduce or exempt truck parking fee, exemption for February, 50% off March and April; (Feb 1-June30, 2020)
Remember 11 million boxes (TEU) were handled last year. I would reckon, the local government will give up 80 -100 million RMB as cargo port dues, about 30 million RMB to security fee; for a Panamax ship, pilotage will be ignored by 13,000 RMB per shift. All these can be found on Xiamen Government website, and your local agents also will give you the detailed information.
Source:Simon Young
The opinions expressed herein are the author's and not necessarily those of The Xinde Marine News.
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