On February 8, 2024, the Executive Committee of the Guangdong-Macao Intensive Cooperation Zone in Hengqin and the Guangdong Provincial People's Government Office for the Guangdong-Macao Intensive Cooperation Zone in Hengqin jointly issued the "Announcement on the Closed Operation of the Guangdong-Macao Intensive Cooperation Zone in Hengqin," marking that starting from March 1, 2024, the Guangdong-Macao Intensive Cooperation Zone in Hengqin (hereinafter referred to as the "Cooperation Zone") will officially commence closed operation. This initiative aims to further deepen Guangdong-Macao cooperation and promote the integrated development of the regional economy. This article seeks to analyze the regulatory provisions and rules of the Cooperation Zone's closed operation and their impact on relevant stakeholders.

Scope of the Cooperation Zone and Zoning Management
The implementation area of the cooperation zone spans approximately 106 square kilometers, divided into the "first line" between Hengqin Island and the Macao Special Administrative Region and the "second line" between Hengqin and mainland China. Certain areas, such as the Hengqin campus of the University of Macau, are administered by the Macao Special Administrative Region government, while other areas are monitored using electronic fencing.

Objects of Customs Supervision
In accordance with the Measures of the Customs of the Peoples Republic of China for the Supervision of the Hengqin - Macao Deep Cooperation Zone, the General Administration of Customs mainly supervises the means of transport, personnel, goods, etc. between the Cooperation Zone and Macao, and the Chinese mainland.

The specific objects of supervision include:
(1) Goods entering and leaving between the Cooperation Zone and Macao:These goods mainly involve trade with Macao, including goods in transit through the Cooperation Zone.
(2) Duty - free and bonded goods entering and leaving between the Cooperation Zone and the Chinese mainland:Refers to those goods that enjoy duty - free or bonded treatment according to specific policies.
(3) Goods declared for export from the Chinese mainland to the Cooperation Zone:Goods regarded as exports, enjoying correspondingExport Drawbackpolicies, etc.
(4) Articles released duty - free into the Zone through the open ports of the Cooperation Zone and then entering the Chinese mainland:The supervision of such articles when they enter the Chinese mainland again after entering the Cooperation Zone.
(5) Goods in the Cooperation Zone with incomplete customs formalities:Including goods that are transferred within the Cooperation Zone but have not completed the final customs declaration procedures.

3. The "First Line" and "Second Line" Regulatory Principles
? Goods entering the cooperation zone via the "first line" are exempt from import tariffs, value-added tax, and consumption tax in most cases, except where explicitly stipulated by laws and regulations.
? Duty-free or bonded goods entering the mainland via the "Second Line" shall undergo customs clearance procedures in accordance with relevant regulations on imported goods, and domestically sold goods shall be taxed based on their actual inspection status.

Cargo Transfer within the Cooperation Zone and Preferential Taxation for Domestic Sales of Processed and Value - Added Goods
? For goods produced by enterprises within the Cooperation Zone containing imported materials, if the processed value - added reaches or exceeds 30%, when the goods enter the Chinese mainland from the Cooperation Zone, import duties are exempted.
? The specific definition and scope of application of the processed value - added reaching or exceeding 30% are clearly stipulated, and in specific cases, the exemption from import duties is not enjoyed.

Management and Tax Rebate of Goods Exported from the Chinese Mainland to the Cooperation Zone
? Goods entering the cooperation zone from the mainland via the "second line" are treated as exports and are eligible for VAT and consumption tax refund policies.
? Under special circumstances, some goods are not applicable to the export tax rebate policy. For example: export goods for which the Ministry of Finance and the State Taxation Administration stipulate that the value - added tax refund (exemption) and duty - free policies are not applicable. Other goods sold from the Chinese mainland to the Cooperation Zone that are not eligible for tax rebate. Goods purchased by enterprises whose tax rebate or duty - free qualifications have been cancelled.

Simplification of Customs Declaration Procedures
Implement simplified declaration procedures for duty-free and bonded goods entering and exiting the "first line" of certain cooperation zones, including "minimal" and "sub-minimal" filing management methods.

"Simplified" record-filing management applies to duty-free and bonded goods that do not involve regulatory certificate management and are not subject to mandatory inspection and quarantine. "Simplified" record-filing management allows consignors, consignees, or their agents to submit simplified declarations by filling out a "Record-filing List," reducing the number of required fields and improving declaration efficiency.

The "Simplified-Plus" filing management applies to duty-free and bonded goods that involve regulatory certificate management or require inspection and quarantine as per regulations. Compared to the "Extremely Simplified" approach, the "Simplified-Plus" method requires additional information such as license numbers and ports of loading to be filled in the Filing List, ensuring the compliant import and export of goods.

Situations not applicable to simplified declarations
(1) The customs of the place of declaration is not Hengqin Customs
(2) The mode of transportation is not road transportation
(3) Goods that require inspection and quarantine certificates
(4) Bonded goods declared using the "centralized declaration" method
(5) Agricultural products subject to special safeguard measures applying for the application of preferential duty rates when leaving the Zone

Impact on Enterprises
The closure and operation of the Cooperation Zone provides enterprises with new trade facilitation measures. In particular, the duty - free or bonded policies will greatly reduce the operating costs of enterprises and improve trade efficiency. At the same time, the preferential taxation policy for domestic sales of processed and value - added goods will encourage enterprises to carry out the processing and manufacturing of high - value - added products in the Cooperation Zone.

Impact on Trade
The simplified customs declaration procedures and clear supervision principles will accelerate the transfer speed of goods, promote the trade development between Guangdong and Macao, and deepen the regional economic integration.

3. Impact on Regional Economy
The closure and operation of the cooperation zone helps to form a new open - economy system at a higher level, attract foreign investment, and promote economic growth in Hengqin New Area and even the economic belt on the west bank of the Pearl River.