Elimination of China Custom Transit: a Case Study of the Cooperation between Qingdao Port and Zhengzhou Dry Port

Xiao, Xi (2015) Elimination of China Custom Transit: a Case Study of the Cooperation between Qingdao Port and Zhengzhou Dry Port. [Dissertation (University of Nottingham only)]

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Custom transit is one step of custom clearance which is faced by many exporters when they export goods from the mainland of China. The transit formality requires exporters to preform custom declaration in the local custom and to do a custom transit in the port of departure. Such procedures aim to keep the export goods under custom control. Although custom transit indeed safeguards the goods on the way, it actually complicates the custom clearance formalities and increases the transaction cost of the international trade. Therefore, simplifying custom transit procedures could bring benefits to China export business, which contributes to approximately 12% of world export values in recent years (World Trade Organisation, 2015).

The biggest problem in simplifying or eliminating custom transit procedures between dry port and sea port is the absence of a representative model. Despite of the fact that some port authorities and customs attempt to eliminate custom transit procedures, it is challengeable for them to find a suitable model to achieve their goals. To generate a representative model, valuable previous theories and successful live experiences were put into practice. A successful case of custom transit elimination is the cooperation between Zhengzhou dry port and Qingdao sea port. By interviewing key persons and visiting Zhengzhou dry port, a specific export model between Zhengzhou dry port and Qingdao port is generated. To extend the specific model to the universe, previous research of Monios and Wang (2013) and trade facilitation concepts are also concerned.

The result of this thesis shows a one-platform export model which is a representative export procedure without custom transit procedures. An information hub and a common information platform are used in that model to achieve one time custom clearance at the dry port. Many logistic parties, such as freight forwarders, customs, docks, and ship-owning company, are likely to get benefit from this model. If this new export model which without custom transit procedures will be widely referred, it may bring potentials for China`s inland development and export businesses. However, our export model is a basic framework with many preconditions. Trade facilitation achievements of applying our model, such as reduction of transaction cost, formalities improvement, and commercial terms modifications, are influenced by beneficial condition of the model.

Item Type: Dissertation (University of Nottingham only)
Keywords: custom transit, export model, China, trade facilitation, case study, dry port
Depositing User: Xiao, Xi
Date Deposited: 24 Mar 2016 09:25
Last Modified: 15 May 2016 17:32
URI: http://eprints.nottingham.ac.uk/id/eprint/30048

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