Main Characters of Xinjiang's Frontier Trade

1. Diversified Trading Modes
The national current policy on frontier trade is formulated and issued on the basis of international habitual practice and is gradually switched to international manner. Xinjiang??s frontier trade has grown from single barter trade into a trade and economic structure involving barter trade, exchange fair between frontier people, tour purchase, service export and project undertakings featured by spot transaction.

2. Elastic Administrative System of Imports and Exports for Petty-sum Frontier Trade
In order to support the development of frontier trade, the state adopts an administrative manner of frontier trade different from general trade. According to the regulations of No.844 document from the ministry of foreign trade and economic relation, the foreign trade enterprises dealing in petty ?Csum business can export 11 local-produced key commodities under the state management. The ministry of foreign trade and economic relation, in the light of Xinjiang??s actual condition, arranges certain amount of export quota to Xinjiang and empowers the competent department of foreign trade and economic relation to issue permit for export. In terms of export, except for commodities managed by the state as key ones, open tenders are exercised and chemicals as well as chemicals likely as a source material of making drugs supervised. Other commodities are exempted from quotas and permits.

3. Special Tax Policies Enjoyed by Frontier Trade
The special tax policies enjoyed by frontier trade mainly cover: frontier petty-sum trade enjoy the policy on export rebates enjoyed by general trade and handle the procedures on export rebates in the same manner for general trade export.
The petty-sum trade enterprises import the commodities native to the neighboring countries from the designated frontier ports, Except for other commodities levied by tax according to the state regulations, carry out the policy on stipulated tax rate and half-collection in the aspects of duties and added-value tariff in import link.
The frontier people, who import commodities through reciprocal trade in the border region with per-capital daily value below 3000 RMBY, are exempted from collection of import duty and high-added tax in import link.
The frontier regions implement the import tax policy on the frontier petty-sum trade concerning the import of bartered materials under the external cooperation on economy and technology prior to the issuance of new frontier trade policies.

4. A greater variety of commodities in frontier trade and apparent increase in export
Propelled by a series of favorable policies headed by the national No.2 circular, Xinjiang??s frontier trade maintained a growing tendency of sustainable stability, whose total import and export volume has continuously gone up, variety and scope have been constantly expanded and export has been obviously increased. The main bulk exports include garments, shoes, daily sundries, chemical fiber products and food etc. while main bulk imports are pellet, steel material, fertilizer and scrape as well as waste metals. By the end of 2001, Xinjiang??s frontier imports and exports had amounted to 980.79 million USD, the decrease of 28.7% against that of the same period, taking up 55.37% of the total foreign trade (17.7148 billion USD), including frontier-trade export of 184.418 million USD, the decrease of 68.3 % against that of the same period and import of 796.61 million USD, an increase of 7.7% against that of the same period. The rapid advancement in frontier trade has become a key factor in boosting the growth of foreign trade in Xinjiang.