Monday, December 20, 2010

Export quotas to improve trade conditions and struggling under the twin goals of preventing corruption

 Published in permit approval and management of various types of exhibitions / trade fair booth distribution and use of bidding for major projects, [1] foreign trade situation, we will find that this case is just a reflection from one side of China's export quota system in improving terms of trade under the twin goals of preventing corruption and the difficult to explore.
also known as import and export quota limit is a government in a period of time the number of import and export of certain commodities or limit the amount of the direct implementation; within the prescribed time, the goods within the quota to import / export, over quota or not allowed to import / export, or must pay high only after the amount of duty or a fine import / export. The reason why many of the implementation of export quotas / license management, has deep roots.
is well known, although China is already the world's third largest trading nation, but trade pricing, trade and other aspects of income distribution has not really trading power, China's foreign trade for many years without significant improvement, or even worse, that recognized at home and abroad a true portrayal of China's foreign trade. and only in recent years highlight the Because of this, 20 years, the state has been important in efforts to strengthen coordinated management of the classification of exports, hoping to achieve improved terms of trade, increased export benefits. In this management system, coke exports ranked second category, the International market capacity is limited, with quotas and competitive, price sensitive exports, and domestic supply is limited, need to co-ordinate arrangements for the export of export commodities; the coordination of management guidance from the original plans to phase the development of export quotas to the present management. In other words, China's export quota system, the fundamental goal is to improve trade conditions for the international market pricing, to improve the effectiveness of exports.
At the same time, the intention is not right are concerned, such an export quota of well-meaning system means that rent-seeking opportunities, so the design of China's export quota system, must also comply with the maximum improvement of the goal to prevent corruption. The problem is that the dual goals may not be the complete reunification of the corresponding decisions of the export quota system in China is bound to suffer a double target suffering.
For example, if they do not consider other constraints, to minimize corruption in the process of quota allocation, public bidding is clearly the best approach. The problem is not only the existence of the normal world exporters (including traders and manufacturers), also specializes in the quota speculation speculators, and they are playing bidding mechanism is usually more skilled than the normal exporters, so it may be in the government, Chamber of Commerce hosted a market fails to win more gains proportion of the quota, and then obtain high prices in the secondary market resale, let companies export export quota system, improving the efficiency of the mind is largely in vain. In the textile quota bidding, we have seen the speculators who will be limited quota textile exports Scoop out the quota level, how high the market price; if the coke is also implemented in the same way the quota, we will encounter the same problem. Of course, in normal circumstances, the market mechanism will be bound by acts of speculators, so that the quota price is too high return. In the textile quota market, we see men and women cotton T-shirt exports to the U.S. quota in the beginning of up to $ 9 price / dozen companies as more than the capacity, to the lowest sale price in late May, there are only 0.7 to 0.8 U.S. dollars / dozen; lost Euro 4 Class T-shirt quota price by the end of April, or 2.5 U.S. dollars / dozen, in late May and only 0.7 U.S. dollars / dozen. [2] However, this situation is difficult to completely copy the coke market, the price is too high because the quotas, textile Clothing manufacturers can reduce production or even suspension, led return to the quota price; but coke ovens can not turn off, or we need to set aside, so the quota of coke in the ability of speculators blackmail companies speculators in the textile quotas.
any control, any public authority are have the possibility of corruption, but the simple deregulation, regulatory reform, or not well-thought instead of the negative effects may be greater, we can not without caution. Of course, in any case improve the coke quota system, are necessary to strengthen and clean government essential.
background in the broader investigation, we can also see this problem more far-reaching significance. in addressing the increasing trade friction, the trading partners may require us to export restrictions, then , negotiation and consultation with trading partners in the solution, when we should seek to persuade each other and our common solutions to minimize the risks of corruption in it? After all, in the world, international trade is plagued by corruption, not only transnational bribery (transnational bribery) is the international trade community has long raised the issue, the United States, also by Anne. Krueger in a policy of protectionism in international trade, the causes of the paper Trade schools also rent-seeking theory of public choice school of two schools side by side. in China practice, the media pointed out that the investigation of corruption cases in China, 64% and international trade and foreign-related, although this figure may not be accurate, but early former deputy director of Beijing Municipal People's Congress Hong Kong Ren Tieying accepting huge bribes case, until brought to light in recent years, Lucent and other cases have been continuously sounded a warning to us. Even China's current turmoil in the anti-commercial bribery, root of the matter, also results from Nankai University Professor Cheng Baoku realizing the US-owned company in Tianjin Depp articles written by bribery case. If we only consider the requirements to meet each other, reducing friction, the solution may be to increase the risk of corruption, it may not be able to achieve the original purpose.
[1] > [3] In 1976, Chairman of the Senate Subcommittee on Transnational Corporations, Democrats discovered Lockheed Church 1970m1975 years to kickbacks, political donations, grants and other forms of a total of 202 million to overseas bribery.
Appendix: report Original
scandal hurt the business and government, Shanxi Coke quota Woan exposure
Central Discipline Inspection Commission, Shanxi, coke quota major Coke and more people nationwide quota Woan exposed tip of the iceberg.
fact several months, often in front of Taiyuan City People's Procuratorate, Passengers big mouth glimpses of what happened, but so far, his is not clear details are a closely guarded secret, almost all the people are about Ministry of Commerce of Shanxi Province, a department or bureau level cadres to do the business of coke export quotas for corporate executives, sources said as many as hundreds of people involved.
Bit for Discipline Inspection Committee of Shanxi Province (Shanxi Discipline) laments source within the system.
an accidental fuse
all cattle from the Shanxi Coke Group Chairman Newman was , attitude is extremely hard, on his own account of things that do not want to do any, a Denial of attitude, this Commission for Discipline Inspection of the comrades began a large area of investigation. Xinmin cattle have been the case did not involve illegal quota of coke and corruption, Provincial Commission for Discipline Inspection in the investigation, but found the process of reselling quota on coke significant clues and corruption. br> 2005 in the second half, was formally arrested Xinmin cattle, the main crime is suspected of accepting bribes and huge amount of property of unknown origin, is currently detained more than 100 kilometers away from Taiyuan, Yangquan outside the detention center. cattle Newman of the former vice president of Shanxi Coal Transportation and Marketing Corporation In 2002, after the establishment of Shanxi Coke Group as its chairman for the department level cadres. Shanxi Coke Group, a source, cattle Xinmin in the company, at the helm for a very strong man, a character quite stubborn, but he also recognition of the Shanxi coke industry bigwigs , do not match, do not explain, nor with the judicial investigation and evidence gathering, they were investigated further investigation, the more search results more problems, cattle Newman's two sons and his son have been in the Commission for Discipline Inspection of the survey involved in.. Ping, which involved a coke quota corruption. Before the Spring Festival this year, Fan Ping Commission for Discipline Inspection in Shanxi Province, use of its coke export quota in the hands of 216 million yuan of bribes .6 13, Taiyuan's Procuratorate prosecuted by the Ping Fan reselling quota case in Taiyuan Intermediate People's Court trial. as the case of large, discipline inspection departments and court leaders also present in court as observers. Fan Ping, female, 47 years old, graduate degree, before the incident, Department of Shanxi Coke Group Managing Director, union president, and chairman of the International Trade Group and general manager.
cattle by Newman and Ping Fan Shanxi Coke Group, serving the former coke in Shanxi Coal Transportation and Marketing Corporation, the company, the provincial Waimao Ting coke export service center and three other units in 2002 merger of both companies, but also on behalf of the Government to exercise management functions in some industries. Shanxi All provincial and export of coke out of province, must be issued by the Group related to permits and bills, and on behalf of the government extracted about 30 yuan per ton, energy funds and service fees, management fees two charges.
although so far not yet produced a ton of coke, but the group is in the Shanxi coke industry can do anything they want the boss, the hands of the Ministry of Commerce has also allocated a quota of coke. Shanxi Coke Association affiliated to the group below, Association secretary-general of the group serve as a vice president.
the Commission for Discipline Inspection, said informed sources within the system, cattle do so , the more search results more problems.
Although cattle Newman's attorney, Shanxi Li Fei, director of the Yellow River Law Firm are certain that the current master of the situation, cattle and quota Xinmin not directly related to the case, but corruption and huge assets of unknown origin. But Coke pulled the quota case this thread, and the officers involved in more and more companies are involved in the spread.
from Shanxi to Beijing
quota case and found the case not only for the spread of the spread down to business and find a lot of clues and corruption directed at the Ministry of Commerce a number of relevant personnel. , and involves a trend of expansion, then, Shanxi Province, a major problem Discipline feeling, the case directly to the quota of coke to the Central Discipline Inspection Committee report (Central Commission for Discipline Inspection).
quota of the Central Commission for Discipline Inspection of coke formed a special investigation team series of cases, CPC Central Committee Secretariat of the CPC Central Discipline Inspection Committee, the central commercial bribery Yong himself as the group leader of the team leader.
Central Discipline Inspection Commission intervention, companies and officials involved more involved in, followed by the Ministry of Commerce Foreign Trade Division Director Dan Meng industrial exports were arrested, an official of the National R & S Office is also involved in the case were arrested. At the same time there is a Ministry of Commerce Secretaries of cadres and several other officials sacked.
learned that Dan Meng Central Discipline Inspection Commission before the Spring Festival this year Discipline Inspection Commission and sent to the personal supervision of Taiyuan. This year the Spring Festival, Fan Ping incident, Commission for Discipline Inspection and the prosecution of the Anti-Corruption Bureau deeper investigation, and further identified in a number of enterprises involved in Shanxi Province, and officials.
which is more concern is the deputy general manager of Shanxi Coking Coal Group, Shanxi Coking Coal Group International Development Limited Chairman and General Manager Yang Xue-Quan, 3,4 months of this year, Yang Xue, Taiyuan judiciary have all been arrested, together with the Deputy level cadres were also arrested Coke export department of the company responsible Gao Jie. At present, Taiyuan, Shanxi coke nine International Trade Building, the international logistics company deserted Group, Shanxi Coking Coal Group International Development Limited head office in Beijing has been transferred back to Taiyuan. It a Beijing company to do business reselling quota official told reporters that they and Shanxi Coking Coal Group International Development Limited's office in Beijing who are familiar.
Shanxi Coking Coal Group, Department of International Development Co., Ltd. Xishan Coal and Electricity Group into the former export company, last year, total exports of 1.8 million. its shareholders including the Meijin Energy Group, Sunshine Coking Group, the industry coking Group, five coal companies Lin, Tung Fai Coking Group and several private Shanxi coke export large.
the same time, to take coercive measures by the judiciary was also head of Shanxi Song Jianping ceremony commerce company. It is understood the 40-year-old on the coke side exit the industry with big characters, because bribery was to buy a quota arrested. The name of the company hung on Commerce, Shanxi Province, import and export volume has reached more than $ 50,000,000.
not small, a lot of coke production in Shanxi coke export enterprises and enterprises are involved in it. According to Shanxi has rich experience in handling cases of an estimate, the official convicted to life imprisonment or the death penalty is likely.
Commission for Discipline Inspection System, a source said the central government is very concerned about the case and a resolute attitude, as long as with the case involved officials will be dealt with, level leaders are concerned about is the Central Commission for Discipline supervise the handling of major cases this year. established within the coal industry have set off a purge of the storm. Recently, the Taiyuan City area 8 in 6 districts over the Secretary of coal pipe was arrested because of the city during the coal exploration mapping survey and mapping firms to accept bribes and kickbacks . The Shanxi Provincial Department of Commerce was held June 6 and again in 11 cities across the province and Tingzhi Business Bureau and the organs of all the leaders of the unit staff meetings to further clarify the business system in Shanxi Province's four key commercial bribery, the first is the import and export quotas, licenses and management approval.
case
Fan Ping Ping Fan and Shanxi Coke Group is the case in this series Woan typical case. Fan Ping reselling process twice to get the quota substantial rebates .2004 April, Shanxi Coke Group International Trade Co., Ltd. (international trading company) get 2 million tons of coke export quota, the United Shanxi Wenfeng Coking Plant Fenyang City (March 2005 changed its name to Shanxi Wenfeng Coking Co., Ltd., hereinafter referred to Wenfeng company) sales charge Kongmou that will get a international trading company when he was vice chairman, general manager of Ping Fan 2 million tons of coke export agent negotiation matters. Both sides agreed that the company Wenfeng International trading company paid $ 182 per ton fee, equivalent to 30.066 million yuan, and the other 200 million .2004 Fu Fanping commission April 16, Wenfeng International Trade Company and signed by 2 million tons of coke export agency agreement .4 19, Wenfeng's hole will be 30.066 million yuan Yan agency fee paid to the international trading company accounts, Fan Ping 200 million to the commission, according Hanson prior agreement from the Mining Co., Ltd. Tianjin Development Zone into the range specified in Jin Ping West Rail Construction Company at the first construction account. Fan Ping appropriation to this section.
2005 年 10 months, the international trading company and receive 2 million tons of coke export quotas. was already the scope of international trade Ping, chairman of the company's Kongmou Wenfeng negotiate with the 2 million tons of coke export business convention: Wenfeng International Trade Company Company paid $ 9 service charge per ton, and the other paid $ 1 per ton of Ping Fan commission .2005 October 12, Wenfeng International Trade Company and the Company entered into purchase and sale agreement of 2 million tons of coke .2005 October 20, Kongmou phone call to take 16 million commission Ping Fan, Fan Ping, to make Panmou International Trade Building, lobby on behalf of the hands from the hole back 160,000 yuan Yan and let Panyu on behalf of their custody.
public prosecutor that the defendant received bribes Ping Fan behavior has violated the provisions of the Criminal Law, crime facts are clear, there is ample evidence, should be held criminally responsible for taking bribes.
but is interesting, Fan Ping, attorney, Shanxi University School of Law Dean Fan Ping Wang Jijun done for the defense of not guilty, and his reason is that This is the normal commission, Provincial Coke Group Co., Ltd International Trade coke exports in the agency business, there is a hard fact of reselling quota. In this case, Shanxi coke and Wenfeng Group only Joint coking plant sat in a project to increase the resale of more than 3,000 million .2004 revenue quota in May, the National Development and Reform Commission, Ministry of Finance, the Ministry of Commerce, Ministry of Land Resources, Business Administration, Taxation, Environmental Protection Administration, China Banking Regulatory Commission, State Electricity Regulatory Commission and other ministries on the release of ten Opinions coke industry norms, industry, there is a story well known, one of Shanxi's coke business owners, to the Ministry of Commerce to run the quota given to the direct opening of BMW car officials who help.
around to find the Ministry of Commerce officials in Shanxi Provincial Department of Commerce Office of quotas, we do not know to have come back. Some transfers of quotas, about 200 million tons. many companies is to fight through some very means this part of the quota. Summing up all the news, this part of the to 200 tons, can be accounted for about one-tenth of the total quota, and that this part of the gray area has become a high incidence of corruption.
Ministry of Commerce of the total quota of coke per year is relatively fixed, 03 coke reached a total of 14.7 million tons, in 2004 13 million tons, 14 million tons in 2005. within the Ministry of Commerce issued the quota volume is twice the annual coke export quota allocation. sometimes be added.
a claim to Beijing got the quota directly from the Ministry of Commerce, who told reporters that he as the Director of the Ministry of Commerce has a certain personal relationship, you can still get coke export quota, the current market price $ 13 per ton.
Do you want to rest assured that I can take you to the Ministry of Commerce talk, without an export license, and I also helped to do. have to find a company affiliated. I was an intermediary will still be friends and talk about the Ministry of Commerce. In addition to at least 10 million tons quota start. to the quota if the quota of the company to buy a quota is more convenient. Another way to get that part from the Ministry of Commerce of quota transfers, this thing is not necessarily beautifully shy, the first time to wait, because the quotas are based on actual transfers given situation, sometimes a number, sometimes not. Also in the relationship between the Ministry of Commerce is also hard not a critical factor in the hard, can not find the right people are critical. Therefore, if energy consumption can afford time to go this road. 90% quota should be to help people out, black go again. Element!
quota of coke inside the scarce resources there is another form of transaction in the industry more widely, and that is rampant within the industry reselling quota issue.
export enterprises in Shanxi, a person in charge of coke Introduction Road, Shanxi coking enterprises in the export of so many, that many of them are no quotas, no export license. then only from other companies to buy back quota.
the industry is a relatively safe thing. people greedy, stretched to the following business too long, so things were not done. Some individuals also pay the price to buy quota to the following enterprises to reach out rebate. brokers to reporters about the process of reselling quota: If you want to do business he did not export quota of coke, the first foreign companies to find their first single, find a buyer, and then find that companies are willing to transfer the export quota. these things done, Coke enterprises, foreign buyers, with a quota of a joint enterprise tripartite agreement signed, while coke enterprises with foreign and quotas were the companies signed a confidentiality agreement. This agreement can be signed for two years to five months. coke enterprises first found to be responsible for the coke wagon shipped to Tianjin Port, so that a quota of enterprises as agents of this coke enterprises to use their hands to complete the coke export quota.
final settlement with the agents directly to foreign buyers, agents Business re-settlement and coke enterprises, in addition to agency fees, the cost of the quota, the other will hit the coke business. phenomenon. even if some companies have staff to do so, his company will not tolerate, it is the industry's rules. the sky was shrouded in smoke gray, close to the street outside was covered with layers of ash, from time to time a vehicle passing truck loaded with coke, stirring up waves of dust. It is understood that this and Jiexiu City large and small coal town does not exist on Homestead coke more than 100 enterprises, which have larger Shanxi Meijin Group and Aetna shares of listed companies.
Jiexiu City Office of the Secretary-General told reporters that at present the coke enterprises are struggling on the edge of loss, Jiexiu City has cut the number of small coke enterprises, now surviving in the maintenance of most of coking enterprises, almost all started less than most companies 50%.
coke in Shanxi Province, according to Association, a source, since last year, the sharp decline in exports of coke in Shanxi, and enterprises in general bad, and had focused on investment in production capacity began to release an annual capacity of 05 grew 25% to 30%, at the same time, Shanxi The coke consumption did not increase, due to the implementation of the national steel industry policy, the province's 200 to 300 cubic meter blast furnace steel-making was also a lot of close, Shanxi coke excess exception. another blow from the price, coal prices continue to rise, the decline in the price of coke, coke CIF Guangzhou, south, have recently ex-factory price was flat out and Shanxi, Shanxi coke enterprises worse.
then exported into the dream of many companies to save their own business. Shanxi Province, a Coke export trading company in the middle laying bare the secrets of the industry. He told reporters that the State Customs Protection of coke export price of a current record in the customs protection of the offshore minimum price of 155 dollars, many companies offer all the coke export 160 U.S. dollars. The price itself higher than the domestic price of coke.
Buyers should be much faster, generally two weeks or one month of funds will be able to arrive. another third-party bank credit and guarantees, the relative risks and do the domestic market to be small.
back to look at the domestic market, as many domestic steel mills can not guarantee its effectiveness, so coke enterprises arrears owed more common phenomenon. are inadequate, especially small businesses, their liquidity, loans from banks is difficult, the upstream direct impact on arrears buyers coke enterprises to survive. that the coke export quota was less than export demand, export quota speculation is very high. For example, prices of export quotas in 2004, even more than the 200 U.S. dollars / ton at a time when the export price of metallurgical coke is 450 U.S. dollars / ton.
around the Spring Festival this year, Taiyuan, Houma, Yuncheng and other places in conjunction with the coke enterprises Industry Association, had problems with the increase in quota negotiations with the Shanxi Provincial Department of Commerce, Chamber of Commerce quickly report related to the Shanxi Province, the province to the business Department report. then to send personnel to the Ministry of Commerce of Shanxi to investigate the problem of excess production capacity, reduce inventory to find ways to increase exports. But can not wait for Shanxi province, Shanxi coke merchants, directly bypassing the government and associations, some of the Ministry of Commerce to conduct personal bribes to get export quotas, the Ministry of Commerce said a person, through the relevant delivery note leading to the phenomenon of so many approved quota.
He said the Ministry of Commerce back in 2004 to have things checked reselling quota, requiring businesses and individuals may not be sold coke export quota license, and set up special telephone. but not thorough investigation of the role.
who introduced an internal Ministry of Commerce, the annual quota of enterprise applications in November, about the end points to the enterprise. in the past years, the quota allocation is basically planned and unplanned business enterprises in two parts, the unplanned part of the enterprise is used to adjust the.
Shanxi Province Department of Commerce Director who is familiar with foreign trade, told reporters, location around the coke export enterprises shall apply for the provincial commerce department. the provincial commerce department under the qualification standards for coke export enterprises, application of the region's companies export quota of coke qualification review, and in November 20, 2004 to present areas eligible list of export enterprises, the written comments submitted to the Ministry of Commerce of first instance (with business-related materials), copied to the CCCMC China. Department of Commerce, business and trade enterprises to meet the qualification standards Ah yo.
Chinese Ministry of Commerce of Metals Minerals & Chemicals Import and Export Chamber of Commerce, China Coking Industry Association, the coke export quota of enterprise applications for the qualifications for review. CCCMC from China After review of the qualified local coke coke export enterprises and export enterprises in the central management summary of recommendations made and on November 30, 2004 reported to the Ministry of Commerce. According to the Chinese Ministry of Commerce of the review CCCMC views on all parts of the declared coke export enterprise eligible for validation, and to be publicized, pursuant to which payment of the coke export quota.
but a Deputy Director of Shanxi Provincial Department of Commerce also recognized that the Ministry of Commerce Which companies get for the number of quota, and now there is no explicit requirements, generally within the control according to the situation the Ministry of Commerce.
coke export quota for the various problems arise, a coke export enterprises in Shanxi Province, according to people present to discuss how the industry is to change the current quota allocation, according to his introduction is likely to take the national allocation of the tender.
Yang said China Coking Industry Association, we have a letter to the Commerce Department's report on quota reform coke, it is recommended qualifications of export enterprises or trading companies approach the implementation of the tender bid export quotas allocated by the government departments and related associations, chambers of commerce management committee composed of the tender bid, I hope, like the textile industry as a pilot tender or auction.
Now that so many loopholes in the quota allocation system, easy to breed corruption. too opaque, unfair distribution of the master the power of life and death, right there is no effective supervision, the quota can be assigned to too few qualified enterprises.
an industry sources, on coke exports, the state must be controlled, the future will not increase, only decrease. because the coking industry pollution is serious, many European countries has been discontinued, but we can not value left to others, the pollution left themselves, but we have to keep coke in the international market right to speak, this is our only basis for the right to speak with coke energy products, if the hole opened, and we are negotiating other imported energy products, there is no reasonable the bargaining power of the.
CCCMC Ministry of metals and minerals commodities, said Guo of China, have not yet heard of quota system to do coke, do not notify the.
his view, the coke and textile not the same, is unlikely to take the tender approach, although the quota is expedient, but can think of is currently the best solution. of the international coke coke exports account for 70% of the volume, hit the market after the opening of too much was. But under the current system it is possible to adjust, such as in a tilted more to the quota of production enterprises, a large supporting the superior angle to help avoid the agent and by proxy, so that trading companies phased out.
(newspaper Reporter Liu Changjie also contributed to this article)

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