Shanghai Free Trade Zone hosts first auction
上海自由贸易区举行首次拍卖会

Shanghai’s new Free Trade Zone hosted its first auction on Sunday, with bidders spending more than 8 million yuan on dozens of clocks, watches and pieces of jewellery. But buyers and sellers say they would like to see some tax rules relaxed.

Bidders bought 73 of the 90 items on sale, with over 70% of the goods coming from overseas.

"We are here just to take a look. We haven’t known much about it. "

"This is the first auction in the Free Trade Zone. There are more items at auctions outside the zone."

No taxes or tariffs will be charged on the items as long as they stay in the Free Trade Zone. If they are moved to other parts of the mainland, buyers will have to pay a tariff ranging from 6 to 14% and a 17% value-added tax. Some bidders would like to see those charges dropped.

"It’s just the beginning and the detailed policy has not been published. I hope all the taxes can be exempted before we take the items out of the zone. "

Organizers of the sale say they are also pushing for change.

Hu Huanzong, Auction Organizer, said, "It is the national authorities who sets the tax policy. We are also reporting this issue to officials. We hope it can be changed in the future."

The zone will host at least one auction a month starting next year.