The U.S. Legislation Of Free Trade Ports/Zones And Its Implications

The U.S.foreign trade zones(FTZs)have made great achievements in promoting the international competitiveness of U.S.enterprises,domestic employment,foreign trade and investment.There would not have been the achievements if there had not been the strong support from US legislation of FTZs.From the perspective of the structure of the legislation,the U.S.has developed a complete,well-structured and harmonious legal system.The Foreign Trade Zone Act is the Basic Law of the legislation of U.S.FTZs,which stipulates the legal status of the FTZs and the basic principles of administration and operation.It has played an important role in maintaining the stability and coordination of the legislation.The Foreign Trade Zone Act itself does not involve specific rules about administration and operation.Instead,the authority to make these rules is granted to Foreign Trade Zone Board,which is the national supervisor of the US FTZs.The Foreign Trade Zone Act,together with the Foreign Trade Zone Regulation which provides specific rules for administration and operation and the Customs and Border Protection Agency Regulation which provides special rules for customs supervision constitutes the one body two wings of the legislation.They are the concentrated reflection of federal legislation of FTZs.States has retained power to some extent.Their participation will facilitate adaption of the legislation to local needs,thus improving the flexibility and adaptability of the legislation.In addition to the central and local governments,market entities can also participate in the formulation of the rules by proposing Zone Schedule or legislative opinions.It is fair to say that the legislation has achieved a good balance between central power and local power,government power and market power as well as flexibility and stability.From the perspective of the content,The U.S.has innovated in the administrative mechanism,establishment of FTZs,favorable policies and so on,which can reveal the country’s dedication to promote the interests of market entities.The US successful FTZ program shows that the success of FTZs is based on the support of legislation and so is that of our free trade ports.Presently,China’s legislation of pilot free trade zone has many defects such as low legal rank,improper distribution of power,doubtful legitimacy,fragmentation,hollowing out of the law and so on.With all the defects it is inappropriate for the legislation of free trade ports to repeat the mistakes.We can draw lessons from the legislation of pilot free trade zone and US FTZ legislation when legislating for the free trade port.First of all,the National People’s Congress and its Standing Committee should make basic law of free trade port.Second,it is necessary to clarify the legal rank of the laws and regulations.Thirdly,the central authority should actively exercise its legislative power.Local authorities should be authorized to engage in the legislation but the central authority should regulate and restrict local authorities.Fourthly,to improve the current system of delegated legislation.It is inappropriate for the delegated legislation to involve the matters specified by Article 8 of the Legislative Law and we had better discard the current dual delegation system whose nature is transfer of authorization.To improve the content is as important as to improve the structure.Basic law is supposed to clarify the principles of the law,which can instruct the delegated legislation and local legislation.It is supposed to determine the administration bodies and allocate powers between them properly.When allocating powers,we had better strengthen the power of central authority to implement uniform administration,especially when it comes to the establishment of free trade ports.Finally,China should continue to explore facilitation and favorable policies.