Changsha’s second-hand construction machinery “going overseas” has made new breakthroughs. On March 10, 216 second-hand construction machinery equipment departed from Shanhe Intelligent Industrial City and will be exported to dozens of countries and regions. Liao Guanghui, full-time deputy director of the Hunan Free Trade Office, and Qiu Jixing, member of the Standing Committee of the Municipal Party Committee and secretary of the Party Working Committee of the Changsha Free Trade Zone, attended the departure ceremony.

Sold to dozens of countries and regions with a total value of 317 million yuan

The centralized export shipment ceremony for used engineering machinery equipment from the Changsha section of the China (Hunan) Pilot Free Trade Zone was hosted by the Changsha Section Management Committee of the Free Trade Zone.

The second-hand construction machinery shipped overseas this time comes from companies such as Sany Group, Zoomlion, Shanhe Intelligent, and China Railway Construction Heavy Industry, covering twelve categories such as rotary drilling rigs, excavators, and pump trucks, with a total value of 317 million yuan. The equipment will be shipped from ports such as Shanghai, Taicang, Tianjin, Qinzhou, and Nansha, and sold to dozens of countries and regions in Southeast Asia, Africa, Central Asia, the Middle East, Latin America, Europe and the United States. The event attracted more than 20 companies including host companies and traders to participate, and will contribute “Hunan brand” and “Hunan power” to the vigorous development of the global second-hand construction machinery market and the economic construction of related countries.

“This time, our company has 8 refurbished and remanufactured second-hand equipment on site, with a value of RMB 6 million, which will be exported to countries such as Egypt and Senegal in Africa and Peru in South America.” In the view of Tan Qing, head of Hunan Huirunda Import and Export Co., Ltd., the export of second-hand equipment is a good measure for the domestic market to turn old equipment into treasure and earn foreign exchange through exports, and will also greatly promote the export of host brands.

Sunward Intelligent mainly sells second-hand rotary drilling rigs and excavators with a value of about 15 million yuan, mainly exported to Africa and Southeast Asia. Peng Ying, brand management director of Sunward Intelligent, said that the company has established a special second-hand equipment remanufacturing plant to refurbish and maintain the equipment and provide it to the “Belt and Road” countries with better cost-effectiveness.

It is reported that the performance of refurbished second-hand construction machinery reaches 70% to 90% of that of new machines, while the price is only 30% to 40% of that of new machines. This makes the second-hand construction machinery equipment in the Changsha area extremely competitive in the international market.

Nearly 20 new export trial orders from enterprises

At present, the export of second-hand construction machinery in my country generally faces problems such as lack of evaluation standards, unclear tax rules, and difficulties in industry financing, which hinders the domestic second-hand equipment from entering the overseas market. Promoting the export of second-hand construction machinery is of great significance to promoting the transformation and upgrading of the manufacturing industry, promoting Chinese brands to “go global”, and opening up new tracks for economic development.

The Changsha area of ​​the Free Trade Zone is the only region in the world with 4 engineering equipment manufacturing companies selected into the world’s top 50 list. The total scale has ranked first in the country for 11 consecutive years. In 2022, the sales volume accounted for 14.35% of the top 50, exceeding the total of the other 7 selected domestic companies. The reform of the export of second-hand engineering machinery equipment has become a key institutional innovation topic in the Changsha area of ​​the Free Trade Zone.

 In the early stage, the Changsha section of the Free Trade Zone explored solutions to difficult and blocked issues such as assessment and pricing standards, tax management, and customs clearance facilitation through a series of measures such as launching trial orders, establishing industry alliances, and formulating standard systems, and achieved phased results.

“The Changsha area has introduced a third-party appraisal agency to objectively and fairly price second-hand equipment, which provides a guarantee for the subsequent issuance of invoices and certificates of origin. With the certificate of origin issued by the customs, the import tariff can be reduced by 8% to 20% for the importer, thereby improving the competitiveness of second-hand equipment exports.” Tan Qing, person in charge of Hunan Huirunda Import and Export Co., Ltd., introduced that since the trial order in October last year, the company has exported nearly 30 second-hand construction machinery with a value of more than 24 million yuan.

From October to December last year, Changsha exported second-hand construction machinery worth 178 million yuan to 15 countries including India, Vietnam, and Uzbekistan. This year, according to the actual demands of enterprises, nearly 20 new enterprises have gathered in Changsha to carry out trial export orders for second-hand equipment.

Build it into a 100 billion-level industry

“The Changsha section of the Free Trade Zone will focus on the development needs of the industry and the demands of market entities, adhere to the working idea of ​​’building platforms, optimizing processes, establishing systems, and setting standards’, and strive to solve key pain points such as unclear export tariffs, lack of standards, and cancellation of accounts in other places for used construction machinery.” said Tan Haoran, deputy secretary of the Party Working Committee and director of the Management Committee of the Changsha section of the Free Trade Zone.

In the next step, the Changsha section of the Free Trade Zone will strive to build Hunan into a world-renowned and nationally leading construction machinery aftermarket industry distribution center by creating a process-based public service platform, a concentrated second-hand equipment trading center, and a large-scale remanufacturing export base. It will gradually achieve the strategic goal of building the export of second-hand construction machinery into a 100 billion yuan industry and contribute the “Changsha experience” to the national export of second-hand construction machinery.