This aerial photo taken on Sept. 10, 2023 shows a view of Zhangjiang area of the China (Shanghai) Pilot Free Trade Zone in east China's Shanghai. (Xinhua/Fang Zhe)

Offshore trade in the China (Shanghai) Pilot Free Trade Zone and the zone's Lingang new area will be exempt from stamp tax in a trial that aims to boost the development of offshore trade.

The new policy, effective for the April 1, 2024 to March 31, 2025 period, will benefit entities registered in the zone that conduct offshore trade business, according to an announcement jointly issued by the Ministry of Finance and the State Taxation Administration.

Offshore trade, or documentation processing trade, refers to a trade model in which the goods are transferred directly from the exporting country to the importing country without entering the border of a middle country where contracts, payments, logistics, insurances, financial arrangements, as well as other trading documentations are processed.