Let Juno Logistics China assist you with Chinese duties and tax laws, value-added tax drawbacks and arrangement of pick up and delivery in to the FTZ’s and the cargo logistics parks.
What is a Free Trade Zone?
FTZ’s are geographically defined areas that permit a wide range of business activity such as warehousing, manufacturing, foreign exchange transactions, trading and export processing, freight classification, parts loading, storing, packing, branding, trading and warehousing operations. Various incentives include exemption from customs duty and value-added tax (VAT), liberal foreign exchange rules, and the absence of bond requirements for imports within the zone.
The advantages of logistics business in free trade zones are: bonded duty, combination of warehousing and transportation, simple procedures, low warehousing cost and direct check of goods. It is more convenient for sampling, order making, distribution, largely shortening the distance between Chinese market and world market, thus quickening the cash flow. China has many types of zones and bonded areas (both of which offer relaxed import restrictions) at the state, provincial, city, and district level. Within these zones, China is a host to the development of the top industries in the world today (see China Industrial Map below):
IT Industry - Development base for semi-conductor material in China; R&D and processing base for mobile communication products, computer and peripheral products, parts & components
Energy and Material Industry - Development of heavy industries of electricity, steel, chemistry and light industry
Machinery Industry - Development of automobile, plastic injection machinery, and sewing machine production industry
Plastic Industry - Ningbo is the areas most developed in plastic injection and moulds processing
Biotech-Pharmacy - One of the important R&D and production bases of bio-pharmaceutical industry
Textile Industry - An important textile and garment production base
Juno Logistics China has office locations that are strategically located at all major FTZ’s. These areas represent significant importance in world trade. FTZ’s of noteworthy mention and the significance of their locations include:
Shanghai - About 300 of the world's Top 500 enterprises have invested in Shanghai, such as Delphi, GE, Mitsubishi, Itochu, Siemens, Hitachi and Carrefour. Shanghai has China's largest container port and became the world’s largest cargo port in 2005, which handled more than 18 million TEU’s. In addition, it hosts the largest amount of airfreight traffic via its two international airports, Pudong and Hongqiao. Shanghai plays a leading role in the country's heavy industries. Shanghai is a national leader in the production of chemical fibers, ethylene, cars, power generating equipment and personal computers etc. The six key industries of Shanghai are automobiles, petrochemical and fine chemical, fine steel and iron, equipment complex, biomedicine, and electronic information, of which industries of electronic information, equipment complex and fine steel and iron grew much faster than others. Shanghai Waigaoqiao FTZ is the country's biggest and oldest free trade zone. It incorporates various functions including free trade, export processing, logistics warehousing and bonded commodities' displaying.
Guangzhou - Guangzhou Development District (GDD) is the main economic growth area in Guangzhou and the main force promoting industrialization and urbanization of Guangzhou's eastern area. From here, the Pearl River Delta is a 1.5 hour drive. It is about 65 nautical miles away from Hong Kong, taking 1 hour by ship. The competitive advantages of its location is simple and efficient administrative structure; multi-preferential policies; availability to all different investment modes and projects; a local government implemented administration system; an excellent infrastructure; advantageous geographic location. Guangzhou FTZ is equipped with facilities such as customs clearance buildings, chartered wharfs, bonded warehouses, open-air storage yards and cargo inspection yards. Guangzhou FTZ encourages the development of industries such as international trade, bonded logistics, processing & manufacturing.
Dalian - Dalian is an important port, industrial & trade city in Northeastern China. It is one of the most open and economically dynamic cities in China. Dalian serves as the Sea-Air gateway to southern China, eastern China and the entire world for northeast China. Dalian port is one of the most ideal ports to transport cargos to the Middle East, South Asia, North America and Europe. It has kept trade contact with more than 300 ports allocated in 160 countries and regions. The cargo handled by Dalian port is over 150 million tons per year. Dalian Port has been positioned as the important international shipping hub and international logistics center. Dalian FTZ is one of the most open economic areas in China. Though located inside China, Dalian FTZ is considered to be outside the Chinese Customs territory. Thus, any goods that enter China through the zone are not assessed Customs duties until after they leave the zone for China consumption. Companies inside the zone benefit from simplified customs procedures, liberal foreign exchange privileges and absence of export quotas and other requirements on imports. Companies registered with the zone can do such businesses as trading, processing, warehousing and distribution and commercial services.
Ningbo - Ningbo is an important international port city in eastern China and the center of southern Yangtze River Delta and one of the best areas for investment in China’s mainland. Ningbo has long been known for its developed textile, light machinery, and processing industry. With the development of petrochemicals, steel, electricity, paper production, and auto industry, reinforced by the fast-growing high-tech industry of electronic information, bio-pharmaceutical, and new materials, Ningbo has gradually formed a business value chain that spans almost all industries, which lays solid foundation for Ningbo’s economy and its sustainable development. Ningbo FTZ operates interactively with one of China’s deep-water ports, Beilun Port, which has direct voyage to 560 ports in more than 90 countries and territories. The handling capacity of annual containers has amounted to 2.77 million TEU. Ningbo FTZ has main economic functions of export processing, international trade, bonded logistics and commodity exhibition and enjoys preferential policies of exemption from duty, bonded duty and licenses. Thus, Ningbo FTZ has become an important center of high-tech industry and import & export logistics.
Other Chinese Free Trade Zones Include:
Fujian
Fuzhou FTZ
Xiamen Xiangyu FTZ (Tel: 0592-603-6831)
Guangdong
Futian FTZ (Shenzhen)
Guangzhou FTZ
Shantou FTZ
Shatoujiao FTZ (Shenzhen)
Yantiangang FTZ (Shenzhen)
Zhuhai FTZ
Hainan
Haikou FTZ
Jiangsu
Zhangjiagang FTZ
Liaoning
Dalian FTZ
Shandong
Qingdao FTZ
Shanghai
Waigaoqiao FTZ
Tianjin
Tianjin Port FTZ
Zhejiang
Ningbo FTZ
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