Bonded logistics park

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A bonded logistics park is a type of special economic zone. Trade arrangements are similar to that of a bonded warehouse but over a specific geographic area. Sometimes with international port capabilities. [1] Goods may be stored, manipulated, or undergo manufacturing operations without payment of duty.

A special economic zone (SEZ) is an area in which the business and trade laws are different from the rest of the country. SEZs are located within a country's national borders, and their aims include increased trade balance, employment, increased investment, job creation and effective administration. To encourage businesses to set up in the zone, financial policies are introduced. These policies typically encompass investing, taxation, trading, quotas, customs and labour regulations. Additionally, companies may be offered tax holidays, where upon establishing themselves in a zone, they are granted a period of lower taxation.

A bonded warehouse, or bond, is a building or other secured area in which dutiable goods may be stored, manipulated, or undergo manufacturing operations without payment of duty. It may be managed by the state or by private enterprise. In the latter case a customs bond must be posted with the government. This system exists in all developed countries of the world.

In economics, a duty is a kind of tax levied by a state. It is often associated with customs, in which context they are also known as tariffs or dues. The term is often used to describe a tax on certain items purchased abroad. Properly, a duty differs from a tax in being levied on specific commodities, financial transactions, estates, etc. rather than on individuals. Duties may be import duties, excise duties, stamp duties, death or succession duties, etc.; but not such direct impositions as personal income taxes.

Contents

China

China’s bonded logistic parks have similar rules to free-trade zones (another specific type of special economic zone) except for export VAT refund. Export VAT refund is eligible for a Chinese company once their goods enter the park. [2]

A free-trade zone (FTZ) is a class of special economic zone. It is a geographic area where goods may be landed, stored, handled, manufactured or reconfigured and re-exported under specific customs regulation and generally not subject to customs duty. Free trade zones are generally organized around major seaports, international airports, and national frontiers—areas with many geographic advantages for trade.

Locations

Jiangsu Province of China

Jiangsu is an eastern-central coastal province of the People's Republic of China. It is one of the leading provinces in finance, education, technology, and tourism, with its capital in Nanjing. Jiangsu is the third smallest, but the fifth most populous and the most densely populated of the 23 provinces of the People's Republic of China. Jiangsu has the highest GDP per capita of Chinese provinces and second-highest GDP of Chinese provinces, after Guangdong. Jiangsu borders Shandong in the north, Anhui to the west, and Zhejiang and Shanghai to the south. Jiangsu has a coastline of over 1,000 kilometres (620 mi) along the Yellow Sea, and the Yangtze River passes through the southern part of the province.

Guangdong Most populous province of the Peoples Republic of China

Guangdong is a province in South China, on the South China Sea coast. Its capital and largest city is Guangzhou. Guangdong surpassed Henan and Shandong to become the most populous province in China in January 2005, registering 79.1 million permanent residents and 31 million migrants who lived in the province for at least six months of the year; the total population was 104,303,132 in the 2010 census, accounting for 7.79 percent of Mainland China's population. This makes it the most populous first-level administrative subdivision of any country outside of South Asia, as its population is surpassed only by those of the Pakistani province of Punjab and the Indian states of Bihar, Maharashtra and Uttar Pradesh.

See also

Entrepôt port, city, or trading post where merchandise may be imported, stored or traded, usually to be exported again

An entrepôt or transshipment port is a port, city, or trading post where merchandise may be imported, stored or traded, usually to be exported again. These commercial cities spawned due to the growth of long-distance trade. Such centers played a critical role in trade during the days of wind-powered shipping. In modern times customs areas have largely made such entrepôts obsolete, but the term is still used to refer to duty-free ports with a high volume of re-export trade. This type of port should not be confused with the modern French usage of the word entrepôt, meaning warehouse.

Free economic zone area of a country where companies are very lightly taxed

Free economic zones (FEZ), free economic territories (FETs) or free zones (FZ) are a class of special economic zone (SEZ) designated by the trade and commerce administrations of various countries. The term is used to designate areas in which companies are taxed very lightly or not at all to encourage economic activity. The taxation rules are determined by each country. The World Trade Organization (WTO) Agreement on Subsidies and Countervailing Measures (SCM) has content on the conditions and benefits of free zones.

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Special economic zones of China special economic zone in China

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Yantian District District in Guangdong, Peoples Republic of China

Yantian District is one of the nine districts of the city of Shenzhen, Guangdong, China. It is adjacent to Shenzhen River and Hong Kong to the south, and is surrounded by Luohu, Longgang and Pingshan districts of Shenzhen.

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Economy of Guangdong

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References

  1. ↑ "Sourcing in China? Give BLPs a VIP Role". Inbound Logisitics. 2005. Retrieved 9 May 2014.
  2. ↑ "Chinese Bonded Areas: Choosing the Right Location" (PDF). Ernst & Young Global Limited. 2011. Retrieved 9 May 2014.
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