Bonded leasing business enjoys early success at zone

Li Xinran
Through the bonded leasing model, a new model allowed by the state, companies can save nearly 90 percent on their import tariff and import value-added tax.
Li Xinran

A truck carrying 3,200 tons of crawler crane components, worth nearly 100 million yuan (US$14.3 million), passed the checkpoint on April 7, signalling success in the first practice of the bonded leasing business in the Shanghai Jiading Comprehensive Bonded Zone.

Bonded leasing business enjoys early success at zone
Li Huacheng

The crane is about 6 meters high and imported from Germany. Shanghai Ouxing, a Jiading-based storage and transportation firm, leased the equipment from Dubai, United Arab Emirates, and handled import customs clearance process for a subsidiary of Sinopec through bonded leasing. After dismantling, the large equipment will be transported to the construction site where it will be installed and put into use.

“Due to the high cost of equipment and import taxes and fees, there is very little demand for such cranes in the domestic market,” said Lu Ye, deputy general manager of Shanghai Ouxing. “However, enterprises can save nearly 90 percent by utilizing bonded leasing through installment rental payments.”

“Our bonded leasing business revitalized resources in the comprehensive bonded zone and offered a new model for domestic enterprises to deploy advanced overseas equipment,” said Yang Lifeng, general manager of Jiading Comprehensive Bonded Zone Co.

In the next step, the zone will continue to promote business innovation and accelerate the construction of the bonded racing car service center.

Additionally, the zone plans to enhance the volume of bonded maintenance business by attracting more enterprises to run their business there. They will also complete the construction of bonded artwork warehouses and promote the exchange of bonded artworks and cultural relics, according to Yang.

Special Reports