Comprehensive bonded zone a boost for business
The State Council has agreed to upgrade the Jiading Export Processing Zone to a comprehensive bonded zone with the highest level of opening-up, the most preferential policies, the most complete functions and the most simplified procedures in China.
The future Jiading Comprehensive Bonded Zone will cover 0.95 square kilometers and further improve the functional policies of the existing special customs bonded areas and play a significant role in improving the existing functions of the current zone.
The new zone will also play an important role in the development of foreign trade, attracting foreign investment, promoting industrial upgrading and other aspects.
Bonded goods, tax-free for imported equipment and the transfer of equipment and tax refunds in the zone may attract export-oriented enterprises to launch businesses and help them balance international and domestic markets, reduce costs and improve competitiveness.
A trade firm in the zone has benefited from bonded repair and maintenance business. Its parent — Hesai Tech — a leading 3D sensor manufacturer, used to take two or three months to complete a set of procedures for the maintenance of export goods. Now, all processes can be completed in about 10 days, according to Zheng Cheng, the company’s logistics manager.
Foreign business accounts for 70 percent of Hesai Tech’s business, Zheng said, and policies in the upgraded zone will help further accelerate the global layout of enterprises, “which will obviously help improve our business and satisfy our customers,” Zheng said.
Johnson Fitness (Shanghai) Co, an export-oriented enterprise in the zone, is also developing its domestic business. The comprehensive bonded zone will provide the company with the possibility of transforming into a general taxpayer, which enables it to set up factories for domestic and international markets.
Lin Shao’an, its deputy general manager, said: “VAT input tax can be deducted, and domestic goods will not be refunded in the zone but will be refunded after leaving the country. Domestic sales will be taxed by item, which can substantially reduce our costs.
“Millions of yuan will be saved every year,” Lin said.