Mar. 19 – China’s State Council officially approved the establishment of the Nantong Bonded Zone on January 3, 2013. The zone, which has a planned area of 5.29 square kilometers, is the first of its kind in the central part of Jiangsu Province.
The Nantong Bonded Zone will consist of two parks. Park A will be located in the former Nantong Export Processing Zone with a planned area of 1.50 square kilometers and will focus on port logistics services, integrated services and innovation-oriented businesses. Park B will be located near the Yangtze River and is projected to cover an area of 3.79 square kilometers. Park B will focus primarily on deals with port logistics, bonded logistics and bonded processing.
It is reported that the total investment in infrastructure for the zone will reach up to RMB700 million.
The Nantong Bonded Zone has been designated to serve the following nine sectors:
International procurement and distribution
International entrepot trade
Research and development
Inspection and maintenance
Exhibition and demonstration
Furthermore, enterprises in the Nantong Bonded Zone shall enjoy preferential policies in five areas, namely: tax, customs, inspection, foreign exchange, and foreign trade.
Equipment imported by enterprises in the zone will be exempt from import duties and import-related value-added tax (VAT).
Exported goods or goods traded between enterprises in the zone will be exempt from VAT and consumption tax.
VAT rebates will be granted for water, power and gas expenses for enterprises in the zone.
Foreign goods will be bonded upon entry to the zone while domestic goods can enjoy tax refunds upon entry to the zone.
According to the “Measures on Customs Supervision and Control over Bonded Zones,” import duties and import-related taxes on goods entering bonded zones from overseas will be handled as follows:
- Machines, equipment and other goods and materials needed for infrastructure construction projects in bonded zones shall be exempt from duties and taxes.
- Equipment for production and management, articles for office use, fuel for production, as well as materials and equipment needed for the construction of production and storage facilities by enterprises in bonded zones shall be exempt from duties and taxes.
- Equipment for management and articles for office use required by administrative institutions in bonded zones shall be exempt from duties and taxes.
- Raw materials, spare parts, components and packaging materials needed by enterprises in the bonded zones for the processing of export goods shall be treated as bonded goods.
The system of “one customs clearance, one bill of review, and one inspection” shall be adopted for imported and exported goods for enterprises in the bonded zone.
State inspection policies
Imported goods, and office and living consumables used by enterprises in the zone, shall be exempt from the quality inspection.
For goods entering the bonded zone from any place within China, they shall be exempted from inspection and quarantine.
Foreign exchange policies
Verification procedures for export proceeds are not required for goods transported or sold overseas by enterprises in the bonded zone, and for enterprises within the bonded zone, they do not need to go through the verification procedures of foreign exchange payments for imports when paying foreign exchanges for imported goods.
Foreign trade and economic policies
The “Standing Account System for Bank Deposits of Trade Processing” shall not be implemented for enterprises in the bonded zone, and such enterprises are not subject to the “Restricted Commodities Catalog of Trade Processing.”
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