New developments for foreign trade companies inside the Yantian and Futian FTZs
The Notice on Relevant Issues in the Administration of Foreign Trade in Free Trade Zones and Bonded Logistics Parks was issued on July 13, 2005 and clarified that trade companies inside the Yantian & Futian FTZs may apply to the Ministry of Commerce for foreign trade and distribution rights. Since the first of March, the approval right has been decentralized. Hence, Shenzhen BOFTEC is able to approve the application of adding foreign trade and distribution rights, raised by foreign trade companies inside the Yantian & Futian FTZ.
We are aware that in practice since the end of 2006 such applications have been submitted with increasing regularity. So far, a few foreign trade companies in Yantian and Futian have already obtained foreign trade & distribution rights from the Shenzhen BOFTEC. With the said rights granted, they may engage in distribution activities inside China without having to employ agents to do it for them.
The increase in applications has led to the need for the Yantian FTZ to expand to accommodate the influx of new business. According to the authorities in the zone, by the end of 2007, it’s forecasted that the Yantian FTZ will expand by 0.76 square kilometers. Warehouse rent prices will 30-60 yuan per square meter with an average warehouse size of 3000-4000 square meters. To incorporate a foreign trade company in Yantian District, a registered capital of more than two million yuan is needed.
Dezan Shira & Associates maintain an office in Shenzhen, advising foreign investors on legal administration, corporate establishment, due diligence and tax policy in the city. Please contact Alberto Vettoretti or visit the Shenzhen office website for more information.