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China Free Trade Zone Benefits

Updated:2018-9-10 14:36:02    Source:www.tannet-group.comViews:71

China free trade zones have played a significant role in bringing the business landscape of China up to the mark. Free trade zones (FTZs) are special economic zones where businesses are allowed to import, export, and manufacture their goods without intervention from any Customs Authority. Over the last few years, the Chinese government has focused on the development of these economic zones. Currently, there are a total of 11 Free Trade Zones in China. FTZs present great investment opportunities for foreigners due to the implementation of pro-business regulations.

Chinese government offers several incentives and grants to those investors investing in FTZs, from tax incentives to industry-specific benefits. The following are the common reasons on investing in FTZs in China.

1. Reduced Taxes
When it comes to tax benefits, certain FTZs offer a reduction in the corporate income tax. The goal of tax incentives is to ensure that the companies don’t leave. Guangdong FTZ and Fujian FTZ require companies to pay only 15% tax of their corporate income.

Shanghai FTZ, on the other end, allows registered companies to pay CIT in a five-year installment plan. Moreover, most FTZs allow duty-free import when it comes to machinery or any other equipment that the company needs for its operation.

2. Customs Clearance
When it comes to customs clearance, FTZs streamline the process especially in terms of clearance payments and declarations. For example, companies can make a collective declaration for the trade of goods, which enables them cut down clearance costs. Another benefit of trading in an FTZ is that the clearance time is as short as a couple of days.

3. Duty Free Warehousing
You can import goods to these FTZ warehouses before importing into Mainland China. You can avoid having to deal with the massive headache of figuring out how much the import tax will be, how to classify it, etc etc. Just get those goods to your FTZ warehouse and you are good to go.

You can list these products for sale in China, and ship them B2C (business to consumer) direct from this warehouse. That means you can pass the import duties responsibility onto the individual consumer or let the China post office handle it for the person receiving the goods.

4. Industry-Specific Liberalized Policy
FTZs in China also have liberalizations for specific industries that are not mainstream in China. For example, logistics companies can enjoy investment up to 51% in domestic and international companies if they are established in an FTZ.

Contact Us
If you have further inquires, please do not hesitate to contact Tannet at anytime, anywhere by simply visiting Tannet’s website english.tannet-group.com, or calling Hong Kong hotline at 852-27826888 or China hotline at 86-755-82143422, or emailing to tannet-solution@hotmail.com. You are also welcome to visit our office situated in 16/F, Taiyangdao Bldg 2020, Dongmen Rd South, Luohu, Shenzhen, China.

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