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Opportunities

Zhuhai FTZ’s Advantages over Non-FTZ



Item

FTZ

Non-FTZ

 

Scope of Business

 

1Foreign funded international trade business is encouraged;

2Bonded warehousing is encouraged, and simple processing is allowed;

3Restrained Productive Projects are conditionally allowed;

4Foreign funded service trade business is allowed.

1Foreign funded international trade business is restrained;

2Bonded warehousing is restrained;

3Restrained Productive Projects are restrained;

4Foreign funded service trade business is restrained.

 

Customs Control

 

Principles

 

Inward materials and parts to be used by in-zone processing trade enterprises, transit goods, warehoused goods and outward goods transported abroad via FTZ are controlled by the registration system. Inward goods are not subject to license administration or quota administration (except for passive quota). Goods movement between FTZ and Non-FTZ, machineries, managerial equipment, office supplies and staff’s taxable personal articles in reasonable amount are controlled by the customs declaration system. Goods shipped from FTZ to a domestic Non-FTZ are treated as import. Goods shipped from a domestic Non-FTZ to FTZ are treated as export.

 

Trading activities between home and abroad are controlled by the customs declaration system. Import formalities must be completed when foreign goods arrive at a customs port. Export formalities must be completed before domestic goods leave a customs port.

 

Customs Duty

 

Equipment, parts and components, building materials, office supplies in reasonable amount and fuel for production that enterprises import for own use are exempt from customs duties and import VAT. Bonded functions can be brought into play for delay or exemption of transit duties.

 

Customs duties and import VAT are levied on equipment imported for own use, except for Encouraged Projects and 100% export processing enterprises. Parts and components, building materials, office supplies and fuel for production are subject to customs duty and import VAT.

 

Deposit Account

 

The bank deposit account system is not in effect for processing trade. Neither customs diary nor bank deposit is required. Contract registration is to be approved by the Administration Committee.

 

The bank deposit account system for processing trade is in full force. The contract registration process involves the Foreign Trade and Economic Cooperation Bureau, the Tax Bureau, the customs and the bank.

 

Customs Clearance

 

The new customs declaration mode of One Time Declaration, One Time Documentation Check, One Time Inspection is applied to import and export.

 

Declaration at other places or customs transit is applied for import and export. Complicated formalities are involved, including transmittal of contract between supervising customs, and declaration at frontier port customs. 

 

Customs Diary

 

The processing trade contract registration system is in effect, rather than the bank deposit account system for processing trade. 

 

Customs diary is required.

 

Contract

 

Contract modification formalities can be directly completed with more convenience via a computer system linking enterprises to the local customs.

 

Contract modification formalities must be completed with the governing authorities in accordance with the contract registration procedure.

 

Domestic Sale

 

There is no restriction in the proportion between domestic sale and export sale. For domestic sale, processing enterprises may sell their imported materials and parts and finished products to outside FTZ upon the completion of the formalities required and the payment of tariff and import duties.

 

There is a restriction in the proportion between domestic sale and export sale.

 

Warehousing Time Limit

 

Foreign goods may be put in bonded storage in FTZ for a period of time until the expiry of the contract. Extension or carry-over formalities can be handled at the time of expiry. Simple processing, such as classification, screening or repackaging, can be made to warehoused goods.

 

The time limit for goods warehousing is generally 3 months.

 

Foreign Exchange Control

 

Settlement

 

No verification is required for enterprises’ foreign exchange receipts and payments. Revenue in foreign exchange can be retained in full amount.

 

Circulation of foreign currencies is prohibited. Settlement is compulsory for revenue in foreign exchange from current account transactions.

 

Account

Both Chinese and foreign funded enterprises may open foreign currency accounts with banks in FTZ.

Enterprises cannot maintain a foreign currency account without approval.

 

Verification

No verification is required for the collection of export proceeds and the payments for imports in foreign exchange.

Verification is required for both the collection of export proceeds and the payments for imports in foreign exchange.

 

Administration

The control policy on foreign exchange for current account is the same for Chinese and foreign funded enterprises. Both domestic and overseas financial and insurance institutions are permitted to open affiliates or offices in FTZ. 

The policies on foreign exchange settlement and selling for Chinese funded enterprises are different from those for foreign funded enterprises.


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