The major features and policies that the companies operating at the Dalian FTZ in China get are as indicated below:
The companies registered in foreign lands have to form as independent legal entities and secure a license for doing trade, imports and exports from the Dalian FTZ in China.
Trading companies in the Dalian FTZ in China are levied up to a maximum of 15% enterprise income tax rate. However, companies with more than a decade of operations at the Dalian FTZ are provided with a tax holiday in the first year of profits and 10% flat income tax for the next two consecutive years.
Trading units within the Dalian FTZ are allowed to retain in full their foreign exchanges and carry on with the settlement and sale of exchange in banks, within the guidelines of concerned regulatory authorities.
Trading companies do not have to pay any VAT while doing trade with each other and with import and export trade provided they have operations within the Dalian FTZ in China.
Irrespective of the nature of businesses and foreign trade handled by companies inside the Dalian free trade zone, all are treated as exports and relevant benefits are accrued to them.
Units in the Dalian FTZ in China are allowed to purchase raw materials and semi-finished products made in China through domestic trade and processing inside the zone.
Processing units in the Chinese free trade zone of Dalian may apply for permission to sell a part of their products inside the country after paying tariff and securing a license for imported materials.
The materials imported at the Dalian FTZ in China are fully bonded. When its products are shipped across the country, tariffs will be imposed on the imported raw materials.
Usual warehousing operations such as sorting, sub-packing, labeling, marking are allowed for the warehousing units at the free trade zone.
Companies are allowed to secure processing orders and enter into trade contracts with other units in the zone. They can also trade with companies outside the zone with designs, raw materials and equipments.
The warehousing units inside the Dalian free trade zone can store all kinds of goods except those prohibited by the state. Imported goods into the domestic market can be stored here too.
Domestic and international business organizations operating from the Dalian FTZ can display their import and export products and use the exhibition halls.
Dalian free trade zone has been one of the major success stories of the Chinese economy in recent times. Work on setting up different units exclusively for the export and trading activities in the sphere of information technology, chemicals, electronics, toys, electrical and household appliances all are underway at the Dalian FTZ in China. In the context of positive and liberal trade policies being pursued at the free trade zones across China, the economy of the country has witnessed a resounding success, offering lessons for many of the other emerging economies in the region and worldwide.
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