Chinese economy has been witnessing impressive growth due to a number of factors. The country has been through significant changes in the sphere of trade relations and business activities. Foreign investments have been coming at a very fast rate followed by the establishments of the export processing zones (EPZ)and free trade zones. There are a number of export processing zones that have been established in Beijing, Dalian and various other major cities in China. The export processing zones are special economical areas that come under the supervision of the customs. Most of the export processing zones usually cover area of about 3 sq. km. The export processing zones are usually set up within the area of any economic and technological development zone (ETDZ).
The export processing zones have facilitated trade and commerce by ensuring that the bureaucratic hurdles do not come in the way of the business activities. Goods can enter the export processing zones without making any sort of formal declarations. Goods that are re-exported after being processed and are exempted from duties.
China considers setting up the export processing zones a major step taken by the country to get involved in enhancing international trade and commercial activities. The export processing zones have not only attracted a great number of companies from abroad to invest in China but have also helped the Chinese economy to gain momentum.
The Chinese government has established several export processing zones so that the exports from the country gets a leverage. A major change that can be viewed after the establishment of the export processing zones in China is that more number of companies in the sector of manufacturing have come up here. It is believed that most of the manufacturing units are funded heavily by a host of multinational companies. Finished goods from China have proliferated into the markets of numerous countries across the world. From garments, to consumer durable goods and even fast moving consumer goods, China has now become a dominant country in exporting materials of varied kinds. The export processing zones have certainly played a pivotal role in the growth of the business entities.
Export processing zones in China has also made it sure that the illegal sale of materials after being imported (having no tax to pay) can be stopped. Within the export processing zones warehousing as well as freight transport activities have been allowed. The primary feature of the export processing zones that separates the from the free trade zones is that the companies operating in the EPZ are provided with incentives.
In the export processing zones no value added taxes are levied upon the public utilities. One thing has to be kept into account that the companies get the eligibility status for income tax benefits if they export more than 70% of their products. If a firm buys products from a Chinese company the company while selling it overseas will get an export rebate.
To know more about free trade zone services in China, browse through the pages of www.chineseftz.com.
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