Fuzhou free trade zone in China offers a good number of opportunities for economic growth. The free trade zone has come into existence a few years ago and has ambitious plans for developing a base for hi-tech and modern logistics industry in the region. Besides a Software Park, Industrial Park, Household Appliance Park, International Software Park and Machinery Industrial Park, the Fuzhou TTZ in China is working on setting up big trading and warehousing operations.
The commercial organizations operating at the Fuzhou FTZ are provided with a range of incentives and inducements by the Chinese government as indicated:
Processing units at the Fuzhou FTZ in China are allowed to purchase raw materials and semi-finished products made in China through domestic trade and processing inside the zone.
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 Fuzhou FTZ in China.
The materials imported at the Fuzhou FTZ in China are fully bonded.
When its products are shipped across the country, tariffs are imposed on the imported raw materials only.
The companies registered in foreign lands have to form as independent legal entities in order to avail of the benefits for of the Fuzhou FTZ.
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 at the 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 Fuzhou FTZ can display their import and export products and use the exhibition halls.
Trading units 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 at the Fuzhou free trade zone.
Irrespective of the nature of businesses and foreign trade handled by companies at the Fuzhou free trade zone, all are treated as exports and relevant benefits are offered.
Free trade zones in China have acted as big drivers for the growth of national economy. From protecting the vital interests of the local and native companies, the growth of free trade zones in China has allowed the country to carry on with higher degree of exports. FTZs in China has provided for country earning foreign exchange handsomely. While the native industries have grown significantly, the foreign manufacturers have found setting up shops in China as a financially viable and profitable proposition. In fact, the growth of free trade zones in China has played a crucial role in making the country an important economic power in the world. With Fuzhou FTZ, Chinese economy has benefited immensely and plans for further expansion of this free trade zone are on the cards.
|
