Ningbo Free Trade Zone in China was set up by the Chinese authorities in November, 1992. The zone is spread over an area of 2.3 square kilometers and offers preferential policies of exemption from taxes, customs duty and licensing. Ningbo FTZ (NFTZ) in China provides for export processing, international trade, bonded logistics and commodity exhibition. The exclusive free trade zone in the Zhejiang province of China, Ningbo FTZ is one of the major windows of fast economic growth in the region.
NFTZ has plans for developing hi-tech and modern logistics industry. This free trade zone has plans for developing a Computer Park, national IC Industrial Park, Household Appliance Industrial Park, International Software Park, Overseas Scholar Pioneering Park, and Machinery Industrial Park. The Ningbo FTZ in China has opened international trade, warehousing and logistics cluster, industrial cluster and hi-tech industrial bases to facilitate faster trade and manufacturing activities in the region.
The commercial organizations operating at the Ningbo FTZ are provided with a range of incentives and inducements as indicated:
The materials imported at the Ningbo 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 the NFTZ entities and secure a license for doing foreign trade.
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 NFTZ in China.
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 Ningbo free trade zone.
Irrespective of the nature of businesses and foreign trade handled by companies at the Ningbo free trade zone, all are treated as exports and relevant benefits are offered.
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.
Units are allowed to purchase raw materials and semi-finished products made in China through domestic trade and processing inside the zone.
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 Ningbo FTZ can display their import and export products and use the exhibition halls.
In addition to, an economic and trade center, construction service center, foreign investment service center and human resources service center as per the requirements of commercial organizations operating in the zone. As part of the development process, Ningbo FTZ has obtained ISO 14001 environmental management certification. Consequently, villas, apartments, medical and leisure facilities at the free trade zone conform to the best of globally acceptable environmental standards and act as a catalyst to the growth of the zone.
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