One of the earliest free trade zones in China, Shantou FTZ in China lies in a semitropical maritime climate. Located close to Hong Kong and Kaohsuing in Taiwan, it also boasts of a well developed and commercial port. Another important positive of Shantou FTZ is that Shenzhen FTZ and Guangdong FTZ are nearby. The city is linked with domestic and international air traffic and has substantial rail connectivity. Shantou FTZ in China possess an area of 420,000 square meters of workshops, warehouses, office blocks that investors, mostly foreign lease and purchase.
The companies located at the Shantou FTZ in China are allowed a number of benefits and advantages as indicated:
Trading units within Shantou FTZ in China 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 Shantou FTZ in China Trading companies do not have to pay any VAT while doing trade with each other and in terms of foreign trade.
The companies registered in foreign lands have to form as independent legal entities and secure a license for doing trade, and international trade.
Trading companies at the Shantou free trade zone are levied up to a maximum of 15% income tax rate. However, companies with many years of operations at the zone are provided with tax holidays for a certain period.
Irrespective of the nature of businesses and foreign trade handled by companies at the Shantou free trade zone, all are treated as exports and relevant benefits are accrued to them.
Processing units at the free trade zone of Shantou may apply for permission to sell a part of their products inside China after paying tariff and completing relevant formalities.
Units in the Shantou FTZ in China are allowed to purchase raw materials and semi-finished products made in China through domestic trade and processing inside the zone.
Companies at the Shantou free trade zone are also 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.
Domestic and international commercial organizations operating from the Shantou FTZ can display their import and export products and use the exhibition halls especially built to promote the trading activities at the free trade zone.
The warehousing units inside the Shantou FTZ in China can store all kinds of goods except those prohibited by the state. Imported goods into the domestic market can be stored here too.
Shantou free trade zone has played an important role in the Chinese economic development. The strategic location of this FTZ has enabled companies operating from here to export a significant part of their products to the global clients across the world. The Chinese economy has benefited immensely too as a result of the trade relaxations and open economic policies offered to both domestic and foreign majors working out of the Shantou FTZ in China.
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