The important features and facilities associate with the Shenzhen free trade zone in China are as mentioned:
Units in the Shenzhen 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 Shenzhen 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 Shenzhen FTZ in China are fully bonded. When its products are shipped across the country, tariffs will be imposed on the imported raw materials.
The warehousing units inside the Shenzhen 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 Shenzhen FTZ can display their import and export products and use the exhibition halls.
Irrespective of the nature of businesses and foreign trade handled by companies inside the Shenzhen free trade zone, all are treated as exports and relevant benefits are accrued to them.
Trading companies in the Shenzhen 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 Shenzhen FTZ are provided with a tax holiday in the first year of profits and 10% flat income tax for the next two consecutive years.
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 companies registered in foreign lands have to form as independent legal entities and secure a license for doing trade, imports and exports from the Shenzhen FTZ in China.
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 Shenzhen FTZ in China.
Trading units within the Shenzhen 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.
Among the many free trade zones operating in China, Shenzhen FTZ offers one of the most comprehensive and liberal working ambiance. With more than 300 units, mostly foreign operating from the Shenzhen FTZ it acts as one of the major foreign trade zones in China. As the free trade zones in China are working as an important engine for the national economic growth, the Chinese government has ensures that the laws and rules regulating the working of FTZs are in accordance with the best of the global trade practices and in matching with the broad national interests of China. Shenzhen free trade zone is one of the popular trade promotion zones in China and attracts a good number of international investors.
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