Located in the Pudong region of China, Waigaoqiao free trade zone provides for a number of benefits to the units situated there. A detailed review of the Waigaoqiao FTZ in China offers a comprehensive insight into the facilities that the trading, processing and warehousing sector gets out of the free trade regulations for the zone.
Following are the guidelines framed for the trading companies to do business in the Waigaoqiao FTZ in China:
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 Waigaoqiao 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 Waigaoqiao FTZ in China.
Trading units within the Waigaoqiao 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.
Irrespective of the nature of businesses and foreign trade handled by companies inside the Waigaoqiao free trade zone, all are treated as exports and relevant benefits are accrued to them.
Trading companies in the Waigaoqiao 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 Waigaoqiao FTZ are provided with a tax holiday in the first year of profits and 10% flat income tax for the next two consecutive years.
Waigaoqiao FTZ in China provides for a number of incentives for the processing sector too. Some of the exciting features for this economic segment at Waigaoqiao free trade zone are as follows:
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 in the Waigaoqiao 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 Waigaoqiao 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 Waigaoqiao FTZ in China are fully bonded. When its products are shipped across the country, tariffs will be imposed on the imported raw materials.
Warehousing companies are the other ones who have their operations inside the Waigaoqiao FTZ in China. Some of the well known features for their operations are as such:
The warehousing units inside the Waigaoqiao 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 Waigaoqiao FTZ can display their import and export products and use the exhibition halls.
Usual warehousing operations such as sorting, sub-packing, labeling, marking are allowed for the warehousing units at the free trade zone.
Waigaoqiao FTZ in China is one of the popular free trade zones in China that provides for a plethora of opportunities for both domestic and global business houses operating from this part of the world.
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