Zhanjiagang FTZ in China is one of the major free trading zones in China. Trading, exports, warehousing are some of the major activities which are being undertaken by the companies and units operating at the Zhanjiagang FTZ.
Some of the major concessions and facilities that are being offered to the units at the Zhanjiagang FTZ in China are as such:
Trading units within the Zhanjiagang 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 Zhanjiagang free trade zone, all are treated as exports and relevant benefits are accrued to them.
Trading companies in the Zhanjiagang 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 Zhanjiagang FTZ are provided with a tax holiday in the first year of profits and 10% flat income tax for the next two consecutive years.
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 free trade zone here.
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 this FTZ in China.
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 Zhanjiagang 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 Zhanjiagang 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 Zhanjiagang 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 Zhanjiagang 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.
Usual warehousing operations such as sorting, sub-packing, labeling, marking are allowed for the warehousing units at the free trade zone
Domestic and international business organizations operating from the Zhanjiagang FTZ can display their import and export products and use the exhibition halls.
In addition to the existing benefits, units at the Zhanjiagang FTZ are also being offered many other advantages. From simplification of foreign exchange earnings and repatriation of the benefits to the parent country, overall simplification of rules and custom levies and taxes make doing business at the Zhanjiagang FTZ a profitable and interesting proposition.
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