Shenzhen Free Trade Zone Service
Shenzhen hotline: 86-755-82143348 Email: amyhuang@citilinkia.com
Shenzhen Free Trade Zone Concpet
Shenzhen Qianhai Shekou free trade zone is one of the three Guangdong free trade zones, (the other two are in Guangzhou and Zhuhai respectively). Here ‘free trade zone’ refers to a certain zone where products can be input, produced or exported without intervention from China customs so factors, such as heavy tariffs and ban for productions, can be exempted. Main purpose of setting Shenzhen free trade zone from Chinese government is to create a competitive international business environment that benefit both for inner and overseas investments.
Additionally, it is important to notice that Free trade zone and Free trade area are two different concepts. The former one refers to individual country and follows the regulations that set by world customs organizations (WCO). In free trade zones, the protections and exemption of customs tariffs are the core policies that benefit investors. In contrast, free trade area refers to a number of countries and the included two or more business areas. Requirements in free trade area are according to World trade organizations (WTO). Free trade area can include many different types of benefit policies. However, the common point of Free trade zone and Free trade area is to reduce international trade cost and promote international business.
Shenzhen Free trade zone advantages
Shenzhen free trade zone has some advantages compare to non free trade zones and these advantages can be mainly divided into three classifications.
1 Corporation registration
In free trade zone, both overseas and domestic enterprises and other economic organizations or individuals are allowed to invest and establish trading, warehousing or export. However, in non-free trade zone more restrictions are set for foreign investors. Generally only offices that have no status of legal representative can be establish in this type of zone.
2 Customs administration
In free trade zone, bonded system is adopted and productions transported in the free trade zone from overseas, or vice versa, shall be exempted from import duties and licenses compared to non-free trade zones. Additionally, Electronic Data Interchange (EDI) system are applied in free trade zones with wider online network linking customs and enterprises compared to non-free trade zones. Only a limited number of large-scale companies are allowed to benefit from the EDI system for customs declaration.
3 Foreign exchange administration
In free trade zones, free settlement of exchanges is carried out for companies’ foreign exchange out for companies’ foreign exchange income. Foreign exchange can be either deposited in financial organizations in free trade zone, or be sold to foreign exchange banks in the zone. Foreign-funded companies in free trade zone can open their own foreign accounts according to regulations and foreign-funded companies can share a unified exchange administration with Chinese-funded companies over current accounts. In contrast, in non-free trade zone, foreign exchange settlement and transaction for foreign-funded companies are complex. Foreign exchange shall be sold only to the appointed foreign exchange banks.
Successful cases of ATAHK's services in Shenzhen Free trade zone
Although Shenzhen free trade zone is newly set at the end of 2014, our company has successfully serviced a number of foreign companies to do business in such zone. Successful cases cover a wide range of industries, such as information technology, international trade and financial sectors.
Contact us
For further queries, please do not hesitate to contact ATAHK at anytime, anywhere by simply calling China hotline at 86-755-82143348, or emailing to amyhuang@citilinkia.com.