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Organization of the logistic chain in the Chinese international trade Shanghai Container Group, and it operates the Waigaoqiao Phase II and Phase III container terminals. – Shanghai East Container Terminal Co., Ltd (www.sect.com.cn) a joint-venture enterprise co-established by Shanghai International Port Group Co. Ltd (SIPG) and APM Terminals (Shanghai), to operate Waigaoqiao Phase IV container terminal. – Shanghai Mingdong Container Terminal Co., Ltd (www.smct.com.cn) operates Waigaoqiao Phase V container terminal. It is a joint-venture co-established by Shanghai International Port Group Co. (SIPG), Ltd and Hutchison Port Holdings. The Yangshan Phase I Container Terminal is operated by Shengdong Container Terminal Co. Ltd. (www.shsict.com) which is invested by Shanghai International Port Group (SIPG) and Shanghai Container Terminal Co., Ltd. The Yangshan Phase II Container Terminal has 5 investors: APM Terminals (32%), Hutchison Port Holdings (32%), Shanghai International Port Group (16%), Cosco Pacific (10%) and China Shipping Group (10%). II.3.5. Logistic infrastructures in Shanghai A. Bonded Policies in China The bonded policy is named “Baoshui” in Chinese, which in general means tax free. – Bonded Zone (Baoshui Qu) “Baoshui Qu” is used for Bonded Zone, Bonded Area or Free Trade Zone. The first bonded zone was established in Shanghai Waigaoqiao in 1990. Since then China has developed 15 bonded zones in total, all in coastal areas. Main Bonded zones features are: � International trade, export processing, warehousing, transit trade, inside-the-zone trade, distribution, processing and other related operations are permitted. � Foreign wholly-owned trade companies can only set up their companies in a bonded zone. � Merchandises entry and exit the Zone are free of customs declaration formalities, customs duty, import and export license, and only EDI electronic filing is required. Except for the passive quota control, no export quota or permit management will be imposed on goods moving between the area and foreign countries. � Financing and Foreign Exchange � Merchandise entry and exit the Zone when transported to non-free trade areas, they are to be treated as imported goods on which taxes should be duly levied by the customs. � Raw materials, parts, components, packaging materials, and other consumptive materials for the processing of re-export products used by the inside enterprises are to free from duties. � Entrepot and storage merchandise are bonded. � Goods wholly made of imported materials leaving the zone for the other areas should go through customs procedures as imported goods and should be taxed as finished products. If the products are under permit control, the owner should submit valid import permits to the customs for inspection. Goods partially made of imported materials and transported to the other areas should be taxed on the imported pieces. CEIBS Port of Barcelona Chair of Logistics 21
Organization of the logistic chain in the Chinese international trade – Bonded Logistics Park (Baoshui Wuliu Yuanqu) Bonded Logistics Park is a special logistics park established under a bonded area and located close to a port area. They enjoy a special policy named “Port-Area Linkage”. The purpose of the bonded logistics parks is to warehouse the import goods from abroad. Only simple processing is allowed in the park, such as package and sort. Bonded Logistic Parks are supervised by a special Custom office. � Logistic parks enjoy the Free Trade Zone policies and Export Processing Zone policies. � Custom operation is simplified There are only 8 Logistic parks with these characteristics in China. Bonded areas Province Area Port-Area Linkage Shanghai Waigaoqiao Shanghai 5,5 yes Shenzhen Yantian Guangdong -- yes Shenzhen Shatou Jiao Guangdong 0,2 no Dalian Dayao Liaoning 1,25 yes Guangzhou Guangdong 1,4 no Tianjin Tianjin 5 yes Qingdao Shandong 2,5 yes Shenzhen Futian Guangdong 1,35 no Zhangjiagang Jiangsu 2 yes Haikou Hainan 1,93 no Ningbo Beilun Zhejiang 2,3 yes Fuzhou Fujian 1,8 no Xiamen Xiangyu Fujian 0,6 yes Shantou Guangdong 2,3 no Zhuhai Guangdong 3 no Source: Provincial governments – Bonded Logistics Center (Baoshui Wuliu Zhongxin) Two kinds of bonded logistics center exists � Type-A bonded logistics center: run by a domestic company and is approved by the custom. Specially run the bonded warehousing business. Also can have public logistics center and internal logistics center � Type-B logistics center: is the one which can be run by one domestic company and many companies entered CEIBS Port of Barcelona Chair of Logistics 22
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